Does the use of a general manager relieve the Alloy franchisee of their obligations under the Franchise Agreement?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
PERSONNEL AND SUPERVISION STANDARDS
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- The following provisions and conditions control with respect to personnel, training and supervision:
- A. Supervision. During the term of this Agreement, you (if Franchisee is an individual), or your Operating Partner (if Franchisee is a legal entity), or your Facility's general manager must devote full time and best efforts to the management and operation of your Facility and provide direct, on-site supervision of the Facility. Any general manager or replacement manager(s) you hire must complete our training as described in subparagraphs 7.B – 7.E. Any general manager(s) or replacement manager(s) you hire must meet the applicable training requirements. The use of a general manager in no way relieves you of your obligations to comply with this Agreement and to ensure that the Facility is properly operated.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, hiring a general manager does not relieve the franchisee of their obligations to comply with the Franchise Agreement and ensure the Alloy facility is properly operated. The franchisee, or their Operating Partner if the franchisee is a legal entity, or the facility's general manager must devote full time and best efforts to the management and operation of the facility and provide direct, on-site supervision.
Any general manager or replacement manager hired by the Alloy franchisee must complete Alloy's prescribed training program. The franchisee is responsible for ensuring that all employees, including the general manager, are properly trained to meet Alloy's operational standards. If a franchisee is given a notice of default for failing to meet operational standards, Alloy has the right to require the franchisee and their manager to comply with additional training requirements at the franchisee's expense as a condition of curing the default.
Alloy emphasizes that franchisees cannot permit the regular management of the facility by someone who has not successfully completed all required training to Alloy's satisfaction. This ensures that the Alloy system's standards are maintained, regardless of whether the franchisee directly manages the location or delegates those responsibilities to a general manager.