When must the Alloy Facility be open and operating?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
a Facility or terminate this Agreement. You accept the license and undertake the obligation to operate the Facility using the Trademarks and the System in compliance with the terms and conditions of this Agreement.
- B. Opening. You agree that the Facility will be open and operating in accordance with the requirements of subparagraph 5.A within not later than six months after you sign a lease or 12 months after you sign this Agreement, whichever occurs first, unless we authorize in writing an extension of time.
You may not open your Facility for business until: (1) you have complied with all requirements regarding site selection and construction of the Facility; (2) we determine that your Facility has been constructed, decorated, furnished, equipped and stocked with equipment, materials and supplies in accordance with plans and specifications we have approved; (3) the initial training program we provided has been completed to our satisfaction by all required persons; (4) the initial franchise fee and all other amounts due to us have been paid; (5) you have furnished us
with all certificates of insurance required by this Agreement; (6) you have obtained all required governmental permits, licenses and authorizations necessary for the operation of your Business; (7) you are in full compliance with all the terms of this Agreement; and (8) you have 75 members who have joined during the pre-sale marketing campaign, including a signed membership agreement and a verified credit card on file.
C. Nonexclusivity; Our Reservation of Rights. The license is limited to the right to develop and operate one Facility at the Authorized Location only.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the Alloy facility must be open and operating within a specific timeframe. Specifically, the franchisee must have the Alloy facility open and operating per the requirements outlined in subparagraph 5.A, not later than six months after signing a lease or 12 months after signing the Franchise Agreement, whichever comes first. However, Alloy may authorize an extension of time in writing.
Before opening the Alloy facility for business, the franchisee must meet several requirements. These include complying with site selection and construction requirements, ensuring the facility is constructed and equipped according to Alloy's approved plans, completing the initial training program to Alloy's satisfaction, paying all due fees, providing required insurance certificates, obtaining necessary governmental permits and licenses, complying with all terms of the Franchise Agreement, and securing 75 members with signed agreements and verified credit cards during the pre-sale marketing campaign.
Time is of the essence for the development of each Alloy Facility, and the franchisee must adhere to the Development Schedule. Failing to open the Alloy facility according to the dates set forth in the Franchise Agreement or otherwise failing to comply with the Development Schedule gives Alloy the right to immediately terminate the agreement. This emphasizes the importance of meeting deadlines and fulfilling obligations to maintain the franchise rights.