Under what conditions will a modification, consent, approval, authorization, or waiver be considered valid under the Alloy Franchise Agreement?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
val will not be withheld unreasonably. You immediately must notify us of any proposed transfer and must submit promptly to us the application for consent to transfer and any other required documents and information. Any attempted transfer by you without our prior written consent or otherwise not in compliance with the terms of this Agreement will be void, your interest in this Agreement will be voluntarily abandoned, and it will provide us with the right to elect either to deem you in default and terminate this Agreement or to collect from you and the guarantors a transfer fee equal to two times the transfer fee provided for in subparagraph 11.C.
- C. Transfer Fee. You must pay to us a transfer fee in the amount of $10,000. The transfer fee is nonrefundable even if, for any reason, the proposed transfer does not occur.
- D. Conditions of Transfer. We condition our consent to any proposed transfer, whether to an individual, a corporation, a partnership or any other entity upon the following:
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- 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.
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- Payment of Amounts Owed.
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Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
Based on the 2025 Alloy Franchise Disclosure Document, any attempted transfer by a franchisee without Alloy's prior written consent, or if it doesn't comply with the terms of the agreement, will be considered void. In such a case, the franchisee's interest in the agreement will be treated as voluntarily abandoned, giving Alloy the right to either terminate the agreement due to default or collect a transfer fee equal to two times the standard transfer fee.
Alloy conditions its consent to any proposed transfer, whether to an individual, corporation, partnership, or any other entity, on several factors. The assignee must meet all of Alloy's then-current requirements for franchisees at the time of the proposed transfer and must sign Alloy's then-current form of franchise agreement, modified to reflect the remaining term of the original agreement.
Furthermore, all amounts owed by the franchisee to Alloy, its affiliates, suppliers, or any landlord for the Facility premises must be paid in full. The franchisee must also have provided all required reports to Alloy. Finally, the franchisee must have complied with the modernization provisions outlined in the agreement.