What happens if an Alloy developer is not in good standing?

According to Alloy's 2025 Franchise Disclosure Document, a developer must be in good standing to maintain their development rights. To be considered in good standing, the developer must not be in default of the Development Agreement, any Franchise Agreement entered into, or any other agreement with Alloy or its affiliates. Additionally, the developer must have satisfied all monetary and other material obligations under the Franchise Agreements for all existing Alloy facilities on a timely basis.

If the Alloy developer fails to meet these good standing requirements, Alloy can terminate the Development Agreement, which means all rights granted to the developer are automatically terminated and revoked. The developer will not be entitled to any refund of fees and loses the right to develop or operate any business for which a Franchise Agreement has not been executed. Alloy then has the right to develop and operate, or franchise others to develop and operate, Alloy facilities in the Development Territory.

Upon termination, the developer must immediately cease operating under the Development Agreement and cannot represent themselves as a current or former Alloy developer, except for business operations of existing facilities operating under a valid Franchise Agreement. The developer must also cancel or assign to Alloy any assumed name registrations containing the Alloy name or trademarks and assign their telephone numbers to Alloy. Finally, the developer must pay all sums owed to Alloy and its affiliates within 30 days of termination or expiration.