Does the Alloy FDD allow franchisees to disclaim reliance on statements made by the franchisor or their representatives in questionnaires or acknowledgments?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
ne of the states listed in the heading of this Rider (the "Applicable Franchise Registration State") or a non-resident who is acquiring franchise rights permitting the location of one or more ALLOY® businesses in the Applicable Franchise Registration State. B. We and you have contemporaneously herewith entered into a Franchise Agreement (the "Agreement") and/or an Area Development Agreement (if applicable) and wish to amend the Agreement as provided herein. NOW, THEREFORE, for and in consideration of good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the FDD and Agreement and Area Development Agreement (if applicable) are hereby amended as follows: 1. The following language is hereby added to the end of the FDD, Agreement and Area Development Agreement (if applicable): "No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise." 2. Except as provided in this Rider, the Agreement and Area Development Agreement remains in full force and effect in accordance with its terms. This Rider shall be effective only to the extent that the jurisdictional requirements of the franchise law of the Applicable Franchise Registration State are met independently without reference to this Rider. YOU: WE: ALLOY PERSONAL TRAINING, LLC
CALIFORNIA ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT
Alloy Personal Training, LLC is a Georgia limited liability company.
The following information applies to franchises and franchisees subject to the California Franchise Investment Act. Item numbers correspond to those in the main body.
THE CALIFORNIA INVESTMENT LAW REQUIRES THAT A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE BE DELIVERED TOGETHER WITH THE DISCLOSURE DOCUMENT AT LEAST 14 DAYS PRIOR TO EXECUTION OF AGREEMENT.
OUR WEBSITE IS WWW.ALLOYFRANCHISE.COM. OUR WEBSITE HAS NOT BEEN REVIEWED OR APPROVED BY THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION & INNOVATION. ANY COMPLAINTS CONCERNING THE CONTENT OF THIS WEBSITE MAY BE DIRECTED TO THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION & INNOVATION AT www.dfpi.ca.gov.
SECTION 31125 OF THE FRANCHISE INVESTMENT LAW REQUIRES US TO GIVE TO YOU A DISCLOSURE DOCUMENT APPROVED BY THE COMMISSIONER OF FINANCIAL PROTECTION & INNOVATION BEFORE WE ASK YOU TO CONSIDER A MATERIAL MODIFICATION OF YOUR FRANCHISE AGREEMENT.
Item 3
Item 3 is amended to provide that neither we nor any other person identified in Item 2 is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities Exchange Act of 1934, 15 U.S.C.A. 78a et seq., suspending or expelling such persons from membership in such association.
Item 17
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- California Business & Professions Code Sections 20000 through 20043 provide rights to you concerning termination, transfer or nonrenewal of a franchise.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to the 2025 Alloy Franchise Disclosure Document, franchisees in certain states are protected from waiving their right to rely on statements made by Alloy or its representatives. Specifically, addenda for California, Illinois, Maryland, Minnesota, and Washington state that no statement, questionnaire, or acknowledgment signed by a franchisee can be interpreted as disclaiming reliance on statements made by Alloy or its brokers. This means Alloy franchisees in those states retain their legal rights to claim they relied on information provided by the franchisor during the franchise sales process, even if they sign documents to the contrary. These provisions supersede any other conflicting terms in any document executed in connection with the franchise.
For a prospective Alloy franchisee, this is a significant protection. It prevents Alloy from using standard contract language to shield itself from liability for misrepresentations made during the sales process. If a franchisee believes they were misled about potential earnings, market conditions, or other key aspects of the franchise, these clauses ensure they can still pursue legal action based on that reliance. This protection is particularly important in states with franchise-specific laws designed to protect franchisees from overbearing franchisors.
It's important to note that these protections are specifically mentioned in the addenda for California, Illinois, Maryland, Minnesota, and Washington. Franchisees in other states may not have the same explicit safeguards. Therefore, prospective franchisees should carefully review the FDD addendum for their specific state and consult with a legal professional to understand their rights and protections under applicable franchise laws. This ensures they are fully aware of their legal standing and recourse options should any issues arise during the franchise relationship.