Who is responsible for leasing a site that meets Alloy's site selection guidelines?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Facility; Site Under Control. You are responsible for leasing a site that meets our site selection guidelines. We must consent to the site in writing. You may not use the Facility
premises for any purpose other than the operation of an ALLOY Facility during the term of this Agreement or any Interim Period. We make no guarantees concerning the success of the Facility located on any site to which we consent.
You may not open your Facility for business until we have notified you in writing that you have satisfied your pre-opening obligations as set forth in subparagraphs 5.A and 5.B and we have consented to your opening date. We are not responsible or liable for any of your pre-opening obligations, losses or expenses you might incur for your failure to comply with these obligations or your failure to open by a particular date. We also are entitled to injunctive relief or specific performance under subparagraph 12.C for your failure to comply with your obligations.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the franchisee is responsible for leasing a site that meets Alloy's site selection guidelines. However, Alloy must provide written consent to the site. The document specifies that the franchisee cannot use the facility premises for any purpose other than operating an Alloy franchise during the term of the agreement. Alloy makes no guarantees regarding the success of the facility at any site to which they consent.
Furthermore, the franchisee cannot open their Alloy facility for business until Alloy has provided written notification that the franchisee has satisfied all pre-opening obligations and Alloy has consented to the opening date. Alloy is not responsible or liable for any pre-opening obligations, losses, or expenses incurred by the franchisee if they fail to comply with these obligations or fail to open by a specific date.
This arrangement is typical in franchising, where the franchisee bears the responsibility for site selection and lease negotiation, but the franchisor retains approval rights to ensure brand consistency and suitability. The franchisee carries the risk of pre-opening expenses and delays, highlighting the importance of thorough planning and adherence to Alloy's guidelines.