Who is responsible for the costs incurred by Alloy if they have to remove signage after a franchisee's termination?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the expiration or termination of the Lease, Landlord will cooperate with and assist Franchisor in gaining possession of the Premises and, if Franchisor does not elect to assume the Lease for the Premises consistent with paragraphs 3 or 4 above, Landlord will allow Franchisor to enter the Premises, without being guilty of trespass and without incurring any liability to Landlord except for any damages caused by Franchisor's willful misconduct or gross negligence, to remove all signs and all other items identifying the Premises as an ALLOY Facility and to make such other modifications (such as repainting) as are reasonably necessary to protect the ALLOY Marks and System, and to distinguish the Premises from ALLOY Facilities.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, in the event of lease expiration or termination, the landlord will allow Alloy to enter the premises to remove signage and make necessary modifications to protect Alloy's marks and system. Alloy is responsible for any damages caused by their willful misconduct or gross negligence during the removal process.
If Alloy does not assume the lease, they can enter the premises to remove signs and other items identifying it as an Alloy facility. This ensures the premises are no longer associated with the Alloy brand. Alloy will make modifications, such as repainting, to further distinguish the location from Alloy facilities.
This arrangement protects Alloy's brand and trademarks by ensuring that a former franchisee's location does not continue to represent the brand after termination. The landlord's cooperation is essential for Alloy to maintain control over its brand image and prevent confusion in the marketplace. However, Alloy must be careful to avoid causing damage during the removal process, as they will be liable for any damages resulting from their actions.