Who is responsible for the assignee's training expenses during an Alloy franchise transfer?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
- D.
Conditions of Transfer.
We condition our consent to any proposed transfer, whether to an individual, a corporation, a partnership or any other entity upon the following:
Assignee Requirements.
The assignee must meet all of our then-current requirements for our ALLOY franchise program we are offering at the time of the proposed transfer and sign our then-current form of franchise agreement modified to reflect the term remaining under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
Based on the 2025 Alloy FDD, the document outlines several conditions that must be met for a franchise transfer to be approved, but it does not specify who is responsible for covering the assignee's training expenses. The FDD states that the assignee must meet all of Alloy's then-current requirements for the franchise program and sign the current franchise agreement. This suggests that the assignee will need to undergo training to meet these requirements.
However, the FDD does not explicitly state whether the assignor, the assignee, or Alloy itself is responsible for covering the costs associated with this training. Common industry practice is that the new franchisee (assignee) pays for their own training, but this is not confirmed in the provided documentation.
Therefore, a prospective franchisee should seek clarification from Alloy regarding the responsibility for training expenses during a franchise transfer. Specifically, they should ask whether the assignor or assignee is responsible for these costs, and if the assignee is responsible, what the estimated training fees would be.