If an Alloy franchisee is leasing, what specific proof is required to renew?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
tions in the Data Sheet to take into account the term of the lease for your Authorized Location.
- B. Renewal. You will have the option to renew your rights under this Agreement for one (1) renewal term of 10 years. We may grant you the option to enter into a renewal agreement for your Facility provided that with respect to the renewal agreement: (i) you have given us written notice of your intent to enter into a renewal agreement at least 6 months but not more than 12 months prior to the end of the expiring term; (ii) you sign our then-current form of franchise agreement (modified to reflect that the agreement relates to a renewal agreement), the terms of which may differ from this Agreement, including higher fees; (iii) you have complied with the provisions of subparagraph 5.E regarding modernization and you perform any further items of modernization and/or replacement of the building, premises, trade dress, equipment and grounds as may be necessary for your Facility to conform to the standards then applicable to new ALLOY facilities, regardless of the cost of such modernizations and/or replacements; (iv) you are not in default of this Agreement or any other agreement pertaining to the franchise granted, you have not been in default of this Agreement on three or more occasions during the term of this Agreement, regardless of whether any cure has been effectuated, have satisfied all monetary and material obligations on a timely basis during the term, and are in good standing; (v) if leasing the Facility premises, you have renewed the lease and have provided written proof of your ability to remain in possession of the premises throughout the renewal pe
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 51–56)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, if a franchisee is leasing the facility premises, they must provide written proof of their ability to remain in possession of the premises throughout the renewal period to be eligible for renewal. This is a condition for Alloy granting the option to enter into a renewal agreement.
In practical terms, this means a franchisee needs to ensure their lease is successfully renewed with the landlord well in advance of the franchise agreement's expiration. They must then furnish Alloy with documentation demonstrating the renewed lease agreement, confirming their continued right to occupy the premises for the 10-year renewal term. This requirement protects Alloy by ensuring the franchisee has a stable location to continue operating the business.
Failure to provide this written proof can prevent the franchisee from renewing their Alloy franchise. The franchisee must also meet other conditions such as providing written notice of intent to renew 6-12 months prior to the end of the term, signing the then-current form of the franchise agreement, complying with modernization requirements, not being in default, meeting training requirements, paying a $5,000 renewal fee, and executing a general release of claims.