Regarding the Alloy Disclosure Document and Area Development Agreement, does Alloy require franchisees to confirm they have carefully studied and reviewed these documents?

According to Alloy's 2025 Franchise Disclosure Document, several addenda require franchisees and developers to acknowledge that they have read and understood the respective addendum and consent to be bound by its terms. Specifically, this acknowledgement is required for addenda pertaining to franchises sold in South Dakota, Minnesota, Virginia, and Illinois.

This requirement ensures that franchisees and developers are aware of any state-specific regulations or modifications to the standard franchise or area development agreement. These addenda often address specific legal requirements or financial assurances mandated by the state, such as deferring initial fees due to Alloy's financial condition or clarifying rights regarding termination and non-renewal.

By signing these addenda, franchisees and developers confirm their understanding of these state-specific terms and their agreement to comply with them. This acknowledgement helps protect both the franchisee and Alloy by ensuring that all parties are informed of their rights and obligations under the franchise agreement, as modified by state law.