For an Alloy franchise, what is the cumulative number of facilities required to be open and continuously operating for business in the Development Territory as of the date Facility Number 3's Franchise Agreement is signed?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
| Facility Number | Date by Which Franchise Agreement Must be Signed | Date by Which the Facility Must be Opened and Continuously Operating for Business in the Territory | Cumulative number of Facilities Required to be Open and Continuously Operating for Business in the Development Territory as of the Date in Preceding Column |
|---|---|---|---|
| 1 | Date of this Agreement | Within 1 year of Effective Date | 1 |
| 2 | Within 1 year of signing this Agreement | Within 2 years of signing this Agreement | 2 |
| 3 | Within 2 years of signing this Agreement | Within 3 years of signing this Agreement | 3 |
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, a development schedule outlines the franchisee's obligations regarding the opening of Alloy facilities. The development schedule specifies the dates by which franchise agreements must be signed and the dates by which each facility must be open and continuously operating. It also specifies the cumulative number of facilities required to be open and operating in the development territory as of the date in the preceding column.
Specifically, as of the date the Franchise Agreement for Facility Number 3 is signed, the cumulative number of Alloy facilities required to be open and continuously operating in the Development Territory is 3. This means that the franchisee is expected to have the first two facilities already up and running before the agreement for the third facility is signed.
This requirement is part of the broader development schedule that Alloy franchisees must adhere to. Failing to meet these deadlines can result in the termination of the development agreement. Therefore, prospective Alloy franchisees should carefully review the development schedule and ensure they have the resources and capabilities to meet these obligations.