What happens if the 'ACKNOWLEDGEMENT OF PRINCIPAL' section is not properly filled out in the Alloy franchise agreement?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
ACKNOWLEDGMENT ADDENDUM TO ALLOY FRANCHISE AGREEMENT
THIS ACKNOWLEDGEMENT ADDENDUM DOES NOT APPLY TO CANDIDATES LOCATED IN OR BUSINESSES TO BE LOCATED IN ANY OF THE FOLLOWING FRANCHISE REGISTRATION STATES: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI.
As you know, you and we are entering into a Franchise Agreement for the operation of an ALLOY franchise. Please review each of the following questions carefully and provide honest responses to each question.
**Acknowledgments and Representations
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to the 2025 Alloy FDD, the 'Acknowledgment Addendum' does not apply to candidates or businesses located in franchise registration states such as California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.
For franchisees outside of those listed states, Alloy requires that franchisees review and honestly respond to each question in the Acknowledgment Addendum. The document serves as a confirmation that the franchisee understands they are entering into an agreement for an Alloy franchise and acknowledges certain aspects of the franchise relationship.
For franchisees in Illinois, the addendum attached to the Area Development Agreement is unenforceable because it may force a franchisee to waive or release certain rights under the Illinois Franchise Disclosure Act.