What outstanding amounts must be paid before Alloy will consent to a transfer?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
All amounts owed by you to us, or any of our affiliates, your suppliers or any landlord for the Facility premises and Facility, or upon which we or any of our affiliates have any contingent liability must be paid in full.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, before Alloy will consent to a franchise transfer, all outstanding amounts owed by the franchisee must be paid in full. This includes any debts to Alloy itself, its affiliates, the franchisee's suppliers, or the landlord of the Alloy facility premises. This condition also extends to any contingent liabilities that Alloy or its affiliates might have related to the franchise.
This requirement ensures that Alloy does not inherit any financial burdens or unresolved debts from the transferring franchisee. It protects Alloy's financial interests and maintains the financial integrity of the franchise system. For a prospective franchisee looking to sell their Alloy business, it is crucial to settle all outstanding debts and liabilities before initiating the transfer process.
This condition is a fairly standard practice in franchising. Franchisors typically want to ensure a clean transfer of ownership without assuming any pre-existing financial obligations. Franchisees should maintain meticulous records of all payments and financial transactions to facilitate a smooth transfer process and avoid any potential delays or complications.