Is there a specific location where the 'ACKNOWLEDGEMENT OF PRINCIPAL' section of the Alloy franchise agreement must be signed?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
Schedule E to the Franchise Agreement
ACKNOWLEDGMENT ADDENDUM TO ALLOY FRANCHISE AGREEMENT
THIS ACKNOWLEDGEMENT ADDENDUM DOES NOT APPLY TO CANDIDATES LOCATED IN OR BUSINESSES TO BE LOCATED IN ANY OF THE FOLLOWING FRANCHISE REGISTRATION STATES: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI.
As you know, you and we are entering into a Franchise Agreement for the operation of an ALLOY franchise. Please review each of the following questions carefully and provide honest responses to each question.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to the 2025 Alloy Franchise Disclosure Document, the 'Acknowledgment Addendum' does not apply to candidates or businesses located in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin. For franchisees in all other states, the document does not specify a particular location for signing the 'Acknowledgment of Principal' section. However, for franchisees in Illinois and Minnesota, there are specific addenda that address compliance with state statutes and regulations, potentially influencing how agreements are acknowledged and enforced.
For franchisees in Virginia, the Virginia State Corporation Commission's Division of Securities and Retail Franchising requires Alloy to defer payment of the initial franchise fee and other initial payments until Alloy has completed its pre-opening obligations under the franchise agreement. This requirement is included as an amendment to Section 9.A, Initial Franchise Fee, in the Virginia addendum. This suggests that the signing and acknowledgement process may be tied to the fulfillment of pre-opening obligations in Virginia.
Given these state-specific stipulations, it is essential for prospective Alloy franchisees to carefully review any state-specific addenda to the franchise agreement. These addenda may contain modifications or clarifications regarding acknowledgements, waivers, or other legal requirements that could affect the franchisee's rights and obligations. Franchisees should consult with a legal professional to ensure full compliance with all applicable laws and regulations in their state.