If an Alloy franchisee refuses to remove signage after termination, what right does Alloy have?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the expiration or termination of the Lease, Landlord will cooperate with and assist Franchisor in gaining possession of the Premises and, if Franchisor does not elect to assume the Lease for the Premises consistent with paragraphs 3 or 4 above, Landlord will allow Franchisor to enter the Premises, without being guilty of trespass and without incurring any liability to Landlord except for any damages caused by Franchisor's willful misconduct or gross negligence, to remove all signs and all other items identifying the Premises as an ALLOY Facility and to make such other modifications (such as repainting) as are reasonably necessary to protect the ALLOY Marks and System, and to distinguish the Premises from ALLOY Facilities.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, upon the expiration or termination of the lease, the landlord will cooperate with Alloy to gain possession of the premises. If Alloy does not elect to assume the lease, the landlord will allow Alloy to enter the premises to remove all signs and other items identifying the premises as an Alloy facility. Alloy can also make other modifications, such as repainting, to protect the Alloy marks and system and to distinguish the premises from Alloy facilities. This is done without incurring any liability to the landlord, except for damages caused by Alloy's willful misconduct or gross negligence.
This means that if a franchisee fails to remove Alloy signage after the termination of the franchise agreement, Alloy has the right to enter the premises (with the landlord's cooperation) and remove the signage themselves. This is crucial for maintaining brand consistency and preventing consumer confusion. Alloy's ability to modify the premises further ensures that the location no longer appears to be an Alloy facility.
Prospective franchisees should understand that Alloy takes brand protection seriously and has mechanisms in place to ensure that terminated franchisees do not continue to represent themselves as part of the Alloy system. This clause protects Alloy's brand and goodwill, but it also places a responsibility on the franchisee to comply with the termination requirements to avoid Alloy taking such actions.