Does Alloy place any geographic limitations on where an Alloy franchisee can source their approved supplies?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The following provisions control with respect to the license granted hereunder:
- A. Facility. We grant to you the right and license to establish and operate a Facility identified by the ALLOY Trademarks or such other marks as we may direct, at the location identified on the Data Sheet, which location must be designated within 90 days from the date of this Agreement (the "Authorized Location"). The Authorized Location must be located within the area defined in the Data Sheet as the "Designated Area." When a location has been designated by you and approved by us, it will become part of this subparagraph 2.A as if originally stated. If a Facility is not "under control" within 180 days from the date of this Agreement (as defined in subparagraph 5.A), we may grant you an extension of time to locate a Facility or terminate this Agreement. You accept the license and undertake the obligation to operate the Facility using the Trademarks and the System in compliance with the terms and conditions of this Agreement.
- B. Opening. You agree that the Facility will be open and operating in accordance with the requirements of subparagraph 5.A within not later than six months after you sign a lease or 12 months after you sign this Agreement, whichever occurs first, unless we authorize in writing an extension of time.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
Based on the 2025 FDD, Alloy grants franchisees the right to operate a facility at a location identified on the Data Sheet, which must be within the Designated Area. The Authorized Location must be designated within 90 days from the date of the Franchise Agreement. If a facility is not "under control" within 180 days from the date of the agreement, Alloy may grant an extension or terminate the agreement.
The Alloy franchisee must operate the facility using Alloy's trademarks and system in compliance with the terms 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.
The FDD does not specify any geographic limitations on where an Alloy franchisee can source their approved supplies. Therefore, it is important for a prospective franchisee to clarify with Alloy whether there are any restrictions on sourcing supplies from specific geographic areas.