What information must the Alloy franchisee indicate in the application for consent to transfer?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
of first refusal provided for in subparagraph 11.F must be made by submission of our form of application for consent to transfer, which must be accompanied by the documents we request and other required information. The application must indicate whether you or an Owner proposes to retain a security interest in the property to be transferred. No security interest may be retained or created, however, without our prior written consent and except upon conditions acceptable to us. Any agreement used in connection with a transfer will be subject to our prior written approval, which approval will not be withheld unreasonably. You immediately must notify us of any proposed transfer and must submit promptly to us the application for consent to transfer and any other required documents and information. Any attempted transfer by you without our prior written consent or otherwise not in compliance with the terms of this Agreement will be void, your interest in this Agreement will be voluntarily abandoned, and it will provide us with the right to elect either to deem you in default and terminate this Agreement or to collect from you and the guarantors a transfer fee equal to two times the transfe
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, when a franchisee seeks to transfer their franchise, the application for consent to transfer must specify whether the franchisee or an Owner intends to retain a security interest in the property being transferred.
Alloy maintains control over these financial arrangements, as the franchisee cannot retain or create any security interest without Alloy's prior written consent. Furthermore, any agreement related to the transfer is subject to Alloy's approval, which, according to the FDD, will not be unreasonably withheld.
It is crucial for prospective Alloy franchisees to understand that any attempted transfer without Alloy's consent, or that fails to comply with the terms of the franchise agreement, will be considered void. This could lead to the franchisee's interest in the agreement being forfeited, potentially resulting in Alloy either terminating the agreement or levying a transfer fee equal to $20,000, which is two times the standard transfer fee of $10,000.