After termination of the Alloy Franchise Agreement, is the franchisee required to assign their lease for the Facility to Alloy?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Upon termination or expiration of this Agreement, all rights granted to you will automatically terminate, and:
- C. Except as specifically permitted under any then-effective Franchise Agreement, you must take such action as may be necessary to cancel or assign to us or our designee, at our option, any assumed name or equivalent registration that contains the name or any of the words ALLOY or any other Trademark of ours, and you must furnish us with evidence satisfactory to us of compliance with this obligation within 30 days after termination or expiration of this Agreement.
- D. Except as specifically permitted under any then-effective Franchise Agreement, you must assign to us or our designee all your right, title, and interest in and to your telephone numbers and must notify the telephone company and all listing agencies of the termination or expiration of your right to use any telephone number in any regular, classified or other telephone directory listing associated with the Trademarks and to authorize transfer of same at our direction.
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Access to Premises Following Expiration or Termination of Lease.
Upon the expiration or termination of the Lease, Landlord will cooperate with and assist Franchisor in gaining possession of the Premises and, if Franchisor does not elect to assume the Lease for the Premises consistent with paragraphs 3 or 4 above, Landlord will allow Franchisor to enter the Premises, without being guilty of trespass and without incurring any liability to Landlord except for any damages caused by Franchisor's willful misconduct or gross negligence, to remove all signs and all other items identifying the Premises as an ALLOY Facility and to make such other modifications (such as repainting) as are reasonably necessary to protect the ALLOY Marks and System, and to distinguish the Premises from ALLOY Facilities.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to the 2025 Alloy Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, the franchisee must assign to Alloy or its designee, at Alloy's option, any assumed name or equivalent registration that contains the name or any of the words ALLOY or any other Trademark of Alloy. This assignment must occur within 30 days after termination or expiration of the Agreement. Additionally, the franchisee must assign to Alloy or its designee all rights, title, and interest in and to telephone numbers associated with the Trademarks and authorize the transfer of these numbers at Alloy's direction.
Specifically regarding the lease, the FDD states that upon the expiration or termination of the lease, the Landlord will cooperate with and assist Alloy in gaining possession of the Premises. If Alloy does not elect to assume the lease, the Landlord will allow Alloy to enter the Premises to remove signs and other items identifying the Premises as an Alloy Facility and to make modifications to protect the Alloy Marks and System.
These provisions ensure that Alloy maintains control over its brand identity and operational standards even after a franchise agreement terminates. The franchisee is obligated to take specific actions to disassociate from the Alloy brand, allowing Alloy to protect its trademarks and system standards. This includes the potential assignment of the business's name and phone numbers to Alloy, as well as Alloy's right to access the premises to remove branding elements if they do not assume the lease.