Under the Alloy Area Development Agreement, what information must a developer provide regarding potential sites for Alloy Facility locations?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
The Site Selection information included in this section apply to a site for your Franchised Business under a Franchise Agreement and each of the locations that you develop under your Development Agreement (as we will approve the location for future outlets using our then-current criteria, which may change over the years (the current criteria and process are noted below). Within 180 days after you sign the Franchise Agreement, you must locate a site for your Franchised Business, obtain our acceptance of the proposed site, and enter into a lease, sublease or purchase agreement for the approved site. You may engage with our preferred real estate vendors to assist you in the search of your Alloy site. You must submit to us the information and materials we may reasonably require to allow us to review the proposed site. We generally do not own the premises and lease it to you. The factors which we consider in accepting your location include the size and location of the premises, population in the immediate area and/or median household income, the lease terms for the premises, availability of parking and ease of access, types of businesses in close proximity to the premises, competition from similar businesses and other similar factors.
We will have 30 days after receiving all information we require concerning the proposed site to notify you whether the site is accepted or not. If we do not provide our specific acceptance of a location within this 30 day period, the location is deemed not accepted. Our acceptance only indicates that the site meets our minimum criteria for a Facility. If you are unable to obtain possession of a suitable site for your Franchised Business by lease, sublease or purchase agreement within six months after you sign the Franchise Agreement, we may provide you with an extension of this timeframe or we may terminate your Franchise Agreement. We utilize this same process for each Facility you are obligated to develop under an Area Development Agreement.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 31–42)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, a developer must provide information regarding potential sites for Alloy Facility locations to allow Alloy to determine if the sites meet their standards and criteria. Alloy will review this information to decide whether to accept the site for a Facility.
Specifically, within 180 days of signing the Franchise Agreement, the franchisee must locate a site, gain Alloy's acceptance, and secure a lease, sublease, or purchase agreement. Alloy may provide preferred real estate vendors to assist in the site search. The franchisee must submit all information and materials reasonably required by Alloy to review the proposed site.
Alloy considers factors such as the size and location of the premises, population and median household income in the area, lease terms, parking availability, ease of access, nearby businesses, and competition. Alloy has 30 days to approve or reject a site after receiving all required information. Failure to provide specific acceptance within this period means the site is not accepted. If a suitable site cannot be secured within six months of signing the Franchise Agreement, Alloy may grant an extension or terminate the agreement. This process applies to each Facility developed under an Area Development Agreement.