What happens if Alloy does not provide specific acceptance of a location within the specified timeframe?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
We will have 30 days after receiving all information we require concerning the proposed site to notify you whether the site is accepted or not. If we do not provide our specific acceptance of a location within this 30 day period, the location is deemed not accepted. Our acceptance only indicates that the site meets our minimum criteria for a Facility. If you are unable to obtain possession of a suitable site for your Franchised Business by lease, sublease or purchase agreement within six months after you sign the Franchise Agreement, we may provide you with an extension of this timeframe or we may terminate your Franchise Agreement. We utilize this same process for each Facility you are obligated to develop under an Area Development Agreement.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 31–42)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, if Alloy does not provide specific acceptance of a proposed site within 30 days after receiving all required information, the location is automatically considered not accepted. This means the franchisee must continue searching for an alternative location that meets Alloy's criteria.
This stipulation places a responsibility on Alloy to promptly review and respond to proposed locations. For the franchisee, it's crucial to submit all required information in a timely and organized manner to ensure Alloy has everything needed for their assessment. The 30-day timeframe starts only when Alloy has received all necessary information, so delays in submission can prolong the site selection process.
Furthermore, the document states that Alloy's acceptance of a site only indicates that it meets the minimum criteria for a facility. It does not guarantee success or profitability at that location. The franchisee still bears the risk of the location's suitability for their business. If a franchisee cannot secure a suitable site within six months of signing the Franchise Agreement, Alloy may either grant an extension or terminate the agreement, adding another layer of risk and potential loss for the franchisee.
This process is also utilized for each facility developed under an Area Development Agreement, ensuring consistent site selection standards across all locations a franchisee may operate. Prospective franchisees should clarify with Alloy what constitutes 'all information' required for site review to avoid unintentional delays and ensure a smooth site selection process.