What is the effect of the 'Jury Waiver' clause in the Alloy franchise agreement?

According to Alloy's 2025 Franchise Disclosure Document, the franchise agreement contains a jury trial waiver provision. This means that a franchisee may be waiving their right to a jury trial. However, the FDD states that this provision may not be enforceable under California law.

This waiver means that any disputes arising under the franchise agreement might be resolved by a judge rather than a jury. Jury waivers are relatively common in franchise agreements, as they can lead to quicker and potentially less expensive resolutions of disputes. However, the enforceability of these waivers can vary by state.

For prospective Alloy franchisees in California, it's important to note that the enforceability of the jury trial waiver is uncertain. If a franchisee brings a claim against Alloy and the case is heard in California, a court might not uphold the waiver, allowing for a jury trial. Franchisees should seek legal counsel to fully understand their rights and options in the event of a dispute, especially regarding the enforceability of specific clauses in their state.