Under what conditions can Alloy terminate the Franchise Agreement after an opportunity to cure?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Termination by Us. We have the right to terminate this Agreement in accordance with the following provisions:
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- Termination After Opportunity to Cure. Except as otherwise provided in this subparagraph 13.B or elsewhere in the Agreement: (i) you will have 30 days from the date of our issuance of a written notice of default to cure any default under this Agreement, other than a failure to pay amounts due or submit required reports, in which case you will have 10 days to cure those defaults; (ii) your failure to cure a default within the 30-day or 10-day period will provide us with good cause to terminate this Agreement; (iii) the termination will be accomplished by mailing or delivering to you written notice of termination that will identify the grounds for the termination; and (iv) the termination will be effective immediately upon our issuance of the written notice of termination.
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Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, Alloy can terminate the Franchise Agreement if the franchisee fails to cure a default within a specified time frame after receiving written notice. Specifically, the franchisee typically has 30 days to correct any default outlined in the agreement. However, if the default involves a failure to pay amounts due or submit required reports, the franchisee only has 10 days to cure the default.
If the franchisee does not fix the default within the applicable 10-day or 30-day period, Alloy has grounds to terminate the agreement. To do so, Alloy must provide written notice of termination, specifying the reasons for the termination. The termination becomes effective immediately upon the franchisee receiving this written notice.
It is important for prospective Alloy franchisees to understand these conditions, as failure to meet the obligations outlined in the franchise agreement, especially regarding payments and reporting, can lead to swift termination if not addressed promptly. Franchisees should maintain open communication with Alloy to address any potential issues and ensure compliance with the agreement terms to avoid termination.