Upon termination of the Alloy Franchise Agreement, is the franchisee required to pay all sums due to Alloy's affiliates or designees?

According to Alloy's 2025 Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, the franchisee must pay all sums owing to Alloy and its affiliates within 30 days of the termination or expiration date. This means that if a franchisee owes any money to Alloy or any of its affiliated companies at the time the agreement ends, they are obligated to settle those debts promptly.

This requirement is fairly standard in franchising, as franchisors want to ensure that all financial obligations are met before a franchisee exits the system. It's important for prospective Alloy franchisees to understand this obligation and to maintain good financial standing throughout the term of their agreement. Failure to pay outstanding amounts could lead to legal action or other consequences.

Franchisees should keep detailed records of all payments and transactions with Alloy and its affiliates to avoid disputes upon termination. It is also advisable to seek legal and financial counsel to fully understand the implications of this clause and to ensure compliance with all terms of the Franchise Agreement.