Under the Alloy Franchise Agreement, what specific rights are waived regarding trial by jury?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
Item 17
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- The Franchise Agreement contains a waiver of punitive damages and jury trial provision. These provisions may not be enforceable under California law.
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- The franchise agreement requires binding arbitration. The arbitration will occur at Indianapolis, Indiana with the costs being borne by the non-prevailing party. You are encouraged
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the Franchise Agreement contains a waiver of the jury trial provision. This means that franchisees in the Alloy system may be giving up their right to have a trial by jury in the event of a dispute with the franchisor. However, this provision may not be enforceable under California law.
It is important for a prospective Alloy franchisee to understand the implications of waiving the right to a jury trial. Jury trials can be more expensive and time-consuming than other forms of dispute resolution, such as arbitration. However, they also offer the potential for a more favorable outcome for the franchisee, as a jury may be more sympathetic to their case than an arbitrator.
Prospective franchisees should consult with an attorney to determine whether the jury trial waiver is enforceable in their state and to understand the potential risks and benefits of waiving this right. They should also consider negotiating with Alloy to remove the jury trial waiver from the Franchise Agreement. Franchisees should be aware that the arbitration will occur at Indianapolis, Indiana with the costs being borne by the non-prevailing party.