What standards and criteria does Alloy use to determine if a potential site is suitable for an Alloy Facility?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
The Site Selection information included in this section apply to a site for your Franchised Business under a Franchise Agreement and each of the locations that you develop under your Development Agreement (as we will approve the location for future outlets using our then-current criteria, which may change over the years (the current criteria and process are noted below). Within 180 days after you sign the Franchise Agreement, you must locate a site for your Franchised Business, obtain our acceptance of the proposed site, and enter into a lease, sublease or purchase agreement for the approved site. You may engage with our preferred real estate vendors to assist you in the search of your Alloy site. You must submit to us the information and materials we may reasonably require to allow us to review the proposed site. We generally do not own the premises and lease it to you. The factors which we consider in accepting your location include the size and location of the premises, population in the immediate area and/or median household income, the lease terms for the premises, availability of parking and ease of access, types of businesses in close proximity to the premises, competition from similar businesses and other similar factors.
We will have 30 days after receiving all information we require concerning the proposed site to notify you whether the site is accepted or not. If we do not provide our specific acceptance of a location within this 30 day period, the location is deemed not accepted. Our acceptance only indicates that the site meets our minimum criteria for a Facility. If you are unable to obtain possession of a suitable site for your Franchised Business by lease, sublease or purchase agreement within six months after you sign the Franchise Agreement, we may provide you with an extension of this timeframe or we may terminate your Franchise Agreement. We utilize this same process for each Facility you are obligated to develop under an Area Development Agreement.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 31–42)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the company considers several factors when evaluating a potential site for a new franchise. These factors include the size and location of the premises, population and median household income in the immediate area, and the lease terms. Alloy also assesses the availability of parking, ease of access, the types of businesses nearby, and competition from similar businesses. Alloy states that the criteria they use to approve locations for future outlets may change over time.
Within 180 days of signing the Franchise Agreement, franchisees must find a site and secure Alloy's approval, along with a lease or purchase agreement. Franchisees can use Alloy's preferred real estate vendors to help with the site search. Franchisees must submit all required information and materials for Alloy to review the proposed site. Alloy then has 30 days to approve or reject the site. If Alloy doesn't respond within 30 days, the site is considered not accepted.
Alloy's acceptance of a site only means that it meets the minimum criteria for a Facility. If a franchisee cannot secure a suitable site within six months of signing the Franchise Agreement, Alloy may offer an extension or terminate the agreement. This same process is used for each Facility developed under an Area Development Agreement. Alloy also considers population and/or median income in the surrounding area, size and cost of the facility, and other factors based on Alloy's business judgment.