What is the assumption regarding the number of Alloy Facilities developed when estimating the development fee?

According to Alloy's 2025 Franchise Disclosure Document, the estimated initial investment for an area developer assumes the development of at least two Alloy facilities. This assumption is important because the development fee, which is initially estimated at $110,000, is based on this minimum number of facilities.

If a developer chooses to develop more than two Alloy facilities, the development fee will increase as outlined in Item 5 of the FDD. This indicates that the initial investment figures provided are a baseline for a specific level of development, and prospective developers need to factor in potential increases in the development fee if they plan to expand beyond the minimum requirement.

Therefore, potential area developers should carefully consider their expansion plans and consult Item 5 of the FDD to understand how the development fee scales with the number of facilities they intend to develop. This will allow them to accurately estimate their total initial investment and financial obligations to Alloy.