Does Alloy reserve the right to review the lease agreement for an approved site?

According to Alloy's 2025 Franchise Disclosure Document, Alloy retains the right to review any lease, sublease, or purchase agreement for the approved site before the franchisee signs it. Furthermore, Alloy can require that both the franchisee and the landlord sign Alloy's standard Lease Addendum, which is attached as an appendix to the Franchise Agreement.

This provision gives Alloy significant control over the location of its franchises. By reviewing the lease agreement, Alloy can ensure that the terms are favorable and that the location meets its standards. The Lease Addendum likely contains clauses that protect Alloy's interests, such as the right to enter the premises or to approve alterations.

For a prospective franchisee, this means they cannot finalize a lease agreement without Alloy's approval. This could potentially delay the opening of the franchise if there are disagreements over the lease terms. It is important for potential franchisees to carefully review the Lease Addendum and understand their obligations before signing the Franchise Agreement. Franchisees should also factor in the time it may take to get Alloy's approval when planning their launch timeline.

This level of franchisor involvement in lease agreements is fairly common in the franchise industry, especially for brick-and-mortar businesses. It allows the franchisor to maintain brand consistency and protect its interests by ensuring franchisees secure suitable locations with acceptable lease terms.