What financial reports and data can Alloy require for a proposed transfer?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
site). We may conduct on-site evaluations, as we deem advisable, as part of our evaluation of the site for the Facility. We reserve the right to charge you our thencurrent site evaluation fee for each on-site evaluation we conduct. - 3. Your Submission of Information. You must furnish to us, at least 60 days prior to the earlier of (i) the date set forth in the Development Schedule by which you must execute a Franchise Agreement or (ii) the actual date on which the Franchise Agreement would be executed, a franchise application for the proposed Facility, financial statements and other information regarding you, the operation of any of your other Facilities within the Development Territory and the development and operation of the proposed Facility (including, without limitation, investment and financing plans for the proposed Facility) as we may reasonably require.
-
- Your Compliance with Our Then-Current Standards for Franchisees. You must receive written confirmation from us that you meet our then-current standards for franchisees, including financial capability criteria for the development of a new Facility.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, if a franchisee proposes to transfer their franchise, Alloy can require specific financial reports and data. At least 60 days before the earlier of the date in the Development Schedule for executing a Franchise Agreement or the actual execution date, the franchisee must provide a franchise application for the proposed Facility. Alloy also requires financial statements and other information regarding the franchisee, the operation of any other facilities within the Development Territory, and the development and operation of the proposed Facility, including investment and financing plans.
Alloy uses this information to ensure the proposed transfer meets their standards for franchisees. This includes assessing the financial capability for developing a new facility. Alloy emphasizes that meeting these standards doesn't guarantee the franchisee's success but is necessary to maintain the brand's reputation and goodwill.
In addition to these financial disclosures, Alloy requires that the franchisee is in good standing. This means the franchisee must not be in default of the Franchise Agreement or any other agreements with Alloy or its affiliates. All monetary and other material obligations under the Franchise Agreements for all existing facilities must be satisfied on a timely basis. This ensures that the franchisee has a solid operational and financial history before transferring the franchise.