Are there any restrictions on where client business may be generated for an Alloy franchise?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
The license is limited to the right to develop and operate one Facility at the Authorized Location only. During the term of this Agreement and provided that you are in compliance with the terms and conditions of this Agreement, including the Minimum Performance Standards (as described in the Data Sheet), we will not (i) modify the Territory without your written permission, or (ii) establish either a company-owned or franchised Facility with its actual, physical premises within the Designated Area.
The license granted to you does not include (i) any right to offer, sell or otherwise provide services or products outside the Facility, unless we authorize in writing, (ii) any right to offer, sell or otherwise provide services or products through any other channels or methods of distribution, including the Internet (or any other existing or future form of electronic commerce), (iii) any right to offer, sell or otherwise provide services or products identified by the Trademarks to any person or entity for resale or further distribution, or (iv) any right to exclude, control or impose conditions on our development of future franchised, company or affiliate owned facilities at any time or at any location regardless of the proximity to your Facility. As of the Effective Date, there are no restrictions or limitations from where client business may be generated, although you may not directly solicit customers outside your Designated Area. We may establish from time to time written guidelines regarding the territorial scope of your marketing activities. You agree to comply with any such guidelines.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, there are some restrictions regarding where client business may be generated. While there are no limitations on where client business can originate, franchisees are prohibited from directly soliciting customers outside their Designated Area. Alloy may also establish written guidelines regarding the territorial scope of marketing activities, which franchisees must comply with.
Alloy's rights are reserved, and the license granted to franchisees is limited to operating one facility at the Authorized Location. Unless authorized in writing by Alloy, franchisees cannot offer or sell services or products outside the Facility or through other distribution channels, including the Internet. They also cannot offer or sell services or products identified by the Trademarks for resale or further distribution.
Alloy retains the right to develop future franchised, company, or affiliate-owned facilities at any time or location, regardless of proximity to a franchisee's Facility. This means that while franchisees can generally attract clients from any location, their marketing efforts may be geographically restricted, and Alloy can establish competing facilities nearby.