What is the Alloy franchisee responsible for regarding the site selection guidelines?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
protect the distinction, goodwill and uniformity symbolized by the Trademarks and the System. Accordingly, you agree to maintain and comply with our quality standards and agree to the following terms and conditions:
- 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.
You and your landlord must sign the Lease Addendum attached as Schedule B. We recommend you submit the Lease Addendum to the landlord at the beginning of your lease review and negotiation, although the terms of the Lease Addendum may not be negotiated without our prior approval. If the landlord requires us to negotiate the Lease Addendum, we reserve the right to charge you a fee, which will not exceed our actual costs associated with the negotiation. You must provide us a copy of the executed lease and Lease Addendum within 5 days of its execution. We have no responsibility for the lease; it is your sole responsibility to evaluate, negotiate and enter into the lease for the Facility premises.
You must execute, and provide us an executed copy of your lease (including an executed copy of the Lease Addendum) or the purchase agreement for the selected and approved site for your Facility within 180 days from the date of execution of this Agreement. If you fail to have your "site under control" (you and we agree on a site and you execute a lease or purchase agreement for the site) within 180 days after the date of execution of this Agreement, we will have the right to terminate this Agreement without opportunity to cure pursuant to subparagraph 13.B.2.
B. Construction; Future Alteration. You must construct and equip the Facility in strict accordance with our current approved specifications and standards pertaining to equipment, signage, fixtures, furnishings, and design and layout of the building. You may not commence construction of the Facility until you have received our written consent to your layout plans.
Without limiting the generality of the prior paragraph, you must promptly after obtaining possession of the site for the Facility: (i) contact and retain our designated construction manager or an architect that meets our approval and have prepared and submitted for our approval a site survey and basic architectural plans and specifications consistent with our general buildout, image, color scheme and décor requirements as set forth in the Manuals for an ALLOY Facility (including requirements for dimensions, exterior design, materials, interior design and layout, equipment, fixtures, furniture and signage); (ii) purchase or lease and then, in the construction of the Facility, use only the approved building materials, equipment, fixtures, audio visual equipment, furniture and signage;
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the franchisee is responsible for leasing a site that meets Alloy's site selection guidelines. Alloy's written consent to the site is required. The franchisee cannot use the facility premises for any purpose other than operating an Alloy facility during the term of the agreement or any interim period. Alloy offers no guarantees concerning the success of the facility at any site to which they consent.
The franchisee may not open their Alloy facility for business until Alloy has provided written notification that the franchisee has satisfied their pre-opening obligations and Alloy has consented to the opening date. Alloy is not responsible or liable for any pre-opening obligations, losses, or expenses incurred by the franchisee for failure to comply with these obligations or failure to open by a particular date. Alloy is entitled to injunctive relief or specific performance if the franchisee fails to comply with their obligations.
Furthermore, the franchisee must designate a location within 90 days from the date of the agreement, referred to as the "Authorized Location," which must be within the area defined in the Data Sheet as the "Designated Area." If the facility is not "under control" within 180 days from the date of the agreement, Alloy may grant an extension or terminate the agreement. The franchisee also agrees that the facility will be open and operating within six months after signing a lease or 12 months after signing the agreement, whichever occurs first, unless Alloy authorizes an extension in writing.
Before opening, the franchisee must comply with all requirements regarding site selection and construction, ensure the facility is constructed, decorated, furnished, equipped, and stocked according to Alloy's approved plans and specifications, complete the initial training program to Alloy's satisfaction, pay all initial fees and amounts due, furnish all required insurance certificates, obtain all necessary governmental permits, licenses, and authorizations, be in full compliance with all terms of the agreement, and have 75 members who have joined during the pre-sale marketing campaign, including a signed membership agreement and a verified credit card on file.