Does Alloy have to notify the franchisee in writing that they have satisfied their pre-opening obligations?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not open your Facility for business until we have notified you in writing that you have satisfied your pre-opening obligations as set forth in subparagraphs 5.A and 5.B and we have consented to your opening date. We are not responsible or liable for any of your pre-opening obligations, losses or expenses you might incur for your failure to comply with these obligations or your failure to open by a particular date. We also are entitled to injunctive relief or specific performance under subparagraph 12.C for your failure to comply with your obligations.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, franchisees cannot open their Alloy facility for business until Alloy notifies them in writing that they have satisfied their pre-opening obligations. These obligations are detailed in subparagraphs 5.A and 5.B of the franchise agreement. Alloy must also consent to the franchisee's opening date in writing.
Alloy is not responsible or liable for any pre-opening obligations, losses, or expenses that the franchisee might incur if they fail to comply with these obligations or fail to open by a particular date. This means it is crucial for franchisees to meet all pre-opening requirements and timelines to avoid potential financial repercussions.
Furthermore, Alloy retains the right to seek injunctive relief or specific performance under subparagraph 12.C of the franchise agreement if a franchisee fails to comply with their obligations. This underscores the importance of adhering to all pre-opening requirements to avoid potential legal action from Alloy.