Does Alloy generally own the premises and lease it to the franchisee?

According to Alloy's 2025 Franchise Disclosure Document, Alloy generally does not own the premises and lease it to the franchisee. Within 180 days after signing the Franchise Agreement, the franchisee must locate a site for their Franchised Business, obtain Alloy's acceptance of the proposed site, and enter into a lease, sublease, or purchase agreement for the approved site.

The franchisee may engage with Alloy's preferred real estate vendors to assist in the search for their Alloy site. The franchisee must submit the information and materials Alloy requires to allow them to review the proposed site. Alloy will consider factors such as the size and location of the premises, population in the immediate area and/or median household income, the lease terms for the premises, availability of parking and ease of access, types of businesses in close proximity to the premises, and competition from similar businesses.

Alloy has 30 days after receiving all required information concerning the proposed site to notify the franchisee whether the site is accepted or not. If Alloy does not provide specific acceptance of a location within this 30-day period, the location is deemed not accepted. Alloy's acceptance only indicates that the site meets their minimum criteria for a Facility. If the franchisee is unable to obtain possession of a suitable site for their Franchised Business by lease, sublease, or purchase agreement within six months after signing the Franchise Agreement, Alloy may provide an extension or terminate the Franchise Agreement. This same process is used for each Facility the franchisee is obligated to develop under an Area Development Agreement.