Who selects legal counsel to represent Alloy's interests in the event of a Franchise Claim?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
If a Franchise Claim is made against us or our affiliates, we reserve the right in our sole judgment to select our own legal counsel to represent our interests, at your cost.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, in the event of a Franchise Claim against Alloy or its affiliates, Alloy reserves the right to select its own legal counsel to represent its interests. The franchisee is responsible for covering the costs of this legal representation.
This means that if a claim arises, such as one involving personal injury or property damage, Alloy has the authority to choose the legal team that will defend its position. The franchisee will ultimately bear the financial burden of Alloy's legal expenses in these situations.
This arrangement is not uncommon in franchising, as franchisors often want to maintain control over legal matters that could affect the brand and its reputation. However, it's crucial for prospective Alloy franchisees to understand that they could be responsible for significant legal costs if a claim arises, even if they are not directly at fault. Franchisees should factor this potential expense into their financial planning and consider obtaining adequate insurance coverage to mitigate this risk.