If the Alloy Development Agreement is terminated, does the developer have to close all Alloy locations?

According to the 2025 Alloy Franchise Disclosure Document, the termination of the Development Agreement does not automatically force the closure of all Alloy locations. The key factor is whether a separate Franchise Agreement has been executed for each location.

Specifically, if a Franchise Agreement has been executed and is still valid, the franchisee can continue to operate that Alloy facility even after the Development Agreement is terminated. The rights and obligations related to each facility are governed by the terms of its individual Franchise Agreement, which exists independently of the Development Agreement. However, any rights to develop new Alloy facilities under the Development Agreement cease upon its termination, and Alloy is then entitled to franchise others in the territory, provided there are no existing franchise agreements in place.

In practical terms, this means that an Alloy developer who has successfully opened multiple locations under individual Franchise Agreements retains the right to operate those existing businesses, even if the overarching Development Agreement is terminated. This provides a level of security for franchisees who have already invested in and established Alloy facilities. However, they lose the opportunity to further expand within the Development Territory and must adhere to the terms of their existing Franchise Agreements.