When does my right to develop additional Alloy Facilities expire?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are in compliance with the Development Schedule, we will not develop or operate or grant anyone else a franchise to develop and operate a ALLOY facility (except for Special Sites as defined in Section 2.D or as otherwise set forth in this Agreement) in the Development Territory prior to the earlier of (i) the expiration or termination of this Agreement; (ii) the date on which you must execute the Franchise Agreement for your last Facility pursuant to the terms of the Development Schedule or (iii) the date on which the Authorized Location for your final Facility under this Agreement is determined.
Notwithstanding anything in this Agreement, upon the earliest occurrence of any of the foregoing events (a) your right to develop any additional Facility will expire and (b) we will be entitled to develop and operate, or to franchise others to develop and operate, ALLOY facilities in the Development Territory, except as may be otherwise provided under any Franchise Agreement that has been executed between us and you and that has not been terminated.
At the time you execute your final Franchise Agreement under the Development Schedule, you must have an Authorized Location for the Facility to be developed under the final Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, your right to develop additional Alloy facilities expires upon the earliest occurrence of several events. These include the expiration or termination of the Development Agreement, the date you must execute the Franchise Agreement for your last facility as per the Development Schedule, or the date the Authorized Location for your final facility under the agreement is determined.
Upon any of these events occurring, your right to develop any additional Alloy facility will expire. Following this expiration, Alloy has the right to develop and operate, or franchise others to develop and operate, Alloy facilities in the Development Territory. This is with the exception of any provisions made under a Franchise Agreement that has been executed between you and Alloy and has not been terminated.
It is important to note that compliance with the Development Schedule is essential. If you are compliant with the Development Schedule, Alloy will not develop or operate, or grant anyone else a franchise to develop and operate an Alloy facility in the Development Territory before the aforementioned dates. However, this does not apply to Special Sites as defined in Section 2.D of the agreement or as otherwise set forth in the agreement.
At the time of executing the final Franchise Agreement under the Development Schedule, you must have an Authorized Location for the facility to be developed under that final Franchise Agreement. This ensures that all development rights are tied to specific locations and timelines, preventing indefinite or speculative expansion rights.