In the event of a dispute, what is each party limited to recovering from Alloy?

According to Alloy's 2025 Franchise Disclosure Document, franchisees, their owners, and guarantors are limited in the time they have to assert claims against Alloy or its affiliates. Specifically, any claim or cause of action relating to the Franchise Agreement or the Alloy business must be brought within the shorter of either the applicable statute of limitations or one year from when the facts giving rise to the claim were discovered, or should have been discovered.

However, there is an exception: if the one-year limitation is prohibited or invalid under applicable law, the claim must be commenced within the applicable statute of limitations. This means that depending on the jurisdiction, a franchisee may have a longer period to bring a claim if the local laws do not allow for such a short limitation period.

This provision has significant implications for prospective Alloy franchisees. It is crucial to understand the statute of limitations in the relevant jurisdiction and to act promptly if any issues arise that could lead to a claim against Alloy. Failure to do so within the specified timeframe could result in the claim being barred, regardless of its merits. Franchisees should consult with legal counsel to fully understand their rights and obligations under the Franchise Agreement and applicable laws.