What right does Alloy have if a developer fails to comply with the Development Schedule?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
If you fail to either execute a Franchise Agreement or to open an Facility according to the dates set forth in this Agreement or otherwise fail to comply with the Development Schedule, we have the right to immediately terminate this Agreement pursuant to Section 7.B.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, if a developer fails to either execute a Franchise Agreement or to open a facility according to the dates in the agreement, or otherwise fails to comply with the Development Schedule, Alloy has the right to immediately terminate the Development Agreement. This right is pursuant to Section 7.B of the agreement.
This means that a prospective Alloy franchisee who signs a Development Agreement must strictly adhere to the Development Schedule outlined in the agreement. Failure to meet deadlines for executing franchise agreements or opening facilities can result in the immediate termination of the Development Agreement by Alloy.
This provision underscores the importance of careful planning and execution for Alloy developers. The franchisee bears the risk of ensuring they can meet the obligations outlined in the Development Schedule, as Alloy retains the right to terminate the agreement if these obligations are not met. This could result in the loss of development rights and any fees paid to Alloy.