For an Alloy franchise, what is the cumulative number of facilities required to be open and continuously operating as of the date the franchise agreement is signed?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
consent to the site of your Facility, a separate Franchise Agreement must be executed for each such Facility. Upon the execution of each Franchise Agreement, the terms and conditions of the Franchise Agreement
control the establishment and operation of such Facility. You must execute the Franchise Agreement for the first Facility to be developed hereunder simultaneously with the execution of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to the 2025 Alloy Franchise Disclosure Document, franchisees must execute a Franchise Agreement for the first facility to be developed simultaneously with the execution of the Development Agreement. The FDD states that franchisees must comply with the Development Schedule requirements regarding the opening date for each facility and the cumulative number of facilities to be open and continuously operating for business in the Development Territory.
This means that as of the date the franchise agreement is signed, the franchisee is expected to have at least one Alloy facility planned and in the process of being established. The Development Schedule will outline the specific dates and requirements for opening additional facilities within the designated territory.
Prospective franchisees should carefully review the Development Schedule in the Franchise Agreement to understand the specific obligations for opening and operating Alloy facilities. Failure to meet these requirements could result in termination of the agreement. It is important to consider the financial and operational implications of adhering to the Development Schedule before signing the agreement.