Does Alloy have the right to develop company-owned Alloy facilities outside of my Development Territory?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
- D. The rights granted under this Agreement are limited to the right to develop Facilities located in the Development Territory, and do not include (i) any right to sell products and services identified by the Trademarks at any location or through any other channels or methods of distribution, including the Internet (or any other existing or future form of electronic commerce), other than at Facilities within the Development Territory pursuant to the terms of the applicable Franchise Agreement, (ii) any right to sell products and services identified by the Trademarks to any person or entity for resale or further distribution, or (iii) any right to exclude, control or impose conditions on our development or operation of franchised, company or affiliate owned facilities at
any time or at any location outside of the Development Territory. You may not use the words ALLOY or any of the other Trademarks as part of the name of your corporation, partnership, limited liability company or other similar entity.
You acknowledge and agree that we and our affiliates have the right to operate and franchise others the right to operate facilities or any other business within and outside the Development Territory under trademarks other than the ALLOY Trademarks, without compensation to any franchisee, except that our operation of, or association or affiliation with, facilities (through franchising or otherwise) in the Development Territory that compete with ALLOY facilities will only occur through some form of merger or acquisition with an existing facility or retail chain business.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, Alloy and its affiliates retain the right to develop and operate company-owned Alloy facilities outside of a franchisee's Development Territory. This means that while a franchisee is granted specific development rights within their territory, Alloy is not restricted from establishing its own or franchising other Alloy locations elsewhere.
This right extends to offering, selling, or distributing any services or products associated with the Alloy system through any distribution channels or methods, including the internet, without providing any compensation to the franchisee. This also includes the use of trademarks, service marks, or trade names.
This aspect of the franchise agreement is standard practice, as it allows Alloy to grow its brand and explore different markets without being limited by individual franchise territories. However, it's important for potential franchisees to understand that Alloy can operate or franchise other Alloy facilities outside their territory, which could impact their long-term growth strategy.
The agreement specifies that the rights granted to the franchisee are limited to developing facilities within their Development Territory. These rights do not include the ability to sell products and services identified by the trademarks at any location or through other channels, or the right to sell products for resale or further distribution. Alloy retains all rights not expressly granted to the franchisee, including the right to establish franchised or company-owned facilities at any location, regardless of proximity to the franchisee's designated area.