Can the terms of the renewal agreement for an Alloy franchise differ from the original agreement?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
15.P below and the Data Sheet and ends 10 years from the date of this Agreement, subject to any modifications in the Data Sheet to take into account the term of the lease for your Authorized Location.
- B. Renewal. You will have the option to renew your rights under this Agreement for one (1) renewal term of 10 years. We may grant you the option to enter into a renewal agreement for your Facility provided that with respect to the renewal agreement: (i) you have given us written notice of your intent to enter into a renewal agreement at least 6 months but not more than 12 months prior to the end of the expiring term; (ii) you sign our then-current form of franchise agreement (modified to reflect that the agreement relates to a renewal agreement), the terms of which may differ from this Agreement, including higher fees; (iii) you have complied with the provisions of subparagraph 5.E regarding modernization and you perform any further items of modernization and/or replacement of the building, premises, trade dress, equipment and grounds as may be necessary for your Facility to conform to the standards then applicable to new ALLOY facilities, regardless of the cost of such modernizations and/or replacements; (iv) you are not in default of this Agreement or any other agreement pertaining to the franchise granted, you have not been in default of this Agreement on three or more occasions during the term of this Agreement, regardless of whether any cure has been effectuated, have satisfied all monetary and material obligations on a timely basis during the term, and are in good standing; (v) if leasing the Facility premises, you have renewed the lease and have provided written proof of your ability to remain in possession of the premises throughout the renewal pe
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the terms of the renewal agreement may differ from the original franchise agreement. Alloy offers franchisees the option to renew their franchise agreement for one additional term of 10 years. However, this renewal is not automatic and is subject to several conditions.
One key condition is that franchisees must sign Alloy's then-current form of franchise agreement, which may have terms that differ from the original agreement. These differences can include higher fees. Additionally, Alloy may require franchisees to perform modernizations or replacements to ensure the facility conforms to the standards applicable to new Alloy facilities at the time of renewal, regardless of the cost.
To qualify for renewal, franchisees must provide written notice of their intent to renew at least 6 months but not more than 12 months before the current term expires. They must also be in good standing, meaning they are not in default of the agreement, have not been in default on three or more occasions, and have satisfied all monetary and material obligations. Furthermore, franchisees must renew their facility lease, meet Alloy's current training requirements, pay a $5,000 renewal fee, and execute a general release of claims. These conditions ensure that Alloy can update its franchise agreements and maintain brand standards while also providing franchisees with the opportunity to continue operating under the Alloy brand.