For Alloy franchises sold in South Dakota, what document is this addendum specifically amending?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
ADDENDUM TO THE FRANCHISE AGREEMENT REQUIRED FOR SOUTH DAKOTA FRANCHISEES
This Addendum pertains to franchises sold in the State of South Dakota and is for the purpose of complying with South Dakota statutes and regulations. Notwithstanding anything which may be contained in the body of the Franchise Agreement to the contrary, the Agreement is amended as follows:
- The following sentence is hereby added to the end of Section 9.A, Initial Franchise Fee:
Due to the financial condition of the Franchisor, the South Dakota Securities Regulation Office has required a financial assurance. Therefore, all initial fees and payments owed by franchisees to the franchisor under a franchise agreement shall be deferred until the franchisor completes its pre-opening obligations under the franchise agreement.
- Except as amended herein, the Franchise Agreement will be construed and enforced in accordance with its terms.
Each of the undersigned hereby acknowledges having read and understood this Addendum and consents to be bound by all of its terms.
FRANCHISOR: Alloy Personal Training, LLC FRANCHISEE:
ADDENDUM TO THE AREA DEVELOPMENT AGREEMENT REQUIRED FOR THE STATE OF SOUTH DAKOTA
This Addendum pertains to franchises sold in the State of South Dakota and is for the purpose of complying with South Dakota statutes and regulations. Notwithstanding anything which may be contained in the body of the Area Development Agreement to the contrary, the Agreement is amended as follows:
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to the 2025 FDD, Alloy provides two addenda for franchises sold in South Dakota: one for the Franchise Agreement and another for the Area Development Agreement.
The addendum to the Franchise Agreement modifies the original agreement to comply with South Dakota statutes and regulations. Specifically, it addresses the initial franchise fee, stating that due to Alloy's financial condition, the South Dakota Securities Regulation Office requires a financial assurance. As a result, all initial fees and payments owed by franchisees are deferred until Alloy completes its pre-opening obligations.
Similarly, the addendum to the Area Development Agreement ensures compliance with South Dakota regulations. It amends the agreement to defer development fees and initial payments from area developers until the first facility developed under the agreement opens, again due to the financial assurance required by the South Dakota Securities Regulation Office. Both addenda clarify that except as amended, the original agreements remain in full effect.