Does the Alloy FDD require a specific form of acknowledgment from the principal?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
This Rider to State Addendum to ALLOY® Franchise Disclosure Document ("FDD"), Franchise Agreement and/or Area Development Agreement (if applicable) is entered into by and between Alloy Personal Training, LLC, 2500 Old Alabama Road, Suite 24, Roswell, Georgia 30076 ("we" or "us") and ("you"). A. This Rider is being signed because you are a resident of one 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.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to the 2025 Alloy FDD, in certain states, a rider is added to the Franchise Disclosure Document, Franchise Agreement, and Area Development Agreement that addresses acknowledgments. This rider specifically applies to franchisees who are residents of California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin, or non-residents acquiring franchise rights in those states.
The rider includes a provision stating that no acknowledgment signed by a franchisee can waive claims under applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Alloy or its representatives. This clause is designed to protect franchisees by ensuring they retain their legal rights and recourse, regardless of any acknowledgments they may sign during the franchise commencement process.
This provision supersedes any conflicting terms in other documents executed in connection with the franchise agreement. However, the rider's effectiveness is contingent on meeting the jurisdictional requirements of the franchise law in the relevant state, independent of the rider itself. This means that while the rider provides additional protection, franchisees must still ensure compliance with all other applicable state laws and regulations.