What factors does Alloy consider when accepting a location for a Franchised Business?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
The factors which we consider in accepting your location include the size and location of the premises, population in the immediate area and/or median household income, the lease terms for the premises, availability of parking and ease of access, types of businesses in close proximity to the premises, competition from similar businesses and other similar factors.
We will have 30 days after receiving all information we require concerning the proposed site to notify you whether the site is accepted or not. If we do not provide our specific acceptance of a location within this 30 day period, the location is deemed not accepted. Our acceptance only indicates that the site meets our minimum criteria for a Facility. If you are unable to obtain possession of a suitable site for your Franchised Business by lease, sublease or purchase agreement within six months after you sign the Franchise Agreement, we may provide you with an extension of this timeframe or we may terminate your Franchise Agreement. We utilize this same process for each Facility you are obligated to develop under an Area Development Agreement.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 31–42)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, several factors are considered when evaluating a potential site for a franchised business. These factors include the size and location of the premises, the population and median household income in the immediate area, and the lease terms. Alloy also assesses the availability of parking, ease of access, the types of businesses nearby, and competition from similar businesses.
Alloy requires franchisees to locate a site and secure it with a lease, sublease, or purchase agreement within 180 days of signing the Franchise Agreement. Franchisees may use Alloy's preferred real estate vendors to help with the site search. The franchisee must submit all required information and materials for Alloy to review the proposed site. Alloy then has 30 days to notify the franchisee whether the site is accepted. If Alloy does not respond within 30 days, the site is considered not accepted.
It's important to note that Alloy's acceptance of a site only indicates that it meets the minimum criteria for a facility. If a franchisee cannot secure a suitable site within six months of signing the Franchise Agreement, Alloy may either grant an extension or terminate the agreement. This same process is used for each facility that a franchisee is obligated to develop under an Area Development Agreement. Alloy also states that they may reject a proposed location based on their business judgement.