Is there an exception to the requirement to cancel or assign assumed names containing the Alloy name after termination?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, franchisees are generally required to cancel or assign any assumed names containing the Alloy name or trademarks after the termination or expiration of their Franchise Agreement. However, there is an exception to this rule.
The FDD specifies that this requirement does not apply if it is specifically permitted under any then-effective Franchise Agreement. This means that if a franchisee has an existing, valid Franchise Agreement that contains specific provisions allowing them to continue using the Alloy name or trademarks even after termination, they may be exempt from the standard requirement to cancel or assign those names.
This exception provides some flexibility for franchisees in certain situations, but it's crucial for prospective franchisees to carefully review their Franchise Agreement to understand whether such exceptions apply to them. Franchisees should seek legal counsel to fully understand the implications of these provisions and how they might affect their rights and obligations upon termination or expiration of the agreement.