What information is required in the 'STATE OF' section of the Alloy franchise agreement acknowledgement?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
| schedules for non-cash transaction: | |||||
|---|---|---|---|---|---|
| Operating lease liability and right-of-use assets | |||||
| recognized on January 1, 2023 | $ | - | $782,230 | $ | - |
Schedule E to the Franchise Agreement
ACKNOWLEDGMENT ADDENDUM TO ALLOY FRANCHISE AGREEMENT
THIS ACKNOWLEDGEMENT ADDENDUM DOES NOT APPLY TO CANDIDATES LOCATED IN OR BUSINESSES TO BE LOCATED IN ANY OF THE FOLLOWING FRANCHISE REGISTRATION STATES: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI.
As you know, you and we are entering into a Fran
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, an Acknowledgment Addendum to the Alloy Franchise Agreement is required; however, it does not apply to candidates or businesses located in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin. The addendum requires franchisees to review and honestly respond to a series of questions to acknowledge and represent that they are entering into the Franchise Agreement for an Alloy franchise.
For franchisees in Minnesota, an addendum to the franchise agreement is required to comply with Minnesota statutes and regulations. This addendum includes stipulations such as Alloy undertaking the defense of trademark infringement claims, providing franchisees with specific termination and nonrenewal rights as per Minnesota law (90 days' notice of termination with 60 days to cure, and 180 days' notice for nonrenewal), and acknowledging the financial assurance (surety bond) required by the Minnesota Department of Commerce due to Alloy's financial condition.
Additionally, the Minnesota addendum modifies certain sections of the franchise agreement to align with Minnesota law, such as prohibiting litigation outside of Minnesota and ensuring that no release language relieves Alloy from liability imposed by Minnesota franchise laws. It also ensures that no disclaimer waives claims of fraud in the inducement or disclaims reliance on statements made by Alloy. These addenda ensure that the Alloy franchise agreement complies with specific state laws and provides additional protections and disclosures to franchisees in those states.