factual

What obligation does the franchisee undertake regarding the Alloy Facility?

Alloy Franchise · 2025 FDD

Answer from 2025 FDD Document

ent 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.

FACILITY STANDARDS AND MAINTENANCE

    1. You acknowledge and agree that we have the right to establish, from time to time, quality standards regarding the business operations of ALLOY facilities to protect the distinction, goodwill and uniformity symbolized by the Trademarks and the System. Accordingly, you agree to maintain and comply with our quality standards and agree to the following terms and conditions:
    • A. Facility; Site Under Control. You are responsible for leasing a site that meets our site selection guidelines. We must consent to the site in writing. You may not use the Facility

premises for any purpose other than the operation of an ALLOY Facility during the term of this Agreement or any Interim Period. We make no guarantees concerning the success of the Facility located on any site to which we consent.

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.

You and your landlord must sign the Lease Addendum attached as Schedule B. We recommend you submit the Lease Addendum to the landlord at the beginning of your lease review and negotiation, although the terms of the Lease Addendum may not be negotiated without our prior approval. If the landlord requires us to negotiate the Lease Addendum, we reserve the right to charge you a fee, which will not exceed our actual costs associated with the negotiation. You must provide us a copy of the executed lease and Lease Addendum within 5 days of its execution. We have no responsibility for the lease; it is your sole responsibility to evaluate, negotiate and enter into the lease for the Facility premises.

You must execute, and provide us an executed copy of your lease (including an executed copy of the Lease Addendum) or the purchase agreement for the selected and approved site for your Facility within 180 days from the date of execution of this Agreement. If you fail to have your "site under control" (you and we agree on a site and you execute a lease or purchase agreement for the site) within 180 days after the date of execution of this Agreement, we will have the right to terminate this Agreement without opportunity to cure pursuant to subparagraph 13.B.2.

B. Construction; Future Alteration.

Source: Item 23 — RECEIPTS (FDD pages 69–245)

What This Means (2025 FDD)

According to Alloy's 2025 Franchise Disclosure Document, franchisees have several obligations regarding their Alloy facility. Alloy requires franchisees to lease a site that meets Alloy's site selection guidelines, with Alloy having to provide written consent to the site. The franchisee can only use the facility premises to operate their Alloy franchise during the term of the agreement or any interim period. However, Alloy does not guarantee the success of the facility at any site they consent to.

The franchisee cannot open their Alloy facility until Alloy notifies them in writing that they have satisfied their pre-opening obligations. Alloy is not responsible or liable for any pre-opening obligations, losses, or expenses incurred if the franchisee fails to comply with these obligations or fails to open by a particular date. Alloy also has the right to establish quality standards regarding the business operations of Alloy facilities to protect the goodwill and uniformity symbolized by the trademarks and the system.

Furthermore, Alloy grants the franchisee the right to establish and operate a facility identified by the Alloy trademarks at the location identified on the Data Sheet, which must be designated within 90 days from the date of the agreement. If a facility is not "under control" within 180 days from the date of the agreement, Alloy may grant an extension of time to locate a facility or terminate the agreement. The franchisee accepts the license and undertakes the obligation to operate the facility using the trademarks and the system in compliance with the terms and conditions of the agreement. The facility must be open and operating within six months after signing a lease or 12 months after signing the agreement, whichever occurs first, unless Alloy authorizes an extension in writing.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.