What happens to the term of the Alloy franchise agreement upon transfer?

According to Alloy's 2025 Franchise Disclosure Document, if a franchisee transfers their Alloy franchise, the assignee (the new franchisee) must sign Alloy's then-current form of franchise agreement. However, this new agreement will be modified to reflect the term remaining under the original agreement. This means the new franchisee will not receive a brand new, full-length franchise term, but instead will inherit the remaining portion of the original franchisee's term.

This condition ensures that Alloy maintains control over the length of franchise agreements and that transfers do not inadvertently extend the overall term beyond what was initially agreed upon. For a prospective franchisee, this means that if you are considering purchasing an existing Alloy franchise, you need to carefully evaluate the remaining term of the franchise agreement, as it will directly impact the length of time you are authorized to operate the franchise under the Alloy brand.

It is also important to note that Alloy's consent to any proposed transfer is conditional upon the assignee meeting all of Alloy's then-current requirements for franchisees. This includes not only signing the modified franchise agreement but also fulfilling all other obligations and standards that Alloy requires of its franchisees at the time of the transfer. This protects Alloy's brand standards and ensures that all franchisees, even those who acquire existing locations, meet the franchisor's current criteria.