Does the Alloy Franchise Agreement term consider the lease term for the Authorized Location?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
n subparagraph 15.P below and the Data Sheet and ends 10 years from the date of this Agreement, subject to any modifications in the Data Sheet to take into account the term of the lease for your Authorized Location.
- B. Renewal. You will have the option to renew your rights under this Agreement for one (1) renewal term of 10 years. We may grant you the option to enter into a renewal agreement for your Facility provided that with respect to the renewal agreement: (i) you have given us written notice of your intent to enter into a renewal agreement at least 6 months but not more than 12 months prior to the end of the expiring term; (ii) you sign our then-current form of franchise agreement (modified to reflect that the agreement relates to a renewal agreement), the terms of which may differ from this Agreement, including higher fees; (iii) you have complied with the provisions of subparagraph 5.E regarding modernization and you perform any further items of modernization and/or replacement of the building, premises, trade dress, equipment and grounds as may be necessary for your Facility to conform to the standards then applicable to new ALLOY facilities, regardless of the cost of such modernizations and/or replacements; (iv) you are not in default of this Agreement or any other agreement pertaining to the franchise granted, you have not been in default of this Agreement on three or more occasions during the term of this Agreement, regardless of whether any cure has been effectuated, have satisfied all monetary and material obligations on a timely basis during the term, and are in good standing; (v) if leasing the Facility premises, you have renewed the lease and have provided written proof of your ability to remain in possession of the premises throughout the renewal pe
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the lease term for the authorized location is considered within the Franchise Agreement, particularly in the context of renewal. Specifically, if a franchisee is leasing the Alloy facility premises, they must renew the lease and provide written proof of their ability to remain in possession of the premises throughout the renewal period to be eligible for a renewal agreement. The initial franchise agreement grants the right to operate a facility at a location identified on the Data Sheet, which must be designated within 90 days from the agreement date.
Alloy requires franchisees to secure a site that meets the franchisor's site selection guidelines, and the franchisor must provide written consent to the site. The franchisee cannot use the facility premises for any purpose other than operating an Alloy facility during the term of the agreement. The FDD states that if a facility is not "under control" within 180 days from the date of the agreement, Alloy may grant an extension or terminate the agreement.
This stipulation ensures that Alloy franchisees have secure tenure at their location for the duration of their franchise term, and any renewal thereof. This protects both the franchisee's investment and Alloy's brand integrity by ensuring continued operation at an approved site. The franchisee is responsible for maintaining control of the site, and failure to do so can impact their ability to renew the franchise agreement. This is a fairly standard practice in franchising, as the location is often critical to the success of the business.