Does Alloy make any guarantees concerning the success of the Facility located on any site to which they consent?

According to Alloy's 2025 Franchise Disclosure Document, Alloy does not guarantee the success of a franchise location, even if they have given consent to the site. Alloy requires franchisees to lease a site that meets their site selection guidelines, and Alloy must provide written consent to the site. The franchisee cannot open for business until Alloy confirms in writing that the franchisee has met all pre-opening obligations and has consented to the opening date.

This means that while Alloy has site selection guidelines and must approve the location, this approval does not come with any assurance of profitability or success. The franchisee bears the risk of the location's performance. This is a common practice in franchising, as the franchisor typically provides guidance and approval but cannot control all the factors that contribute to a location's success, such as local market conditions and the franchisee's management skills.

Furthermore, Alloy is not responsible or liable for any pre-opening obligations, losses, or expenses incurred if the franchisee fails to comply with these obligations or fails to open by a specific date. Alloy also retains the right to seek injunctive relief or specific performance if the franchisee fails to comply with their obligations. Therefore, franchisees should carefully consider the site selection guidelines and pre-opening obligations, as failure to meet these standards can have legal and financial repercussions.