Does Alloy have the right to grant other franchises outside of my Development Territory?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
Outside of the Development Territory, we and our affiliates have the right to grant other franchises or develop and operate company or affiliate owned ALLOY facilities and offer, sell or distribute any products or services associated with the System (now or in the future) and under the Trademarks or any other trademarks, service marks or trade names or through any distribution channel or method, all without compensation to any franchisee.
We and our affiliates have the right to offer, sell or distribute, within and outside the Development Territory, any services or products associated with the System (now or in the future) or identified by the Trademarks, or any other trademarks, service marks or trade names, through any distribution channels or methods, without compensation to any franchisee. The distribution channels or methods ("Alternative Methods of Distribution") include, without limitation, the internet (or any other existing or future form of electronic commerce).
You acknowledge and agree that certain locations within the Development Territory are by their nature unique and separate in character from sites generally developed as facilities. As a result, you agree that the following captive market locations ("Special Sites") are excluded from the Development Territory and we have the right to develop or franchise such locations: (1) military bases; (2) public transportation facilities (including airports); (3) business or industry locations (e.g. manufacturing site, office building), or sports facilities; (4) student unions or other similar buildings on college or university campuses; (5) malls or enclosed shopping centers; and (6) community and special events.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, Alloy retains the right to grant other franchises or develop and operate company-owned facilities outside of a franchisee's Development Territory. This means that while a franchisee is granted specific development rights within their defined territory, Alloy is not restricted from expanding its brand through other franchisees or company-owned locations in areas outside of that territory. This is a fairly standard practice in franchising, allowing the franchisor to grow the brand strategically across different markets.
Alloy also retains the right to offer and sell services or products associated with the Alloy system through any distribution channels, including the internet, both within and outside the Development Territory, without compensating the franchisee. This includes the use of other trademarks, service marks, or trade names. This provision ensures that Alloy can adapt to changing market conditions and utilize various distribution methods to maximize brand reach and revenue, which may include online sales, partnerships, or other channels that could potentially compete with individual franchisees.
Furthermore, Alloy can develop or franchise what it terms "Special Sites" such as military bases, airports, college campuses, and malls, even within a franchisee's Development Territory. These locations are considered unique and separate from typical Alloy facilities. This exception to the franchisee's territorial rights allows Alloy to pursue opportunities in non-traditional locations that may require specialized business models or operational considerations. A prospective franchisee should consider how these retained rights of Alloy could impact their business and market share within their Development Territory.