Does the Alloy franchise agreement address a franchisee's reliance on the Alloy franchise disclosure document, including any exhibits?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
- D.
This Agreement together with all schedules, addenda and appendices to this Agreement constitute the entire agreement between the parties and supersede any and all prior negotiations, understandings, representations and agreements.
Nothing in this or in any related agreement, however, is intended to disclaim the representations we made in the Franchise Disclosure Document we furnished to you.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to the 2025 Alloy Franchise Disclosure Document, the franchise agreement does address a franchisee's reliance on the Franchise Disclosure Document (FDD). Specifically, the standard agreement includes a clause stating that nothing within the franchise agreement or any related document is intended to disclaim the representations made by Alloy in the FDD. This provision aims to ensure that franchisees can rely on the information provided in the FDD when making their investment decisions.
Additionally, for franchisees in certain states like California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin, a rider is added to the franchise agreement. This rider explicitly states that no signed statement 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 strengthens the franchisee's ability to hold Alloy accountable for the information provided during the franchise sales process.
Furthermore, the Alloy FDD includes a receipt that the prospective franchisee must sign, acknowledging they have received and understood the FDD. This receipt also outlines the required timeframe for providing the FDD before signing any binding agreements or making payments. It also informs the prospective franchisee of their rights to report any false, misleading, or omitted information to the Federal Trade Commission and the appropriate state agency. This receipt serves as a formal acknowledgment of the franchisee's access to the disclosure document and its contents.
Finally, the Alloy FDD includes a questionnaire that asks prospective franchisees to confirm their understanding that the Franchise Agreement and Disclosure Document contain the entire agreement between them and Alloy concerning the franchise. They must acknowledge that any prior oral or written statements not set out in those documents will not be binding. This reinforces the importance of the FDD and Franchise Agreement as the primary sources of information and obligations for both parties.