Is an Alloy franchisee required to have a maintenance contract for the computer system?

Core for streaming, mouse, wireless keyboard, cables and mounting hardware, as a minimum requirement.

We recommend, but do not require, that you have a maintenance contract for your computer system. You must at all times have a high-speed internet connection for your computer system, and we may designate the type of high-speed connection you must have. We will have independent access to the data stored through your CRM account, and we will have the ability to download information relating to the Franchised Business, including your client database and sales information through the CRM software. We may, in our discretion, have separate independent access to your computer system. Because we own the relationship with the CRM software and provide you access to the software, your customer database will be our property and you may not keep a copy of the customer database after your Franchise Agreement expires or is terminated. We estimate that the current cost to subscribe to the required software bundle will be $220.00 per week.

We may, during the term of your Franchise Agreement, require you to update and/or upgrade your computer system. There are no contractual limitations on our access to your data or on our right to request that you obtain these updates and/or upgrades, nor are there any limitations on the cost of these updates and/or upgrades. Neither we nor our affiliates will provide you with any maintenance, updates or upgrades for your computer system, but we or our affiliate will provide updates to the Alloy App. The estimated annual cost of maintenance, updating, upgrading or support contracts for the computer system can range from $600 to $1,200 per year.

You must comply with all of our requirements related to the Alloy App and you shall sign any agreements we require related to the Alloy App, such as an end user license agreement, although there is no separate agreement in use as of the date of this Disclosure Document. You are strictly prohibited from modifying, reproducing, duplicating or reverse engineering the Alloy App in any manner.

ITEM 12 TERRITORY

Franchise Agreement

The Franchise Agreement grants you the right to operate your Franchised Business only at the location we approve ("Authorized Location"). You will not receive an exclusive territory. You may face competition from other franchisees, from outlets we own, or from other channels of distribution or competitive brands that we control. However, we will grant you a protected area, which will be described in an exhibit to your Franchise Agreement ("Designated Area"). If your Designated Area is located in a suburban area, your Designated Area will include a population of at least 30,000 people, which for most suburban areas will cover a radius of approximately 2 miles from the Authorized Location (taking into account any geographic factors like rivers or other similar natural boundaries). We reserve the right to create a more limited Designated Area for Facilities located in densely populated areas but your Designated Area will have a population of at least 30,000 people.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 31–42)