For an Alloy franchise, what is the cumulative number of facilities required to be open and continuously operating for business in the Development Territory within 2 years of signing the Franchise Agreement?

According to Alloy's 2025 Franchise Disclosure Document, a material provision of the Area Development Agreement is that a specific number of Alloy facilities must be open and continuously operating in the Development Territory, according to the Development Schedule. The Development Schedule outlines the dates by which franchise agreements must be signed and the dates by which facilities must be opened and continuously operating for business.

Specifically, within one year of signing the Franchise Agreement, one facility must be open and continuously operating. Within two years of signing the agreement, a cumulative total of two facilities must be open and continuously operating. Therefore, the franchisee is expected to have two Alloy facilities open within two years of the agreement.

It is important to note that Alloy only counts facilities that are actually open and continuously operating for business in the Development Territory when determining compliance with the Development Schedule. This means that facilities under construction or not yet fully operational do not count towards meeting the required number of open facilities.