Is an Alloy franchisee allowed to directly solicit customers outside their Designated Area?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
The license granted to you does not include (i) any right to offer, sell or otherwise provide services or products outside the Facility, unless we authorize in writing, (ii) any right to offer, sell or otherwise provide services or products through any other channels or methods of distribution, including the Internet (or any other existing or future form of electronic commerce), (iii) any right to offer, sell or otherwise provide services or products identified by the Trademarks to any person or entity for resale or further distribution, or (iv) any right to exclude, control or impose conditions on our development of future franchised, company or affiliate owned facilities at any time or at any location regardless of the proximity to your Facility. As of the Effective Date, there are no restrictions or limitations from where client business may be generated, although you may not directly solicit customers outside your Designated Area. We may establish from time to time written guidelines regarding the territorial scope of your marketing activities. You agree to comply with any such guidelines.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, franchisees are generally restricted from directly soliciting customers outside of their designated area. The FDD states that while there are no restrictions on where client business may be generated, franchisees are explicitly prohibited from directly soliciting customers outside their Designated Area. However, Alloy may establish written guidelines regarding the territorial scope of a franchisee's marketing activities, and the franchisee must comply with these guidelines.
This restriction means that Alloy franchisees need to focus their direct marketing and sales efforts within their designated territory. While they can still serve clients from outside the area, they cannot actively target or solicit those customers directly. This could impact a franchisee's marketing strategy and potentially limit their customer base, especially in areas near the boundary of their designated area.
It is important for prospective Alloy franchisees to understand the specific boundaries of their Designated Area and any guidelines Alloy establishes regarding marketing activities. Franchisees should discuss with Alloy what marketing strategies are permissible to reach customers outside of their designated area without directly soliciting them. Understanding these limitations is crucial for developing an effective marketing plan and achieving business goals.