What are the transfer conditions for an Alloy franchise as described in subparagraph 11.D?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
We condition our consent to any proposed transfer, whether to an individual, a corporation, a partnership or any other entity upon the following:
Assignee Requirements.
The assignee must meet all of our then-current requirements for our ALLOY franchise program we are offering at the time of the proposed transfer and sign our then-current form of franchise agreement modified to reflect the term remaining under this Agreement.
Payment of Amounts Owed.
All amounts owed by you to us, or any of our affiliates, your suppliers or any landlord for the Facility premises and Facility, or upon which we or any of our affiliates have any contingent liability must be paid in full.
Reports.
You must have provided all required reports to us in accordance with subparagraphs 9.H and I.
Modernization.
You must have complied with the provisions of subparagraph 5.E.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, subparagraph 11.D outlines the conditions that Alloy places on its consent for any proposed franchise transfer. These conditions apply whether the transfer is to an individual, a corporation, a partnership, or any other entity.
The first condition is that the assignee (the party to whom the franchise is being transferred) must meet all of Alloy's then-current requirements for new franchisees. This includes signing Alloy's then-current form of franchise agreement, modified to reflect the remaining term of the original agreement. This ensures that the new franchisee is held to the same standards and obligations as any new franchisee joining the Alloy system.
Additional conditions include the payment of all outstanding amounts owed by the current franchisee to Alloy, its affiliates, suppliers, or the landlord of the facility premises. The franchisee must also have provided all required reports to Alloy and complied with modernization requirements as detailed in other subparagraphs of the agreement. These stipulations ensure that the franchise is in good standing financially and operationally before it is transferred.
These conditions are typical in franchising, as franchisors want to ensure that any new franchisee meets their standards and that all financial obligations are settled before a transfer occurs. This protects the brand and the interests of other franchisees in the system.