Can Alloy seek injunctive relief if a franchisee fails to comply with their obligations?

According to Alloy's 2025 Franchise Disclosure Document, Alloy is entitled to seek injunctive relief or specific performance if a franchisee fails to comply with their obligations. Specifically, this applies to the franchisee's failure to comply with pre-opening obligations. This means Alloy can pursue a court order to compel a franchisee to fulfill these obligations or to prevent them from acting in a way that violates the franchise agreement.

Injunctive relief is a legal remedy where a court orders a party to do or refrain from doing specific acts. In the context of a franchise agreement, this could mean compelling a franchisee to adhere to facility standards, operational procedures, or other contractual requirements. Specific performance is a similar remedy that compels a party to fulfill the exact terms of a contract.

For a prospective Alloy franchisee, this clause underscores the importance of understanding and meeting all pre-opening obligations. Failure to do so not only risks potential legal action but also highlights Alloy's commitment to maintaining brand standards and uniformity across all franchise locations. This also protects Alloy and its brand standards.