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In the Alloy franchise agreement receipt, what information is required for the Developer representative?

Alloy Franchise · 2025 FDD

Answer from 2025 FDD Document

site). We may conduct on-site evaluations, as we deem advisable, as part of our evaluation of the site for the Facility. We reserve the right to charge you our thencurrent site evaluation fee for each on-site evaluation we conduct. - 3. Your Submission of Information. You must furnish to us, at least 60 days prior to the earlier of (i) the date set forth in the Development Schedule by which you must execute a Franchise Agreement or (ii) the actual date on which the Franchise Agreement would be executed, a franchise application for the proposed Facility, financial statements and other information regarding you, the operation of any of your other Facilities within the Development Territory and the development and operation of the proposed Facility (including, without limitation, investment and financing plans for the proposed Facility) as we may reasonably require.

    1. Your Compliance with Our Then-Current Standards for Franchisees. You must receive written confirmation from us that you meet our then-current standards for franchisees, including financial capability criteria for the development of a new Facility. You acknowledge and agree that this requirement is necessary to ensure the proper development and operation of your Facilities, and to preserve and enhance the reputation and goodwill of all ALLOY facilities and the goodwill of the Trademarks. Our confirmation that you meet our then-current standards for the development of a new Facility, however, does not in any way constitute a guaranty by us as to your success.
    1. Good Standing.

Source: Item 23 — RECEIPTS (FDD pages 69–245)

What This Means (2025 FDD)

Based on the 2025 FDD, Alloy requires a developer to furnish several items at least 60 days before the earlier of the date in the Development Schedule for executing a Franchise Agreement or the actual execution date. This includes a franchise application for the proposed facility, financial statements, and other information regarding the developer. This information extends to the operation of any other facilities within the Development Territory and the development and operation of the proposed facility, including investment and financing plans.

Alloy also requires written confirmation that the developer meets their standards for franchisees, including financial capability criteria for developing a new facility. The FDD emphasizes that meeting these standards does not guarantee the franchisee's success. The developer must also be in good standing, meaning they are not in default of the Development Agreement, any Franchise Agreement, or any other agreement with Alloy or its affiliates.

Furthermore, the developer must have satisfied all monetary and other material obligations under the Franchise Agreements for all existing facilities on a timely basis. Finally, both the developer and Alloy must enter into Alloy's current form of Franchise Agreement for the proposed facility, which may be different from the current form and may include different and higher fees and obligations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.