Can an Alloy franchisee use trademarks not specified in the Manual without written direction?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not use, or permit the use of, any trademarks, trade names or service marks in connection with the Facility except those set forth in the Manual or except as we otherwise direct in writing.
You may use the Trademarks only in connection with such products and services as we specify and only in the form and manner we prescribe in writing.
You must comply with all trademark, trade name and service mark notice marking requirements.
You may use the Trademarks only in association with services and products approved by us and that meet our standards or requirements.
- C.
Facility Identification.
You must use the name ALLOY as the trade name of the Facility and you may not use any other mark or words to identify the Facility without our prior written consent.
You may not use any of the words ALLOY or any of the other Trademarks or any names or words that are substantially similar as part of the name of your corporation, partnership, limited liability company or other similar entity.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, an Alloy franchisee's use of trademarks is restricted to those specified in the Manual or as otherwise directed in writing by Alloy. This means franchisees cannot independently decide to use any trademarks, trade names, or service marks beyond what Alloy has explicitly approved in the Manual or through written instructions. This policy ensures brand consistency and quality control across all Alloy franchise locations.
This restriction is further emphasized by the requirement that the Alloy franchisee must use the name ALLOY as the trade name for their facility, and they cannot use any other mark or words to identify the facility without Alloy's prior written consent. Additionally, franchisees cannot incorporate the word ALLOY or any similar trademarks into the name of their business entity (corporation, partnership, etc.).
Alloy retains the right to modify the trademarks at any time, including requiring franchisees to cease using the ALLOY trademark and adopt a different one. Franchisees will receive written notice of any such changes and will have a reasonable period, not exceeding three months, to implement the required modifications. All costs associated with these changes, such as updating signage and marketing materials, are the franchisee's responsibility. This underscores the importance of franchisees staying aligned with Alloy's branding guidelines and being prepared for potential rebranding expenses.
In the event of any improper use or infringement of the trademarks by others, the franchisee must promptly notify Alloy. Alloy or its affiliate has the sole right to manage any legal proceedings related to the trademarks, including settlements. While Alloy has the right to take action against infringements, it is not obligated to do so. If a franchisee's use of the trademarks leads to litigation, the costs of defense will depend on whether the franchisee adhered to the franchise agreement; compliance means Alloy bears the costs, while non-compliance shifts the burden to the franchisee.