Does the Alloy franchise agreement specify who is authorized to complete the 'ACKNOWLEDGEMENT OF PRINCIPAL' section?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
ACKNOWLEDGMENT ADDENDUM TO ALLOY FRANCHISE AGREEMENT
THIS ACKNOWLEDGEMENT ADDENDUM DOES NOT APPLY TO CANDIDATES LOCATED IN OR BUSINESSES TO BE LOCATED IN ANY OF THE FOLLOWING FRANCHISE REGISTRATION STATES: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI.
As you know, you and we are entering into a Franchise Agreement for the operation of an ALLOY franchise. Please review each of the following questions carefully and provide honest responses to each question.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, Schedule E of the Franchise Agreement includes an Acknowledgment Addendum. This addendum requires prospective franchisees to review and answer questions honestly before entering into a franchise agreement with Alloy. However, the document does not specify who is authorized to complete the 'ACKNOWLEDGEMENT OF PRINCIPAL' section.
Notably, the Acknowledgment Addendum does not apply to candidates or businesses located in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin. For franchisees in Illinois, the FDD states that the Acknowledgment Addendum attached to the Area Development Agreement is unenforceable under Illinois law because it may force a franchisee to waive rights under the Illinois Franchise Disclosure Act.
Prospective franchisees should clarify with Alloy who is authorized to complete the Acknowledgment Addendum and what the implications are for franchisees in states where the addendum does not apply or is unenforceable.