What section of the Alloy Franchise Agreement is specifically amended by the Virginia Addendum?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 9.A, Initial Franchise Fee, is amended to include the following statement: The Virginia State Corporation Commission's Division of Securities and Retail Franchising requires us to defer payment of the initial franchise fee and other initial payments owed by franchisee to the franchisor until the franchisor has completed its pre-opening obligations under the franchise agreement. Except as expressly modified by this Addendum, the Franchise Agreement remains unmodified and in full force and effect.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the Virginia Addendum specifically amends Section 9.A, Initial Franchise Fee, of the Franchise Agreement. This amendment includes a statement mandated by the Virginia State Corporation Commission's Division of Securities and Retail Franchising. This statement requires Alloy to defer payment of the initial franchise fee and other initial payments from the franchisee until Alloy has fulfilled its pre-opening obligations as outlined in the Franchise Agreement.
This amendment ensures that franchisees in Virginia are not required to pay the initial franchise fee before Alloy has met its obligations to prepare the franchisee for opening. This provides a level of financial protection for the franchisee, aligning with the regulatory requirements in Virginia.
Except for this specific modification to Section 9.A, the Virginia Addendum explicitly states that the rest of the Franchise Agreement remains in full force and effect. This means that all other sections and terms of the agreement apply as originally written, providing clarity and legal certainty for both Alloy and the franchisee.