What happens if a person becomes an owner of an Alloy franchise after the date of the Franchise Agreement?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
- D. "Owner" means any person or entity who, now or hereafter, directly or indirectly owns an interest in the franchisee when the franchisee is a corporation, limited liability company, or a similar entity other than a partnership entity. If the franchisee is a partnership entity, then each general partner is an Owner, regardless of the percentage of ownership interest. If the franchisee is one or more individuals, each individual is an Owner of the franchisee. Your Owner(s) are identified on the Data Sheet. Every time there is a change in the persons who are your Owners, you must, within 10 days from the date of each such change, update the Data Sheet. As used in this Agreement, any reference to Owner includes all Owners. You must designate in the Data Sheet one of your Owners as your Operating Partner. Your Operating Partner will be our primary contact for your Business, and we may communicate with and rely on the decisions made by your Operating Partner.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, if there is a change in the persons who are your Owners, you must update the Data Sheet within 10 days from the date of each such change. The FDD defines an "Owner" as any person or entity who directly or indirectly owns an interest in the franchisee when the franchisee is a corporation, limited liability company, or a similar entity other than a partnership entity. If the franchisee is a partnership entity, then each general partner is an Owner, regardless of the percentage of ownership interest. If the franchisee is one or more individuals, each individual is an Owner of the franchisee.
The Data Sheet identifies the Owner(s), and any reference to Owner includes all Owners. Alloy requires that you designate one of your Owners as your Operating Partner. Alloy will use your Operating Partner as their primary contact for your Business, and they may communicate with and rely on the decisions made by your Operating Partner.
It is important for prospective franchisees to understand these requirements regarding ownership changes, as failing to update the Data Sheet within the specified timeframe could potentially lead to breaches of the franchise agreement. Franchisees should maintain accurate records of ownership and promptly notify Alloy of any changes to ensure compliance and maintain a good working relationship with the franchisor.