Is the license agreement for the use of the name "Alloy Personal Training" cancelable by the Company?

According to Alloy's 2025 Franchise Disclosure Document, the license agreement between Alloy Personal Training, LLC (the Company) and its licensor, Alloy Personal Training Solutions, LLC, for the use of the registered name "Alloy Personal Training" is perpetual and non-cancelable. This agreement, which was established on August 1, 2019, grants Alloy the right to sell franchises under the Alloy Personal Training name and to collect franchise fees, royalties, and other fees from franchisees.

This arrangement has significant implications for prospective Alloy franchisees. Because the license agreement is non-cancelable, Alloy has a secure and ongoing right to use the "Alloy Personal Training" name. This provides franchisees with assurance that the brand name will remain consistent and available for their use throughout the term of their franchise agreement. This stability is crucial for building brand recognition and customer loyalty.

Furthermore, the license agreement is royalty-free, meaning that Alloy does not have to pay ongoing royalties to Alloy Personal Training Solutions, LLC for the use of the name. This could potentially free up resources for Alloy to invest in other areas of the business, such as marketing, training, or technology, which could benefit franchisees. The non-exclusive nature of the license agreement means that Alloy Personal Training Solutions, LLC could potentially license the "Alloy Personal Training" name to other entities. However, the perpetual and non-cancelable terms of Alloy's license agreement provide a strong foundation for its franchise operations.