Does Alloy have the right to establish and operate facilities outside of my Designated Territory?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
During the term of the Franchise Agreement, we (and any affiliates that we periodically might have) have the right:
- (1) to establish and operate, and grant rights to other franchise owners to establish and operate, Facilities or similar businesses at any locations outside your Designated Territory and on any terms and conditions we deem appropriate;
- (2) merge with, acquire or become associated with ("Merger/Acquisition Activity") any businesses or facilities of any kind (including those in competition with ALLOY) under other systems and/or marks, which businesses and facilities may convert to or operate under the Marks and may offer or sell training services or related products that are the same as or similar to the services or products offered at or from the Franchised Business, and which may be located anywhere;
- (3) to engage in any other business activities not expressly prohibited by the Franchise Agreement, both within and outside your Designated Territory, and
Source: Item 12 — TERRITORY (FDD pages 42–46)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, Alloy retains the right to establish and operate Alloy facilities or similar businesses outside of a franchisee's Designated Territory. Alloy can also grant rights to other franchise owners to do the same, and these activities can occur under terms and conditions that Alloy deems appropriate. This means that while franchisees are granted a Designated Territory, Alloy is not restricted from opening additional locations outside of that territory, potentially impacting the franchisee's market reach.
Alloy also has the right to engage in Merger/Acquisition Activity with any businesses, including those that compete with Alloy. These acquired businesses can convert to or operate under Alloy's marks and offer similar training services or related products, regardless of their location. Additionally, Alloy can engage in any other business activities not expressly prohibited by the Franchise Agreement, both within and outside a franchisee's Designated Territory.
Furthermore, Alloy can develop or franchise Special Site locations, such as military bases, transportation facilities, business or industry locations, sports facilities, college campuses, malls, and community events, regardless of their proximity to a franchisee's facility. These Special Sites are considered unique and separate from typical Alloy facilities. While franchisees may serve customers who live anywhere, Alloy may place restrictions on promotional activities, especially those conducted online or through direct marketing, to avoid direct solicitation of customers outside the Designated Territory. These stipulations highlight that while a franchisee has a protected area, Alloy maintains broad rights to expand and operate outside of it.