Is an Alloy franchisee responsible for leasing a site that meets Alloy's site selection guidelines?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Facility; Site Under Control. You are responsible for leasing a site that meets our site selection guidelines. We must consent to the site in writing. You may not use the Facility
premises for any purpose other than the operation of an ALLOY Facility during the term of this Agreement or any Interim Period. We make no guarantees concerning the success of the Facility located on any site to which we consent.
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, franchisees are indeed responsible for securing a site that aligns with Alloy's site selection guidelines. Alloy must provide written consent to the chosen site. The franchisee is prohibited from using the facility premises for any purpose other than operating an Alloy facility during the franchise agreement's term or any interim period. Alloy offers no guarantees regarding the success of the facility at any consented site.
Furthermore, the franchisee cannot open the Alloy facility for business until Alloy provides written notification that all pre-opening obligations have been met and consents to the opening date. Alloy is not liable for any pre-opening obligations, losses, or expenses incurred by the franchisee due to non-compliance with these obligations or failure to open by a specific date.
This arrangement is typical in franchising, where franchisees bear the responsibility for finding and leasing a suitable location, while the franchisor sets the standards to ensure brand consistency and operational effectiveness. Prospective Alloy franchisees should carefully review Alloy's site selection guidelines and pre-opening obligations to understand the full scope of their responsibilities and potential costs.