Following termination or expiration of the Alloy Development Agreement, can the developer continue to represent themselves as a developer of Alloy?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. You must immediately cease to operate your business under this Agreement and must not thereafter, directly or indirectly, represent to the public or hold yourself out as a present or former developer of ours except in connection with the business operations of any existing, Facilities that have been developed prior to the termination of this Agreement and that are still operating under a valid Franchise Agreement.
- C. Except as specifically permitted under any then-effective Franchise Agreement, you must take such action as may be necessary to cancel or assign to us or our designee, at our option, any assumed name or equivalent registration that contains the name or any of the words ALLOY or any other Trademark of ours, and you must furnish us with evidence satisfactory to us of compliance with this obligation within 30 days after termination or expiration of this Agreement.
- D. Except as specifically permitted under any then-effective Franchise Agreement, you must assign to us or our designee all your right, title, and interest in and to your telephone numbers and must notify the telephone company and all listing agencies of the termination or expiration of your right to use any telephone number in any regular, classified or other telephone directory listing associated with the Trademarks and to authorize transfer of same at our direction.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, after the Development Agreement terminates or expires, the developer's ability to represent themselves as an Alloy developer is restricted. Specifically, the developer must immediately stop operating their business under the Development Agreement. They cannot directly or indirectly present themselves to the public as a current or former Alloy developer.
However, there is an exception. The developer can continue to represent themselves as an Alloy developer if it relates to the business operations of existing Alloy facilities that were developed before the termination and are still operating under a valid Franchise Agreement. This exception allows for continued association with Alloy, but only in connection to already-established and operating franchises.
In practical terms, this means a former developer cannot solicit new business or promote themselves as an active Alloy developer once the agreement ends, except to the extent necessary to manage existing franchise locations. This restriction protects Alloy's brand and prevents confusion among potential franchisees or customers. The developer must also transfer any assumed names, telephone numbers, and listings associated with the Alloy trademarks back to Alloy, ensuring a clean break and preventing unauthorized use of the brand's identity.