For an Alloy franchise, what is the deadline for signing the franchise agreement for the third facility?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
site). We may conduct on-site evaluations, as we deem advisable, as part of our evaluation of the site for the Facility. We reserve the right to charge you our thencurrent site evaluation fee for each on-site evaluation we conduct. - 3. Your Submission of Information. You must furnish to us, at least 60 days prior to the earlier of (i) the date set forth in the Development Schedule by which you must execute a Franchise Agreement or (ii) the actual date on which the Franchise Agreement would be executed, a franchise application for the proposed Facility, financial statements and other information regarding you, the operation of any of your other Facilities within the Development Territory and the development and operation of the proposed Facility (including, without limitation, investment and financing plans for the proposed Facility) as we may reasonably require.
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- Your Compliance with Our Then-Current Standards for Franchisees. You must receive written confirmation from us that you meet our then-current standards for franchisees, including financial capability criteria for the development of a new Facility. You acknowledge and agree that this requirement is necessary to ensure the proper development and operation of your Facilities, and to preserve and enhance the reputation and goodwill of all ALLOY facilities and the goodwill of the Trademarks. Our confirmation that you meet our then-current standards for the development of a new Facility, however, does not in any way constitute a guaranty by us as to your success.
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- Good Standing. You must not be in default of this Agreement, any Franchise Agreement entered into pursuant to this Agreement or any other agreement between you or any of your affiliates and us or any of our affiliates.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the deadline for signing the franchise agreement for the third facility is determined by the Development Schedule. The franchisee must furnish Alloy with a franchise application, financial statements, and other required information at least 60 days prior to the date set forth in the Development Schedule for executing the Franchise Agreement, or 60 days prior to the actual execution date, whichever comes first.
Alloy requires franchisees to meet their current standards, including financial capability, before developing a new facility. This ensures the proper development and operation of Alloy facilities and maintains the brand's reputation. However, Alloy's confirmation that a franchisee meets these standards does not guarantee success.
Time is of the essence for developing each facility according to the Development Schedule. Each facility must be developed and operated under a separate Franchise Agreement. If the franchisee complies with the Development Schedule, Alloy will not develop or franchise another Alloy facility in the Development Territory until the earliest of (i) the expiration or termination of the agreement, (ii) the date the Franchise Agreement for the last facility must be executed, or (iii) the date the Authorized Location for the final facility is determined. At the time of executing the final Franchise Agreement, the franchisee must have an Authorized Location for that facility.
Prospective franchisees should carefully review the Development Schedule in the Franchise Agreement and ensure they can meet all deadlines and requirements for developing each facility. They should also be prepared to provide all necessary information to Alloy in a timely manner and meet Alloy's standards for franchisees.