What is the minimum annual gross sales required for an Alloy franchise in Year 1 of operation?

According to Alloy's 2025 Franchise Disclosure Document, the minimum annual gross sales required for the first year of operation is $240,000. This benchmark is calculated from the first day the Alloy facility opens for business. For the second year, which is defined as the 12-month period starting on the facility's first anniversary, and each subsequent year through the initial term of the Franchise Agreement, the minimum annual gross sales increases to $300,000.

If an Alloy franchisee fails to meet the minimum annual gross sales in the first year, Alloy will provide additional on-site training and assistance at the franchisee's expense, including a per diem fee and reimbursement of expenses for Alloy's representative. If the franchisee fails to achieve the minimum sales a second time, Alloy may again require additional on-site training and assistance. A third failure to meet the minimum annual gross sales allows Alloy to terminate the Franchise Agreement without an opportunity for the franchisee to correct the default.

For each year that an Alloy franchisee fails to achieve the minimum annual gross sales, they must compensate Alloy for the shortfall in royalty fees. This shortfall is calculated as 7% of the difference between the franchisee's actual gross sales for the year and the minimum annual gross sales required for that year. However, Alloy retains the right to reduce the minimum annual gross sales requirement based on a franchisee's individual circumstances, but is not obligated to offer similar modifications to other franchisees.