Can the Alloy lease addendum be amended?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
This Addendum between Alloy Personal Training, LLC ("Franchisor") and to the Franchise Agreement ("Franchisee" ("Franchise or "you") is Agreement") entered dated into simultaneously with the execution of the Franchise Agreement. The provisions of this Addendum form an integral part of, and are incorporated into the Franchise Agreement. This Addendum is being executed because: (a) the offer or sale of the franchise to Franchisee was made in the State of Virginia; (b) Franchisee is a resident of the State of Virginia; and/or (c) the franchised business will be located or operated in the State of Virginia. Section 9.A, Initial Franchise Fee, is amended to include the following statement: The Virginia State Corporation Commission's Division of Securities and Retail Franchising requires us to defer payment of the initial franchise fee and other initial payments owed by franchisee to the franchisor until the franchisor has completed its pre-opening obligations under the franchise agreement. Except as expressly modified by this Addendum, the Franchise Agreement remains unmodified and in full force and effect. The undersigned Franchisee does hereby acknowledge receipt of this Addendum. Alloy Personal Training, LLC
ADDENDUM TO THE AREA DEVELOPMENT AGREEMENT REQUIRED FOR THE STATE OF VIRGINIA
This Addendum pertains to franchises sold in the Commonwealth of Virginia and is for the purpose of complying with Virginia statutes and regulations. Notwithstanding anything which may be contained in the body of the Area Development Agreement to the contrary, the Agreement is amended as follows:
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- Section 3, Development Fee, is amended to include the following statement: The Virginia State Corporation Commission's Division of Securities and Retail Franchising requires us to defer payment of the initial franchise fee and other initial payments owed by franchisee to the franchisor until the franchisor has completed its pre-opening obligations under the area development agreement.
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- In all other respects, the Area Development Agreement will be construed and enforced according to its terms.
Each of the undersigned hereby acknowledges having read and understood this Addendum and consents to be bound by all of its terms.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
Based on the 2025 Alloy Franchise Disclosure Document, the lease addendum can be amended. Several addenda included in the FDD modify the franchise agreement and area development agreement for franchisees in specific states like Virginia, Illinois, and Minnesota. These addenda address state-specific regulations and requirements, demonstrating that the agreements can be altered through addenda.
For example, the Virginia addendum modifies Section 9.A of the Franchise Agreement, concerning the initial franchise fee, to comply with the Virginia State Corporation Commission's requirements regarding deferred payment until pre-opening obligations are met. Similarly, the Illinois addendum addresses the financial condition of Alloy, mandating a surety bond due to requirements from the Illinois Attorney General's Office, and modifies sections related to legal claims and applicable law.
These state-specific addenda indicate that the Alloy franchise agreement and, by extension, related documents like the lease addendum, are subject to amendments to ensure compliance with local laws and regulations. A prospective franchisee should carefully review any state-specific addenda applicable to their location and understand how these modifications affect their rights and obligations under the franchise agreement.