What happens to Section 10.G (1) in the Alloy Area Development Agreement?

According to Alloy's 2025 Franchise Disclosure Document, Section 10.G (1) of the Area Development Agreement is deleted in its entirety and replaced with a new section for franchises sold in Illinois. The new section specifies that the parties' rights under the agreement and their relationship will be governed by Illinois law, both statutory and otherwise, subject to Alloy's rights under federal trademark laws and the parties' rights under the Federal Arbitration Act in accordance with Section 15.01 of the agreement.

This modification ensures that the Area Development Agreement complies with Illinois state law. It clarifies that while federal trademark laws and the Federal Arbitration Act still apply, the interpretation and enforcement of the agreement will primarily be based on Illinois law. This change could impact how disputes are resolved and what legal standards are applied in the event of a conflict between Alloy and the franchisee in Illinois.

For a prospective Alloy franchisee in Illinois, this addendum provides additional protection by ensuring that Illinois law governs the agreement. It is important to carefully review both the original Section 10.G (1) and the replacement text to fully understand the changes and their implications. Franchisees should also consult with a legal professional to understand their rights and obligations under Illinois law.