What happens to the telephone numbers associated with the Alloy Facility upon termination of the Franchise Agreement?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
- D. Except as specifically permitted under any then-effective Franchise Agreement, you must assign to us or our designee all your right, title, and interest in and to your telephone numbers and must notify the telephone company and all listing agencies of the termination or expiration of your right to use any telephone number in any regular, classified or other telephone directory listing associated with the Trademarks and to authorize transfer of same at our direction.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, upon termination of the Franchise Agreement, the franchisee is required to transfer all rights and interests in their telephone numbers to Alloy or Alloy's designee. The franchisee must also notify the telephone company and all listing agencies about the termination or expiration of their right to use any telephone number associated with Alloy's trademarks in any directory listing. They must also authorize the transfer of these telephone numbers as directed by Alloy.
This means that if a franchisee's agreement is terminated, Alloy has the right to take over the phone numbers used for the Alloy Facility. This is a standard practice in franchising to ensure brand consistency and to prevent a former franchisee from potentially diverting customers or misrepresenting their affiliation with the brand.
For a prospective Alloy franchisee, this condition highlights the importance of understanding the terms of termination and the potential loss of business assets like phone numbers. It is crucial to consider the implications for customer communication and marketing efforts if the phone numbers are reassigned to Alloy upon termination.