Does the Alloy franchise agreement specify the consequences of failing to provide the 'ACKNOWLEDGEMENT OF PRINCIPAL' information?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
Schedule E to the Franchise Agreement
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.
**Acknowledgments and Representations
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
Based on the 2025 Alloy Franchise Disclosure Document, Schedule E includes an Acknowledgment Addendum to the Alloy Franchise Agreement. This addendum requires franchisees to review and respond honestly to a series of questions. However, the document does not explicitly state the consequences of failing to provide the 'ACKNOWLEDGEMENT OF PRINCIPAL' information.
While the FDD does not detail specific penalties for failing to provide the acknowledgment, it does state that franchisees must comply with all terms and conditions of the Franchise Agreement. Failure to comply with the agreement could potentially lead to default and termination, as outlined in Item 23.
Prospective Alloy franchisees should seek clarification from the franchisor regarding the specific ramifications of not providing the 'ACKNOWLEDGEMENT OF PRINCIPAL' information. Understanding the potential consequences will help ensure full compliance with the franchise agreement and avoid any potential disputes or penalties.