Within how many days from the Alloy agreement date must the Authorized Location be designated?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Facility. We grant to you the right and license to establish and operate a Facility identified by the ALLOY Trademarks or such other marks as we may direct, at the location identified on the Data Sheet, which location must be designated within 90 days from the date of this Agreement (the "Authorized Location"). The Authorized Location must be located within the area defined in the Data Sheet as the "Designated Area." When a location has been designated by you and approved by us, it will become part of this subparagraph 2.A as if originally stated. If a Facility is not "under control" within 180 days from the date of this Agreement (as defined in subparagraph 5.A), we may grant you an extension of time to locate a Facility or terminate this Agreement. You accept the license and undertake the obligation to operate the Facility using the Trademarks and the System in compliance with the terms and conditions of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to the 2025 FDD, Alloy requires that the Authorized Location, or the physical site of the franchise, be designated within 90 days from the date of the Franchise Agreement. This means a prospective franchisee has a limited window to find and secure a location that meets Alloy's standards after signing the agreement.
This requirement puts pressure on the franchisee to act quickly. Failing to designate a location within the 90-day timeframe could potentially lead to complications or even termination of the agreement, although Alloy may grant an extension. The FDD states that if a Facility is not "under control" within 180 days from the date of the agreement, Alloy may grant an extension or terminate the agreement.
It is important for potential Alloy franchisees to understand the site selection guidelines and begin researching potential locations even before signing the Franchise Agreement. This preparation can help ensure they are able to meet the 90-day deadline and avoid any potential issues with Alloy. Furthermore, the franchisee must have the site approved by Alloy, adding another layer to the site selection process.