If a franchisee is a multi-unit developer with Alloy, when must they sign their first Franchise Agreement?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are a multi-unit developer, you must sign your first Franchise Agreement at the same time you sign the Area Development Agreement. The typical length of time between the signing of the Franchise Agreement and the opening of your first Franchised Business is the same as for an individual franchisee. Each additional Franchised Business you develop must be opened according to the terms of your Minimum Performance Schedule.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 31–42)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, multi-unit developers must sign their first Franchise Agreement when they sign the Area Development Agreement. The time frame between signing the Franchise Agreement and opening the first Alloy franchised business is the same as it is for an individual franchisee.
For prospective Alloy multi-unit developers, this means that the commitment to open their first location is made at the same time as the broader agreement to develop multiple units. This simultaneous signing ensures that Alloy can begin providing support and guidance for site selection, build-out, and training immediately.
The FDD also states that each additional Alloy franchised business developed by the multi-unit developer must be opened according to the terms of their Minimum Performance Schedule. This schedule will outline the specific timeline and requirements for opening subsequent locations, ensuring a structured and predictable expansion process for both the franchisee and Alloy.