In the event of termination for default by the Alloy developer, what sums are included in the amounts due?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
All unpaid amounts will bear interest at the rate of 12% per annum or the maximum contract rate of interest permitted by governing law, whichever is less, from and after the date of accrual. In the event of termination for any default by you, the sums due will include all damages, costs, and expenses, including reasonable attorneys' fees and expenses, incurred by us as a result of your default. You also must pay to us all damages, costs and expenses, including reasonable attorneys' fees and expenses, that we incur subsequent to the termination or expiration of this Agreement in obtaining injunctive or other relief for the enforcement of any provisions of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, if the developer agreement is terminated due to default, the sums due to Alloy include all damages, costs, and expenses incurred by Alloy as a result of the default. This encompasses reasonable attorneys' fees and expenses.
Additionally, the developer is responsible for paying all damages, costs, and expenses, including reasonable attorneys' fees and expenses, that Alloy incurs after the termination or expiration of the agreement. These costs are related to obtaining injunctive or other relief to enforce any provisions of the agreement.
Furthermore, all unpaid amounts will accrue interest at a rate of 12% per annum, or the maximum contract rate of interest permitted by law, whichever is less. This interest applies from the date the amount was initially due. This could create a significant financial burden on a franchisee who is already in default.