Under what conditions will Alloy grant a franchise?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
GRANT OF LICENSE
-
- The following provisions control with respect to the license granted hereunder:
- A. Facility. We grant to you the right and license to establish and operate a Facility identified by the ALLOY Trademarks or such other marks as we may direct, at the location identified on the Data Sheet, which location must be designated within 90 days from the date of this Agreement (the "Authorized Location"). The Authorized Location must be located within the area defined in the Data Sheet as the "Designated Area." When a location has been designated by you and approved by us, it will become part of this subparagraph 2.A as if originally stated. If a Facility is not "under control" within 180 days from the date of this Agreement (as defined in subparagraph 5.A), we may grant you an extension of time to locate a Facility or terminate this Agreement. You accept the license and undertake the obligation to operate the Facility using the Trademarks and the System in compliance with the terms and conditions of this Agreement.
- B. Opening. You agree that the Facility will be open and operating in accordance with the requirements of subparagraph 5.A within not later than six months after you sign a lease or 12 months after you sign this Agreement, whichever occurs first, unless we authorize in writing an extension of time.
You may not open your Facility for business until: (1) you have complied with all requirements regarding site selection and construction of the Facility; (2) we determine that your Facility has been constructed, decorated, furnished, equipped and stocked with equipment, materials and supplies in accordance with plans and specifications we have approved; (3) the initial training program we provided has been completed to our satisfaction by all required persons; (4) the initial franchise fee and all other amounts due to us have been paid; (5) you have furnished us
with all certificates of insurance required by this Agreement; (6) you have obtained all required governmental permits, licenses and authorizations necessary for the operation of your Business; (7) you are in full compliance with all the terms of
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, Alloy grants a franchise for the right to establish and operate a facility identified by the Alloy trademarks at a specific location, which must be designated within 90 days of the agreement date. This location must be within the designated area outlined in the Data Sheet. Once Alloy approves the location, it becomes part of the agreement.
To open the Alloy facility, the franchisee must meet several conditions. These include complying with site selection and construction requirements, ensuring the facility is constructed and equipped according to Alloy's approved plans, completing the initial training program to Alloy's satisfaction, paying all due fees, providing required insurance certificates, and obtaining all necessary governmental permits and licenses. The facility must be open and operating within six months after signing a lease or 12 months after signing the agreement, unless Alloy provides a written extension.
If a suitable location isn't secured within 180 days, Alloy may either grant an extension or terminate the agreement. Alloy retains all rights not expressly granted to the franchisee and can establish or license others to establish Alloy facilities at any location, regardless of proximity to the franchisee's designated area. Alloy can also engage in merger/acquisition activity with other businesses, which may then operate under Alloy's trademarks.