Does the Alloy franchise agreement allow for different 'PRINCIPAL' acknowledgements based on the franchisee's business structure?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
Schedule E to the Franchise Agreement
ACKNOWLEDGMENT ADDENDUM TO ALLOY FRANCHISE AGREEMENT
THIS ACKNOWLEDGEMENT ADDENDUM DOES NOT APPLY TO CANDIDATES LOCATED IN OR BUSINESSES TO BE LOCATED IN ANY OF THE FOLLOWING FRANCHISE REGISTRATION STATES: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI.
As you know, you and we are entering into a Franchise
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to the 2025 Alloy Franchise Disclosure Document, the Acknowledgment Addendum to the Alloy Franchise Agreement does not apply to candidates located in or businesses to be located in specific franchise registration states. These states include California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.
For franchisees located outside of these specified states, the FDD includes an Acknowledgment Addendum. This addendum likely contains acknowledgements tailored to the franchisee. However, the excerpt does not specify whether these acknowledgements differ based on the franchisee's business structure (e.g., sole proprietorship, partnership, LLC, corporation). The document confirms that the franchisee and Alloy are entering into a franchise agreement.
Prospective franchisees should carefully review the Acknowledgment Addendum (if applicable based on their location) and consult with Alloy to understand whether the acknowledgements vary depending on the franchisee's business structure. This will ensure that all parties are clear on their roles, responsibilities, and obligations under the franchise agreement.