Is Alloy responsible or liable for any of the franchisee's pre-opening obligations, losses, or expenses?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
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, Alloy is not responsible or liable for any of the franchisee's pre-opening obligations, losses, or expenses. Alloy emphasizes that franchisees are responsible for leasing a site that meets Alloy's site selection guidelines, and Alloy must provide written consent to the site. However, Alloy makes no guarantees concerning the success of the facility at any site to which they consent.
Alloy states that a franchisee may not open their facility for business until Alloy has notified them in writing that they have satisfied their pre-opening obligations. Alloy also states that it is not responsible or liable for any of the franchisee's pre-opening obligations, losses, or expenses incurred if the franchisee fails to comply with these obligations or fails to open by a particular date.
This means that the franchisee bears the full financial risk and responsibility for all costs and potential losses incurred before the Alloy fitness studio opens. This includes expenses related to site selection, leasing, construction, and any delays in meeting Alloy's pre-opening requirements. Prospective franchisees should carefully consider these potential costs and risks and ensure they have sufficient capital to cover these expenses.