What is prohibited regarding the Alloy tenant's ability to sublease or assign the lease to a third party?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
Any such assignment shall be subject to the prior written consent of the Landlord, which Landlord
shall not unreasonably withhold as it relates to a creditworthy franchisee who otherwise meets Franchisor's then-current standards and requirements for franchisees and agrees to operate the Facility as an ALLOY Facility pursuant to a Franchise Agreement with Franchisor. Upon receipt by Landlord of an assumption agreement pursuant to which the assignee agrees to assume the Lease and to observe the terms, conditions and agreements on the part of Tenant to be performed under the Lease, the Franchisor shall thereupon be released from all liability as tenant under the Lease from and after the date of assignment, without any need of a written acknowledgement of such release by Landlord.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, if Alloy assumes the tenant's lease, Alloy has the right to assign the lease or sublet the premises to an Alloy franchisee. However, this assignment is contingent upon receiving prior written consent from the landlord. The landlord cannot unreasonably withhold consent if the assignee is a creditworthy franchisee who meets Alloy's standards and agrees to operate the facility as an Alloy franchise under a Franchise Agreement with Alloy.
Upon the landlord's receipt of an assumption agreement where the assignee commits to adhering to the lease terms, Alloy is released from all liability as the tenant under the lease from the assignment date. No written acknowledgement of this release from the landlord is necessary.
This clause protects Alloy by ensuring that suitable franchisees can take over a lease if Alloy assumes it, while also safeguarding the landlord's interests by requiring a creditworthy and compliant franchisee. It also simplifies the release of Alloy from lease obligations upon assignment, reducing administrative burdens.