Can an Alloy franchisee directly solicit customers outside of their Designated Territory?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not restrict the customers you may serve, as you may sell products and services to customers who live anywhere but who choose to use your Facility. We, however, may place restrictions on your promotional activities, whether directly or indirectly, through or on the internet, the world wide web, or any other similar proprietary or common carrier electronic delivery system; through catalogs or other mail order devices sent or directed to customers or prospective customers located anywhere; or by telecopy or other telephonic or electronic communications, including toll-free numbers, directed to or received from customers or prospective customers located anywhere. While you may place advertisements in printed media, online (Internet) and on television and radio that are targeted to customers and prospective customers located within your Designated Territory, and you will not be deemed to be in violation of the Franchise Agreement if those advertisements, because of the natural circulation of the printed media or reach of online (Internet), television and radio, are viewed by prospective customers outside of your Designated Territory, you may not directly solicit customers outside of your Designated Territory.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 50–51)
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 territory. However, Alloy franchisees are allowed to serve customers who live anywhere, as long as those customers choose to use their specific Alloy facility.
While Alloy places restrictions on promotional activities directed towards customers outside the designated territory, franchisees are permitted to place advertisements in printed media, online, and on television and radio that may be viewed by prospective customers outside of their designated territory due to the natural reach of those advertising channels. This allowance does not constitute a violation of the Franchise Agreement as long as the franchisee is not directly soliciting those customers.
Alloy and its affiliates retain the right to sell products or offer services under the Proprietary Marks both within and outside a franchisee's Designated Territory through methods other than a dedicated Alloy Facility, such as internet sales, catalog sales, telemarketing, or other direct marketing sales. Franchisees are prohibited from using these alternative distribution channels to make sales outside or inside their Designated Territory and will not receive compensation for sales made through these channels.