Does Alloy reserve the right to create a more limited Designated Area for Facilities located in densely populated areas?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve the right to create a more limited Designated Area for Facilities located in densely populated areas but your Designated Area will have a population of at least 30,000 people. Your Designated Area may be described in terms of street boundaries or may be drawn on a map to be attached to your Franchise Agreement. We (and any affiliates) will not establish, nor allow another franchise owner to establish, another Franchised Business located within your Designated Area, although in certain instances there may be overlap of Designated Area boundaries of two franchisees. We do not anticipate permitting franchisees to establish
Facilities at captive market locations, such as a shopping mall, office building, or similar location. There are no circumstances under which we can modify the boundaries of your Designated Area during the term of your Franchise Agreement.
Source: Item 12 — TERRITORY (FDD pages 42–46)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, Alloy does reserve the right to create a more limited Designated Area for Alloy Facilities located in densely populated areas. However, even in densely populated areas, the Designated Area will include a population of at least 30,000 people.
For a prospective franchisee, this means that while the physical size of their protected territory might be smaller in a densely populated area, Alloy guarantees a minimum population within that area. The Designated Area will be described in an exhibit to the Franchise Agreement and may be defined by street boundaries or a map attached to the agreement.
Alloy will not establish, nor allow another franchisee to establish, another Franchised Business within the franchisee's Designated Area. However, the FDD notes that there may be overlap of Designated Area boundaries of two franchisees in certain instances. Alloy also does not anticipate permitting franchisees to establish Facilities at captive market locations, such as shopping malls or office buildings.