Does the Alloy franchise agreement grant the right to operate a facility at the authorized location only?

designs, color schemes and image we authorize you to use in the operation of the Facility from time to time.

GRANT OF LICENSE

• 1. The following provisions control with respect to the license granted hereunder:
• 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.
• B. Opening. You agree that the Facility will be open and operating in accordance with the requirements of subparagraph 5.A within not later than six months after you sign a lease or 12 months after you sign this Agreement, whichever occurs first, unless we authorize in writing an extension of time.

You may not open your Facility for business until: (1) you have complied with all requirements regarding site selection and construction of the Facility; (2) we determine that your Facility has been constructed, decorated, furnished, equipped and stocked with equipment, materials and supplies in accordance with plans and specifications we have approved; (3) the initial training program we provided has been completed to our satisfaction by all required persons; (4) the initial franchise fee and all other amounts due to us have been paid; (5) you have furnished us

with all certificates of insurance required by this Agreement; (6) you have obtained all required governmental permits, licenses and authorizations necessary for the operation of your Business; (7) you are in full compliance with all the terms of this Agreement; and (8) you have 75 members who have joined during the pre-sale marketing campaign, including a signed membership agreement and a verified credit card on file.

C. Nonexclusivity; Our Reservation of Rights. The license is limited to the right to develop and operate one Facility at the Authorized Location only. During the term of this Agreement and provided that you are in compliance with the terms and conditions of this Agreement, including the Minimum Performance Standards (as described in the Data Sheet), we will not (i) modify the Territory without your written permission, or (ii) establish either a company-owned or franchised Facility with its actual, physical premises within the Designated Area.

Source: Item 23 — RECEIPTS (FDD pages 69–245)