What are the requirements for an Alloy franchisee to renew their franchise agreement?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
15.P below and the Data Sheet and ends 10 years from the date of this Agreement, subject to any modifications in the Data Sheet to take into account the term of the lease for your Authorized Location.
- B. Renewal. You will have the option to renew your rights under this Agreement for one (1) renewal term of 10 years. We may grant you the option to enter into a renewal agreement for your Facility provided that with respect to the renewal agreement: (i) you have given us written notice of your intent to enter into a renewal agreement at least 6 months but not more than 12 months prior to the end of the expiring term; (ii) you sign our then-current form of franchise agreement (modified to reflect that the agreement relates to a renewal agreement), the terms of which may differ from this Agreement, including higher fees; (iii) you have complied with the provisions of subparagraph 5.E regarding modernization and you perform any further items of modernization and/or replacement of the building, premises, trade dress, equipment and grounds as may be necessary for your Facility to conform to the standards then applicable to new ALLOY facilities, regardless of the cost of such modernizations and/or replacements; (iv) you are not in default of this Agreement or any other agreement pertaining to the franchise granted, you have not been in default of this Agreement on three or more occasions during the term of this Agreement, regardless of whether any cure has been effectuated, have satisfied all monetary and material obligations on a timely basis during the term, and are in good standing; (v) if leasing the Facility premises, you have renewed the lease and have provided written proof of your ability to remain in possession of the premises throughout the renewal pe
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 51–56)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, franchisees have the option to renew their franchise agreement for one additional term of 10 years. To do so, franchisees must provide written notice of their intent to renew between 6 and 12 months before the current term expires. They must also sign Alloy's then-current franchise agreement, which may have different terms and higher fees than the original agreement.
Another key requirement is that the Alloy location must meet the standards applicable to new Alloy facilities at the time of renewal, which may require modernization or replacement of the building, premises, trade dress, equipment, and grounds, regardless of the cost. The franchisee must also not be in default of the Franchise Agreement or any other agreement with Alloy, must have met all monetary and material obligations on time, and must be in good standing. A franchisee cannot have been in default of the agreement on three or more occasions during the term, regardless of whether the default was cured.
To finalize the renewal, franchisees must prove they can remain in possession of the premises for the renewal period, comply with Alloy's current training requirements, pay a renewal fee of $5,000, and ensure that they and their owners/guarantors execute a general release of claims in a form prescribed by Alloy. This means a franchisee needs to be prepared to invest further capital to upgrade their facility and continue meeting Alloy's brand standards to be eligible for renewal.