What right does Alloy reserve if the landlord requires them to negotiate the Lease Addendum?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
You and your landlord must sign the Lease Addendum attached as Schedule B. We recommend you submit the Lease Addendum to the landlord at the beginning of your lease review and negotiation, although the terms of the Lease Addendum may not be negotiated without our prior approval. If the landlord requires us to negotiate the Lease Addendum, we reserve the right to charge you a fee, which will not exceed our actual costs associated with the negotiation.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, Alloy requires that franchisees and their landlords sign a Lease Addendum. Alloy recommends submitting this addendum at the beginning of lease negotiations. However, the franchisee cannot negotiate the terms of the Lease Addendum without Alloy's prior approval.
If the landlord requires Alloy to negotiate the Lease Addendum, Alloy reserves the right to charge the franchisee a fee. This fee will not exceed Alloy's actual costs associated with the negotiation.
This means that prospective Alloy franchisees need to be aware that if their landlord is unwilling to accept the standard Lease Addendum and insists on changes requiring Alloy's direct involvement, the franchisee may incur additional costs. It is important for franchisees to factor in potential negotiation fees when budgeting for their initial investment.