Within how many days after signing the Alloy Franchise Agreement must a site be located, accepted, and a lease/purchase agreement entered into?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
Within 180 days after you sign the Franchise Agreement, you must locate a site for your Franchised Business, obtain our acceptance of the proposed site, and enter into a lease, sublease or purchase agreement for the approved site. You may engage with our preferred real estate vendors to assist you in the search of your Alloy site. You must submit to us the information and materials we may reasonably require to allow us to review the proposed site. We generally do not own the premises and lease it to you. The factors which we consider in accepting your location include the size and location of the premises, population in the immediate area and/or median household income, the lease terms for the premises, availability of parking and ease of access, types of businesses in close proximity to the premises, competition from similar businesses and other similar factors.
We will have 30 days after receiving all information we require concerning the proposed site to notify you whether the site is accepted or not. If we do not provide our specific acceptance of a location within this 30 day period, the location is deemed not accepted. Our acceptance only indicates that the site meets our minimum criteria for a Facility. If you are unable to obtain possession of a suitable site for your Franchised Business by lease, sublease or purchase agreement within six months after you sign the Franchise Agreement, we may provide you with an extension of this timeframe or we may terminate your Franchise Agreement. We utilize this same process for each Facility you are obligated to develop under an Area Development Agreement.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 31–42)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, a prospective franchisee has 180 days from the date of signing the Franchise Agreement to locate a site for their Alloy Franchised Business, secure Alloy's acceptance of the site, and finalize a lease, sublease, or purchase agreement for the approved location.
Alloy retains significant control over site selection. The franchisee must submit all required information and materials for Alloy's review. Alloy then has 30 days to notify the franchisee of their decision. Failure to provide specific acceptance within this 30-day period is considered a rejection of the site. Alloy's acceptance indicates only that the site meets their minimum criteria.
If a franchisee fails to secure a suitable site within six months (180 days) of signing the Franchise Agreement, Alloy has the option to grant an extension or terminate the agreement. This clause highlights the importance of proactive site selection and the potential risk of termination if a location cannot be secured within the specified timeframe. Prospective franchisees should carefully consider the site selection process and Alloy's criteria to mitigate this risk.