Can I face competition from other franchisees within my Alloy Development Territory?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
rve the right to do so in the future, without first obtaining your consent.
Area Development Agreement
If you enter into an Area Development Agreement, you will receive a Development Territory within which you will have certain rights to develop multiple Alloy Facilities. Although you will receive a Development Territory with certain protected rights to develop multiple Alloy Facilities, you will not receive an exclusive territory. You may face competition from other franchisees, from outlets we own, or from other channels of distribution or competitive brands that we control. The size of the Development Territory will depend on the number of Facilities you commit to develop, and may be described in terms of contiguous zip codes, street or county boundaries, or other similar methods, and may be depicted on a map. If you meet the Minimum Performance Schedule, comply with all other provisions described in the Area Development Agreement and otherwise comply with the provisions of each related Franchise Agreement, we will not establish or license others to establish a Facility within the Development Territory assigned to you. You maintain your rights to your Development Territory even if the population increases.
We will grant you a Development Territory as described above, which will be set forth in an exhibit to your Area Development Agreement. Except as expressly limited by the Area Development Agreement, we and our affiliates retain all rights with respect to Facilities, the Marks, and any products and services anywhere in the world including the right: (a) to produce, offer and sell and to grant others the right to produce, offer and sell the products offered at Facilities and any other goods displaying the Marks or other trade and service marks through alternative distribution channels, as described above, both within and outside your Development Territory, and under any terms and conditions we deem appropriate;
Source: Item 12 — TERRITORY (FDD pages 42–46)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, if you enter into an Area Development Agreement, you may face competition from other franchisees within your Development Territory. Although you will receive a Development Territory with certain protected rights to develop multiple Alloy Facilities, the agreement does not grant you an exclusive territory. This means that other franchisees, outlets owned by Alloy, other distribution channels, or competitive brands that Alloy controls could potentially operate within your Development Territory.
To maintain your rights under the Area Development Agreement, you must adhere to the Minimum Performance Schedule by having the agreed-upon cumulative number of Alloy Facilities open and operating by the specified dates. Failure to meet this schedule could result in a loss of territorial exclusivity or termination of the Area Development Agreement. The Development Territory's size will depend on the number of Alloy Facilities you commit to developing and may be defined using contiguous zip codes, street or county boundaries, or other similar methods, potentially depicted on a map.
After you've signed a lease for the last Alloy Facility to be developed within your Development Territory, your exclusive rights under the Area Development Agreement expire. At that point, Alloy and its affiliates have the right to operate and grant others the rights to develop and operate Alloy Facilities within your Development Territory. This is subject to the territorial rights under your franchise agreements for Alloy Facilities in the Development Territory. The Development Territory will not be altered unless you and Alloy mutually agree, and it will not be affected by your sales volume.