If the franchisee is a partnership, what change requires Alloy's consent as a transfer?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
Specifically, but without limiting the generality of the foregoing, the following events constitute a transfer and you must comply with the right of first refusal, consent, transfer fee, and other transfer conditions in this Paragraph 11:
Any change in the percentage of the franchisee entity owned, directly or indirectly, by any Owner (including any addition or deletion of any person or entity who qualifies as an Owner) that results in a 20% or more change of ownership interest;
Any change in the general partner of a franchisee that is a general, limited or other partnership entity;
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, if the franchisee is a partnership, any change in the general partner requires Alloy's prior written consent. Alloy requires this consent because they have entered into the agreement with specific reliance upon the franchisee's financial qualifications, experience, skills, and managerial qualifications. These qualifications are essential to the satisfactory operation of the Alloy facility.
This means that a franchisee cannot simply change their general partner without Alloy's approval. This requirement allows Alloy to maintain control over who is operating an Alloy franchise and ensures that all franchisees meet their standards.
It is important to note that this is just one of several conditions that Alloy may impose on a transfer. Other conditions include the assignee meeting Alloy's current requirements for franchisees, payment of all amounts owed to Alloy, providing all required reports, and complying with modernization requirements.