For the second Alloy facility, when must it be opened and continuously operating for business in the Development Territory according to the Alloy Area Development Agreement?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
| Facility Number | Date by Which Franchise Agreement Must be Signed | Date by Which the Facility Must be Opened and Continuously Operating for Business in the Territory | Cumulative number of Facilities Required to be Open and Continuously Operating for Business in the Development Territory as of the Date in Preceding Column |
|---|---|---|---|
| 1 | Date of this Agreement | Within 1 year of Effective Date | 1 |
| 2 | Within 1 year of signing this Agreement | Within 2 years of signing this Agreement | 2 |
| 3 | Within 2 years of signing this Agreement | Within 3 years of signing this Agreement | 3 |
Source: Item 22 — CONTRACTS (FDD page 69)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the Area Development Agreement includes a development schedule that outlines the required timelines for opening Alloy facilities. A key provision of the Area Development Agreement is the requirement to have a specific number of Alloy facilities opened and continuously operating within the Development Territory according to the set schedule.
Specifically, for the second Alloy facility, the Franchise Agreement must be signed within one year of signing the Area Development Agreement. Following that, the second facility must be opened and continuously operating for business within two years of signing the Area Development Agreement.
Alloy emphasizes that only facilities that are actually open and continuously operating for business within the Development Territory by the specified date will count towards meeting the development schedule requirements. This means that franchisees need to manage their development timelines carefully to ensure they meet these obligations.