Under what circumstances is the Virginia Addendum to the Franchise Agreement required for an Alloy franchise?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
This Addendum between Alloy Personal Training, LLC ("Franchisor") and to the Franchise Agreement ("Franchisee" ("Franchise or "you") is Agreement") entered dated into simultaneously with the execution of the Franchise Agreement. The provisions of this Addendum form an integral part of, and are incorporated into the Franchise Agreement. This Addendum is being executed because: (a) the offer or sale of the franchise to Franchisee was made in the State of Virginia; (b) Franchisee is a resident of the State of Virginia; and/or (c) the franchised business will be located or operated in the State of Virginia. Section 9.A, Initial Franchise Fee, is amended to include the following statement: The Virginia State Corporation Commission's Division of Securities and Retail Franchising requires us to defer payment of the initial franchise fee and other initial payments owed by franchisee to the franchisor until the franchisor has completed its pre-opening obligations under the franchise agreement. Except as expressly modified by this Addendum, the Franchise Agreement remains unmodified and in full force and effect. The undersigned Franchisee does hereby acknowledge receipt of this Addendum. 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 Addendum to the Franchise Agreement is required for Virginia franchisees under specific circumstances. The addendum is necessary if (a) the offer or sale of the franchise was made in Virginia, (b) the franchisee is a resident of Virginia, or (c) the franchised business will be located or operated in Virginia. This ensures compliance with Virginia state laws and regulations.
The Virginia Addendum modifies the standard Franchise Agreement to comply with the Virginia State Corporation Commission's Division of Securities and Retail Franchising requirements. Specifically, it mandates that the initial franchise fee and other initial payments are deferred until Alloy has fulfilled its pre-opening obligations under the franchise agreement. This provision protects the franchisee by ensuring that they do not pay the full initial franchise fee before Alloy has provided the necessary support and services to get the business up and running.
This addendum becomes an integral part of the Franchise Agreement for Virginia franchisees. It's important to note that except for the specific modifications outlined in the addendum, all other terms and conditions of the original Franchise Agreement remain in full force and effect. Prospective Alloy franchisees in Virginia should carefully review this addendum to understand their rights and obligations under Virginia law, particularly regarding the payment of initial fees.