During the Interim Period, are all obligations of the Alloy franchisee still in effect?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
Interim Period.
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, if a franchisee continues to operate after the expiration of the franchise agreement without renewing, Alloy has the option to treat the agreement as either expired or continued on a month-to-month basis, which is referred to as the "Interim Period". This Interim Period continues until either party provides written notice of termination, with termination occurring thirty days after receipt of the notice.
During this Interim Period, all obligations of the Alloy franchisee remain in full force and effect, as if the original agreement had not expired. Additionally, all obligations and restrictions that would normally be imposed upon the expiration of the agreement are instead deferred and will take effect only upon the termination of the Interim Period.
This means that an Alloy franchisee operating under an Interim Period must continue to adhere to all terms and conditions of the original franchise agreement, including operational standards, payment obligations, and any other requirements. Failure to comply with these obligations during the Interim Period could result in the same consequences as if the original agreement were still in effect, such as penalties or termination.