What happens if an Alloy franchisee does not cure a default?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Termination by Us. We have the right to terminate this Agreement in accordance with the following provisions:
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- Termination After Opportunity to Cure. Except as otherwise provided in this subparagraph 13.B or elsewhere in the Agreement: (i) you will have 30 days from the date of our issuance of a written notice of default to cure any default under this Agreement, other than a failure to pay amounts due or submit required reports, in which case you will have 10 days to cure those defaults; (ii) your failure to cure a default within the 30-day or 10-day period will provide us with good cause to terminate this
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Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, Alloy has the right to terminate the franchise agreement if a franchisee fails to cure a default after receiving written notice. The franchisee typically has 30 days to correct the default, but only 10 days are given to cure defaults related to failure to pay amounts due or submit required reports.
This means that if an Alloy franchisee violates the terms of their agreement, such as failing to meet performance standards or maintain the required brand image, they will receive a formal notice from Alloy outlining the issue and the steps needed to resolve it. The franchisee must act quickly to address the problem within the specified timeframe.
The distinction between 30-day and 10-day cure periods highlights the importance Alloy places on financial and reporting obligations. Failure to pay or submit reports is treated more seriously, requiring a faster response. If the franchisee does not take the necessary steps to fix the default within the allotted time, Alloy has grounds to terminate the franchise agreement, which would result in the franchisee losing their rights to operate under the Alloy brand.