What happens if an Alloy franchisee fails to locate a site within 180 days?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
We grant to you the right and license to establish and operate a Facility identified by the ALLOY Trademarks or such other marks as we may direct, at the location identified on the Data Sheet, which location must be designated within 90 days from the date of this Agreement (the "Authorized Location"). The Authorized Location must be located within the area defined in the Data Sheet as the "Designated Area." When a location has been designated by you and approved by us, it will become part of this subparagraph 2.A as if originally stated. If a Facility is not "under control" within 180 days from the date of this Agreement (as defined in subparagraph 5.A), we may grant you an extension of time to locate a Facility or terminate this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, a franchisee is granted the right to establish and operate a facility at a location identified on the Data Sheet, which must be designated within 90 days of the Franchise Agreement. This location is referred to as the "Authorized Location" and must be within the "Designated Area" as defined in the Data Sheet.
If the Alloy franchisee does not have the facility "under control" within 180 days from the date of the Franchise Agreement, Alloy has the option to grant an extension to locate a facility or terminate the agreement. The FDD does not define "under control."
This clause is significant for potential Alloy franchisees as it sets a firm timeline for securing a location. Failure to meet this deadline could result in the termination of the Franchise Agreement, potentially leading to a loss of the initial franchise fee and any expenses incurred in the initial stages of setting up the franchise. It is important for prospective franchisees to understand the site selection criteria and the process for obtaining Alloy's approval to avoid delays and ensure compliance with the agreement.