Does the Alloy franchise agreement specify that the Owner must execute a written modification?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
opened under the Development Schedule.
YOUR DUTIES
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- You must perform the following obligations:
- A. You must comply with all of the terms and conditions of each Franchise Agreement, including the operating requirements specified in each Franchise Agreement.
- B. You and your Owners, officers, directors, shareholders, partners, members and managers (if any) acknowledge that your entire knowledge of the operation of an ALLOY Facility and the System, including the knowledge or know-how regarding the specifications, standards and operating procedures of the services and activities, is derived from information we disclose to you and that certain information is proprietary, confidential and constitutes our trade secrets. The term "trade secrets" refers to the whole or any portion of know-how, knowledge, methods, specifications, processes, procedures and/or improvements regarding the business that is valuable and secret in the sense that it is not generally known to our competitors and any proprietary information contained in the Manuals or otherwise communicated to you in writing, verbally or through the Internet or other online or computer communications, and any other knowledge or knowhow concerning the methods of operation of the Facilities. You and your Owners, officers, directors, shareholders, partners, members and managers (if any), jointly and severally, agree that at all times during and after the term of this Agreement, you will maintain the absolute confidentiality of all such proprietary information and will not disclose, copy, reproduce, sell or use any such information in any other business or in any manner not specifically authorized or approved in advance in writing by us. We may require that you obtain nondisclosure and confidentiality agreements in a form satisfactory to us from the individuals identified in the first sentence of this paragraph and other key employees.
- C. You must comply with all requirements of federal, state and local laws, rules and regulations.
DEFAULT AND TERMINATION
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- The following provisions apply with respect to default and termination:
- A.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the Alloy franchise agreement does not explicitly state that the Owner must execute a written modification. However, the document does state that Alloy may require franchisees to obtain nondisclosure and confidentiality agreements in a form satisfactory to them from the individuals identified in the first sentence of this paragraph and other key employees.
Additionally, the Alloy FDD states that any agreement used in connection with a transfer will be subject to Alloy's prior written approval, which approval will not be withheld unreasonably. The franchisee must immediately notify Alloy of any proposed transfer and must submit promptly to Alloy the application for consent to transfer and any other required documents and information. Any attempted transfer by the franchisee without Alloy's prior written consent or otherwise not in compliance with the terms of this Agreement will be void.
While the Alloy franchise agreement may be modified from time to time, it is important to note that the franchisee must comply with all of the terms and conditions of each Franchise Agreement, including the operating requirements specified in each Franchise Agreement.