Does Alloy require prospective franchisees to acknowledge they've had the opportunity to discuss the benefits and risks of operating an Alloy franchise with a professional advisor?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Franchises sold | 51 | 70 | 30 |
| Franchises purchased | - | - | - |
| Franchised outlets in operation | 76 | 30 | 12 |
| Affiliate-owned outlets in operation | 1 | 1 | 1 |
| 8. | Do you understand that that the franchise granted is for the right to operate a Facility at the Authorized Location only, that you receive no protected territory or exclusive area and that we and our affiliates have the right to issue franchises or operate competing businesses for or at any other location and through alternative channels of distribution? Check one: () Yes () No. If no, please comment: : | ||
| 9. | Do you understand that the Franchise Agreement and Disclosure Document contain the entire agreement between you and us concerning the franchise for the Facility, meaning that any prior oral or written statements not set out in the Franchise Agreement or Disclosure Document will not be binding? Check one: () Yes () No. If no, please comment: | ||
| 10. | Have you had adequate opportunity to discuss the benefits and risks of operating an ALLOY franchise with an attorney, accountant or other professional advisor? Check one: () Yes () No. If no, please comment. |
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, prospective franchisees must acknowledge whether they've had the opportunity to discuss the benefits and risks of operating an Alloy franchise with a professional advisor. This acknowledgement is part of a series of statements in the receipt section that franchisees must confirm.
Specifically, franchisees are asked to check 'Yes' or 'No' to the statement: 'Have you had adequate opportunity to discuss the benefits and risks of operating an ALLOY franchise with an attorney, accountant or other professional advisor?' They are also given the opportunity to comment if they answer 'No.'
This requirement ensures that franchisees are aware of the importance of seeking professional advice before investing in an Alloy franchise. It also serves as a record for Alloy, confirming that franchisees were given the chance to consult with experts who could help them understand the financial and legal implications of the franchise agreement. This is a common practice in franchising, as it protects both the franchisee and the franchisor by promoting informed decision-making.