What happens if there is a conflict between the terms of the lease and the terms of the Alloy addendum?

According to Alloy's 2025 Franchise Disclosure Document, in the event of a conflict between the terms of the lease and the terms set forth in the addendum, the terms set forth in the addendum will govern. Furthermore, if there is a conflict between notices provided to the landlord by the tenant and Alloy, the notices from Alloy will take precedence. This clause ensures that Alloy's requirements and standards are prioritized in the operation of the franchise.

This provision is included in the Addendum to Lease, which Alloy requires franchisees and their landlords to sign. Alloy recommends that franchisees submit this addendum to the landlord at the beginning of the lease review and negotiation process. However, the terms of the Lease Addendum may not be negotiated without Alloy's prior approval. If the landlord requires Alloy to negotiate the Lease Addendum, Alloy reserves the right to charge the franchisee a fee, which will not exceed Alloy's actual costs associated with the negotiation.

This aspect of the franchise agreement is important for prospective franchisees to understand, as it clarifies the relationship between the lease agreement, the addendum, and Alloy's standards. It ensures that Alloy maintains control over key aspects of the facility's operation and appearance, even though the franchisee is the tenant. Franchisees should be aware of this clause when negotiating their lease agreements and factor in potential negotiation fees from Alloy if the landlord requires changes to the addendum.