What must an Alloy franchisee do if they receive notice that they are not in compliance with all applicable health and sanitary standards?
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 Alloy prescribes. Furthermore, if the facility is subject to health inspections and ratings, it must aim for the highest available health and sanitary classification from each inspecting governmental agency.
If an Alloy franchisee fails to achieve the highest health and sanitary classification or receives notice of non-compliance with health and sanitary standards, they must immediately notify Alloy of such failure or non-compliance. This immediate notification is crucial for Alloy to be aware of any potential issues and to work with the franchisee to rectify the situation promptly.
Failure to comply with health and sanitary standards can lead to serious consequences, as any failure of an inspection is considered a default under Section 13.A of the Franchise Agreement. Additionally, if Alloy determines that a condition in the facility poses a threat to customers or public health and safety, Alloy has the right to take necessary measures, including requiring the franchisee to immediately close the facility until the situation is remedied to Alloy's satisfaction. This underscores the importance of maintaining high standards of health and sanitation to protect the brand's reputation and ensure customer safety.