In the Alloy Franchise Agreement, what is required of all persons owning an interest in the Franchisee if the Franchisee is a corporation, limited liability company, partnership or other legal entity?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
- D. "Owner" means any person or entity who, now or hereafter, directly or indirectly owns an interest in the franchisee when the franchisee is a corporation, limited liability company, or a similar entity other than a partnership entity. If the franchisee is a partnership entity, then each general partner is an Owner, regardless of the percentage of ownership interest. If the franchisee is one or more individuals, each individual is an Owner of the franchisee. Your Owner(s) are identified on the Data Sheet. Every time there is a change in the persons who are your Owners, you must, within 10 days from the date of each such change, update the Data Sheet. As used in this Agreement, any reference to Owner includes all Owners. You must designate in the Data Sheet one of your Owners as your Operating Partner. Your Operating Partner will be our primary contact for your Business, and we may communicate with and rely on the decisions made by your Operating Partner.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, any person or entity who directly or indirectly owns an interest in the franchisee when the franchisee is a corporation, limited liability company, or similar entity other than a partnership entity is considered an "Owner". If the franchisee is a partnership entity, then each general partner is an Owner, regardless of the percentage of ownership interest. If the franchisee is one or more individuals, each individual is an Owner of the franchisee.
The Alloy franchise agreement requires you to identify all Owners on the Data Sheet. You must update the Data Sheet within 10 days of any change in the persons who are your Owners. Alloy considers any reference to Owner in the agreement to include all Owners.
Furthermore, you must designate one of your Owners as your Operating Partner on the Data Sheet. This Operating Partner will serve as Alloy's primary contact for your business, and Alloy may communicate with and rely on the decisions made by your Operating Partner.