For Alloy franchises, what is the total amount of direct and incremental costs expected to be recognized thereafter (beyond 2029) over the remaining term of the associated franchise agreements, as of December 31, 2024?

According to Alloy's 2025 Franchise Disclosure Document, the direct and incremental costs associated with franchise agreements are primarily commissions. These costs are recorded as "Prepaid commissions" on the balance sheets. The document states that these costs are expected to be recognized over the remaining term of the franchise agreements as of December 31, 2024. However, the specific figures for the total amount of these costs expected to be recognized beyond 2029 are not detailed in this excerpt.

While the FDD excerpt mentions that the direct and incremental costs are to be recognized over the remaining term of the associated franchise agreements, it does not provide a breakdown of these costs by year or period. Therefore, it is not possible to determine the portion of these costs that will be recognized specifically after 2029 based on the provided information.

A prospective Alloy franchisee should inquire with the franchisor about a detailed schedule of these direct and incremental costs. Specifically, they should request information on how these costs are projected to be recognized over the life of the franchise agreement, including any amounts expected to be recognized beyond 2029. This information is crucial for financial planning and understanding the long-term cost structure of the franchise.