Under what circumstances is this Alloy rider being signed?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
This Rider to State Addendum to ALLOY® Franchise Disclosure Document ("FDD"), Franchise Agreement and/or Area Development Agreement (if applicable) is entered into by and between Alloy Personal Training, LLC, 2500 Old Alabama Road, Suite 24, Roswell, Georgia 30076 ("we" or "us") and ("you"). A. This Rider is being signed because you are a resident of one of the states listed in the heading of this Rider (the "Applicable Franchise Registration State") or a non-resident who is acquiring franchise rights permitting the location of one or more ALLOY® businesses in the Applicable Franchise Registration State. B. We and you have contemporaneously herewith entered into a Franchise Agreement (the "Agreement") and/or an Area Development Agreement (if applicable) and wish to amend the Agreement as provided herein. NOW, THEREFORE, for and in consideration of good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the FDD and Agreement and Area Development Agreement (if applicable) are hereby amended as follows: 1. The following language is hereby added to the end of the FDD, Agreement and Area Development Agreement (if applicable): "No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise." 2. Except as provided in this Rider, the Agreement and Area Development Agreement remains in full force and effect in accordance with its terms. This Rider shall be effective only to the extent that the jurisdictional requirements of the franchise law of the Applicable Franchise Registration State are met independently without reference to this Rider. YOU: WE: ALLOY PERSONAL TRAINING, LLC
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the rider to the Franchise Disclosure Document, Franchise Agreement, and Area Development Agreement is signed under specific circumstances related to the franchisee's location. This rider is applicable if the franchisee is a resident of or is acquiring franchise rights in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin.
The rider serves to amend the Franchise Agreement and/or Area Development Agreement, ensuring that franchisees in these states receive specific protections under applicable state franchise laws. Specifically, it prevents any statement, questionnaire, or acknowledgment from waiving claims related to state franchise law, including fraud in the inducement, or disclaiming reliance on statements made by Alloy or its representatives.
This provision is crucial for prospective Alloy franchisees as it reinforces their rights and protections under state franchise laws, preventing them from inadvertently waiving these rights during the franchise relationship's commencement. It also ensures that franchisees can rely on the information provided by Alloy without fear of disclaimers that might undermine that reliance. This rider is effective only to the extent that the jurisdictional requirements of the franchise law of the Applicable Franchise Registration State are met independently without reference to this Rider.