How can the Interim Period for an Alloy franchise be terminated?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
If you do not exercise your option to enter into a renewal agreement prior to the expiration of this Agreement and continue to accept the benefits of this Agreement after the expiration of this Agreement, then at our option, this Agreement may be treated either as (i) expired as of the date of expiration with you then operating a franchise without the right to do so and in violation of our rights; or (ii) continued on a month-to-month basis ("Interim Period") until one party provides the other with written notice of such party's intent to terminate the Interim Period, in which case the Interim Period will terminate thirty (30) days after receipt of the notice to terminate the Interim Period.
In the latter case, all of your obligations shall remain in full force and effect during the Interim Period as if this Agreement had not expired, and all obligations and restrictions imposed on you upon expiration of this Agreement will be deemed to take effect upon termination of the Interim Period.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the Interim Period, which occurs if a franchisee continues to operate after the expiration of the franchise agreement without a renewal, can be terminated by either party. To terminate the Interim Period, either Alloy or the franchisee must provide the other party with written notice of their intent to terminate.
The termination becomes effective thirty days after the receipt of the termination notice. During this Interim Period, all obligations and responsibilities of the franchisee remain in full effect, as if the original agreement had not expired.
Upon the actual termination of the Interim Period, all obligations and restrictions that would normally be imposed on the franchisee at the expiration of the original agreement will then take effect. This means the franchisee must adhere to all post-expiration requirements outlined in the franchise agreement at the end of the 30-day notice period.