Will the Franchise Agreement signed for Franchised Businesses developed after the first one necessarily be the same as the one included with the Alloy Franchise Disclosure Document?

According to Alloy's 2025 Franchise Disclosure Document, if a franchisee enters into an Area Development Agreement to develop multiple Alloy Franchised Businesses, the Franchise Agreement signed for each business after the first one may not be the same as the agreement included in the Franchise Disclosure Document. The document states that for each Franchised Business developed after the initial one, the franchisee must sign Alloy's then-current form of Franchise Agreement. This agreement may differ from the one included with the Franchise Disclosure Document.

This means that the terms and conditions under which subsequent Alloy franchises operate could be subject to change. These changes could include modifications to fees, operational requirements, brand standards, or other aspects of the franchise agreement. It is important for prospective franchisees considering an Area Development Agreement to understand that the terms of their franchise agreement could evolve over time.

This is a fairly common practice in franchising, as franchisors often update their agreements to reflect changes in the market, legal requirements, or the franchisor's business model. Franchisees should carefully review the then-current form of the Franchise Agreement before developing each subsequent location to understand any changes and their potential impact on their business.