What must an Alloy franchisee do if their Facility fails to be rated in the highest health and sanitary classification?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
E. Health and Sanitation. Your Facility must be operated and maintained at all times in compliance with any and all applicable health and sanitary standards prescribed by governmental authority. You also must comply with any standards that we prescribe. In addition to complying with such standards, if the Facility is subject to any sanitary or health inspection by any governmental authorities under which it may be rated in one or more than one classification, it must be maintained and operated so as to be rated in the highest available health and sanitary classification with respect to each governmental agency inspecting the same. In the event you fail to be rated in the highest classification or receive any notice that you are not in compliance with all applicable health and sanitary standards, you must immediately notify us of such failure or noncompliance.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, franchisees must operate and maintain their facilities in compliance with all applicable health and sanitary standards set by governmental authorities and any standards prescribed by Alloy. If a facility is subject to health inspections and can be rated in classifications, it must be maintained and operated to achieve the highest available health and sanitary classification from each inspecting governmental agency.
If an Alloy franchisee fails to be rated in the highest classification or receives notice of non-compliance with health and sanitary standards, they must immediately notify Alloy of the failure or non-compliance. Failing an inspection constitutes a default under Section 13.A of the Franchise Agreement.
Furthermore, if Alloy determines that a condition in the facility poses a threat to customers or public health and safety, Alloy may take necessary measures, including requiring the franchisee to immediately close the facility until the situation is remedied to Alloy's satisfaction. This highlights the importance of maintaining high health and safety standards to avoid potential business interruptions and maintain compliance with the franchise agreement.