Must the Alloy franchisee receive written consent to their opening date before opening their Facility for business?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not open your Facility for business until we have notified you in writing that you have satisfied your pre-opening obligations as set forth in subparagraphs 5.A and 5.B and we have consented to your opening date. We are not responsible or liable for any of your pre-opening obligations, losses or expenses you might incur for your failure to comply with these obligations or your failure to open by a particular date. We also are entitled to injunctive relief or specific performance under subparagraph 12.C for your failure to comply with your obligations.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, a franchisee must receive written consent to their opening date before opening their facility for business. Specifically, the franchisee may not open their Alloy facility until Alloy has notified them in writing that they have satisfied their pre-opening obligations and Alloy has consented to the opening date. Alloy states they are not responsible or liable for any pre-opening obligations, losses, or expenses incurred if the franchisee fails to comply with these obligations or fails to open by a particular date.
This requirement ensures that the Alloy facility meets the brand's standards before commencing operations. It protects the uniformity, goodwill, and reputation of the Alloy brand. The franchisee is responsible for leasing a site that meets Alloy's site selection guidelines, and Alloy must consent to the site in writing.
Failure to comply with pre-opening obligations or opening without Alloy's consent can lead to legal repercussions. Alloy is entitled to injunctive relief or specific performance if the franchisee fails to comply with their obligations. This underscores the importance of adhering to Alloy's guidelines and obtaining written consent before opening the facility.