When does the Alloy Franchise Agreement term expire, assuming it is not terminated earlier?

According to Alloy's 2025 Franchise Disclosure Document, the Development Agreement, not the Franchise Agreement, has a specific term length. Unless terminated earlier, the Development Agreement and all rights granted to the franchisee will expire on the date that the last Alloy facility is scheduled to be opened under the Development Schedule.

This means that the term of the Development Agreement is tied directly to the franchisee's commitment to open Alloy facilities according to an agreed-upon schedule. The franchisee must adhere to the Development Schedule to maintain their rights under the Development Agreement. If the franchisee fails to meet the schedule, Alloy has the right to terminate the agreement early.

It is important to note that each Alloy facility operates under a separate Franchise Agreement, the terms of which dictate the continued existence of that specific franchise. The Development Agreement grants the franchisee the right to develop facilities within a specific territory, but the actual operation of each facility is governed by its own Franchise Agreement. The Development Agreement is not a Franchise Agreement, and it does not grant the franchisee the right to use Alloy's trademarks or operate an Alloy facility.

Alloy also offers an option to renew the rights under the Development Agreement for one additional term of 10 years, provided certain conditions are met. These conditions include giving Alloy written notice of intent to renew, signing the then-current form of franchise agreement, complying with modernization requirements, being in good standing, renewing the facility lease, complying with training requirements, paying a renewal fee of $5,000, and executing a general release of claims.