Does the Alloy lease addendum confer any rights to entities not party to the agreement?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
- Access to Premises During Lease. As provided in the Franchise Agreement, Franchisor shall have the right to access the Premises during continuance of the Lease to ensure compliance by Tenant with its obligations under the Franchise Agreement.
8. Additional Provisions.
- (a) Landlord hereby acknowledges that the provisions of this Addendum to Lease are required pursuant to the Franchise Agreement under which Tenant plans to operate its business and the Tenant would not lease the Premises without this Addendum.
- (b) Landlord further acknowledges that Tenant is not an agent or employee of Franchisor and the Tenant has no authority or power to act for, or to create any liability on behalf of, or to in any way bind Franchisor or any affiliate of Franchisor, and that Landlord has entered into this Addendum to Lease with full understanding that it creates no duties, obligations or liability of or against Franchisor or any affiliate of Franchisor, unless and until the Lease is assigned to, and accepted in writing by, Franchisor.
- (c) All notices to Franchisor required by this Addendum must be in writing and sent by registered or certified mail, postage prepaid, to the following address:
If intended for us, addressed to:
Alloy Personal Training, LLC 2500 Old Alabama Road, Suite 24 Roswell, Georgia 30076
Franchisor may change its address for receiving notices by giving Landlord written notice of the new address. Landlord agrees that it will notify both Tenant and Franchisor of any change in Landlord's mailing address to which notices should be sent.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the lease addendum does confer certain rights to the Franchisor, Alloy Personal Training, LLC, even though they are not the tenant. Specifically, Alloy has the right to access the premises during the lease term to ensure the franchisee (Tenant) complies with the Franchise Agreement. This allows Alloy to monitor the franchisee's operations and adherence to brand standards.
The lease addendum explicitly states that the landlord acknowledges the addendum is required by the Franchise Agreement, and the franchisee would not lease the premises without it. However, the addendum also clarifies that the franchisee is not an agent or employee of Alloy and cannot create any liability on behalf of Alloy unless the lease is assigned to and accepted by Alloy in writing. This protects Alloy from liabilities arising from the franchisee's actions, unless Alloy assumes the lease.
Furthermore, the addendum requires that all notices to Alloy be in writing and sent via registered or certified mail to Alloy's specified address. The landlord must also notify both the franchisee and Alloy of any changes to the landlord's mailing address. This ensures Alloy receives important communications related to the lease and premises. Overall, the lease addendum balances Alloy's need to protect its brand and ensure franchisee compliance with the franchisee's independence and responsibility for the lease.