Does the Alloy franchise agreement allow for oral waivers of its provisions?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
No waiver by us of any breach by you, nor any delay or failure by us to enforce any provision of this Agreement, may be deemed to be a waiver of any other or subsequent breach or be deemed an estoppel to enforce our rights with respect to that or any other or subsequent breach. Subject to our rights to modify the Schedules and/or standards and as otherwise provided herein, this Agreement may not be waived, altered or rescinded, in whole or in part, except by a writing signed by you and us.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the franchise agreement stipulates that waivers, alterations, or rescissions must be in writing and signed by both the franchisee and Alloy. This means that any verbal agreements or understandings that contradict the written terms of the franchise agreement are not binding. This provision aims to provide clarity and prevent disputes based on informal or undocumented agreements.
This requirement for written waivers is a common practice in franchising to ensure that all parties are clear about their rights and obligations. It reduces the risk of misunderstandings or disagreements that could arise from relying on oral statements. For a prospective Alloy franchisee, this means that any changes to the franchise agreement or any waivers of its provisions must be documented in writing to be enforceable.
However, for franchisees in certain states like Maryland and those listed in the Rider to State Addendum, there are specific stipulations that protect franchisees from unknowingly waiving rights under state franchise laws. These stipulations ensure that no statement or acknowledgment signed by a franchisee can waive claims under applicable state franchise law or disclaim reliance on statements made by Alloy. This provides an additional layer of protection for franchisees in those states, ensuring that they cannot inadvertently give up their legal rights through standard form documents.