Does the Alloy franchise agreement prohibit franchisees from communicating with regulators?

According to Alloy's 2025 Franchise Disclosure Document, the franchise agreement cannot prohibit franchisees from communicating with regulators, at least in the state of Washington. Specifically, any provision in the franchise agreement or related agreements that prohibits the franchisee from communicating with or complaining to regulators is inconsistent with the express instructions in the Franchise Disclosure Document and is unlawful under RCW 19.100.180(2)(h). This protection ensures that franchisees can freely report concerns or violations to the appropriate regulatory bodies without fear of reprisal from Alloy.

This clause is included in the addendum for franchisees in the State of Washington. It is important for prospective franchisees to understand their rights and obligations under the franchise agreement, particularly concerning regulatory compliance and communication. This protection aligns with franchise regulations in many states that aim to prevent franchisors from suppressing franchisee communication with regulatory agencies.

For prospective Alloy franchisees, this means that the franchise agreement cannot legally prevent them from reporting issues or concerns to regulatory bodies. This protection is particularly relevant in heavily regulated industries where compliance is critical. Franchisees should carefully review the franchise agreement and any addenda to understand their rights and ensure that the agreement complies with all applicable state and federal laws. If a prospective franchisee is considering opening an Alloy franchise in a state other than Washington, they should confirm whether similar protections exist in that state.