Even after termination of the Alloy Franchise Agreement, for what obligations will the franchisee remain liable?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
E. You must within 30 days of the termination or expiration pay all sums owing to us and our affiliates.
(a) Tenant will remain liable for the responsibilities and obligations, including amounts owed to Landlord, prior to the date of assignment and assumption.
Further, Tenant shall be and remain liable to Landlord for all of its obligations under the Lease, notwithstanding any assignment or assumption of the Lease by Franchisor.
Franchisor shall be entitled to recover from Tenant all amounts it pays to Landlord to cure Tenant's defaults under the Lease, including interest and reasonable collection costs.
In the latter case, all of your obligations shall remain in full force and effect during the Interim Period as if this Agreement had not expired, and all obligations and restrictions imposed on you upon expiration of this Agreement will be deemed to take effect upon termination of the Interim Period.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, even after the termination or expiration of the Franchise Agreement, franchisees have several continuing obligations. Franchisees must pay all sums owed to Alloy and its affiliates within 30 days of termination or expiration.
If Alloy assumes the lease of the franchisee's premises, the franchisee remains liable to the landlord for all obligations, including amounts owed, prior to the date of assignment and assumption of the lease by Alloy. The franchisee also remains liable to the landlord for all of its obligations under the lease, even if Alloy assumes or assigns the lease. Alloy is entitled to recover from the franchisee all amounts it pays to the landlord to cure the franchisee's defaults under the lease, including interest and reasonable collection costs.
During an Interim Period (a month-to-month extension if the franchisee continues to operate after the agreement expires but before a renewal), all obligations remain in full force and effect as if the agreement had not expired. All obligations and restrictions imposed on the franchisee upon expiration of the agreement will be deemed to take effect upon termination of the Interim Period. This means that even after the initial term, Alloy franchisees must continue to meet all financial and operational requirements until all ties are formally severed.