What must an Alloy franchisee do for each Facility to be established within the Development Territory?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
r lease obligations for the proposed 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. You also must have satisfied, on a timely basis, all monetary and other material obligations under the Franchise Agreements for all of your existing Facilities.
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- Execution of Franchise Agreement. You and we must enter into our thencurrent form of Franchise Agreement for the proposed Facility. You understand that we may modify the then-current form of Franchise Agreement from time to time and that it may be different from the current form of Franchise Agreement, including imposing different and higher fees and obligations. You understand and agree that any and all Franchise Agreements will be construed and will exist independently of this Agreement. The continued existence of each Franchise Agreement will be determined by the terms and conditions of such Franchise Agreement. Except as specifically set forth in this Agreement, the establishment and operation of each Facility must be in accordance with the terms of the applicable Franchise Agreement.
- C. You must construct and equip each Facility in strict accordance with our thencurrent approved specifications and standards pertaining to equipment, inventory, signage, fixtures, design and layout of the building. You may not commence construction on any Facility until you have received our written consent to your building plans.
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Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, a franchisee with development rights must meet several requirements to establish each Alloy facility within their designated development territory. The franchisee must submit a separate application for each facility. At least 60 days before executing a Franchise Agreement or by the date in the Development Schedule, the franchisee must provide Alloy with a franchise application, financial statements, and other information about themselves, their existing facilities, and the proposed facility. This includes investment and financing plans. Alloy must provide written confirmation that the franchisee meets their current standards, including financial capability criteria. The franchisee must not be in default of any agreements with Alloy or its affiliates and must have satisfied all obligations under existing Franchise Agreements.
Furthermore, the franchisee and Alloy must enter into the then-current form of Franchise Agreement for the proposed facility. The franchisee is obligated to construct and equip each facility in strict accordance with Alloy's approved specifications and standards for equipment, inventory, signage, fixtures, design, and layout. Construction cannot begin until Alloy provides written consent to the building plans. 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.
These requirements ensure that each Alloy facility meets the brand's standards and protects its reputation. The franchisee bears the risk of increased investment and operating capital requirements for future facilities. The franchisee's success depends on their efforts, management, and employees. Alloy retains the right to modify the Franchise Agreement, potentially imposing different or higher fees and obligations. The franchisee must adhere to the Development Schedule, as failure to do so can result in termination of the Development Agreement.