What obligations does an Alloy franchisee have regarding Facility signage after termination or expiration of the Franchise Agreement?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
RIGHTS AND DUTIES OF PARTIES UPON TERMINATION OR EXPIRATION
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- Upon termination or expiration of this Agreement, all rights granted to you will automatically terminate, and:
- C. Except as specifically permitted under any then-effective Franchise Agreement, you must take such action as may be necessary to cancel or assign to us or our designee, at our option, any assumed name or equivalent registration that contains the name or any of the words ALLOY or any other Trademark of ours, and you must furnish us with evidence satisfactory to us of compliance with this obligation within 30 days after termination or expiration of this Agreement.
- D. Except as specifically permitted under any then-effective Franchise Agreement, you must assign to us or our designee all your right, title, and interest in and to your telephone numbers and must notify the telephone company and all listing agencies of the termination or expiration of your right to use any telephone number in any regular, classified or other telephone directory listing associated with the Trademarks and to authorize transfer of same at our direction.
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Access to Premises Following Expiration or Termination of Lease.
Upon the expiration or termination of the Lease, Landlord will cooperate with and assist Franchisor in gaining possession of the Premises and, if Franchisor does not elect to assume the Lease for the Premises consistent with paragraphs 3 or 4 above, Landlord will allow Franchisor to enter the Premises, without being guilty of trespass and without incurring any liability to Landlord except for any damages caused by Franchisor's willful misconduct or gross negligence, to remove all signs and all other items identifying the Premises as an ALLOY Facility and to make such other modifications (such as repainting) as are reasonably necessary to protect the ALLOY Marks and System, and to distinguish the Premises from ALLOY Facilities.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, the franchisee must take specific actions regarding signage and trademarks. The franchisee must take action to cancel or assign to Alloy (or Alloy's designee) any assumed name or equivalent registration that contains the word "Alloy" or any of Alloy’s other trademarks. The franchisee must provide Alloy with evidence of compliance with this obligation within 30 days after termination or expiration of the agreement.
In addition to trademark-related obligations, Alloy franchisees must also assign their rights, titles, and interests in their telephone numbers to Alloy or its designee. They are required to notify the telephone company and all listing agencies about the termination or expiration of their right to use any telephone number associated with Alloy’s trademarks in any directory listing. This notification must authorize the transfer of the telephone number at Alloy’s direction.
Furthermore, in the event that the franchisee's lease is terminated or expires, the landlord is obligated to allow Alloy to enter the premises to remove all signs and items identifying the location as an Alloy facility. Alloy is also permitted to make modifications, such as repainting, to protect its marks and system and to differentiate the premises from Alloy facilities. This ensures that after a franchise ceases operation, the public will not associate the location with the Alloy brand.