What must an Alloy franchisee do with their remaining interest in the facility lease upon demand after termination or expiration of the franchise agreement?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
- D. Except as specifically permitted under any then-effective Franchise Agreement, you must assign to us or our designee all your right, title, and interest in and to your telephone numbers and must notify the telephone company and all listing agencies of the termination or expiration of your right to use any telephone number in any regular, classified or other telephone directory listing associated with the Trademarks and to authorize transfer of same at our direction.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, the franchisee must assign to Alloy or its designee all rights, title, and interest in the telephone numbers associated with the business. The franchisee is also required to notify the telephone company and listing agencies about the termination or expiration of their right to use any telephone number listed in connection with Alloy's trademarks. This notification must authorize the transfer of the telephone numbers as directed by Alloy.
This requirement ensures that Alloy maintains control over its brand identity and customer communications even after a franchise agreement ends. By assigning the telephone numbers, Alloy can seamlessly redirect customer inquiries to other locations or franchisees, preserving brand continuity. The franchisee must comply with these obligations within 30 days of the termination or expiration of the agreement.
Failure to comply with these post-termination obligations could result in legal action or other penalties. It is important for prospective franchisees to understand these requirements and factor them into their business planning. Franchisees should also consult with legal counsel to ensure they fully understand their obligations upon termination or expiration of the franchise agreement.