Is the Trademark License Agreement between Alloy and APTS cancelable?

According to Alloy's 2025 Franchise Disclosure Document, the Trademark License Agreement between Alloy and APTS, dated August 1, 2019, is a perpetual and non-cancelable license agreement. This means that Alloy has a permanent right to use certain trademarks licensed from APTS, and this agreement cannot be terminated. APTS is also responsible for maintaining the registrations for these marks by filing necessary affidavits and renewals.

For a prospective Alloy franchisee, this is a positive aspect as it ensures the continuous use of the licensed trademarks without the risk of cancellation. This provides stability and consistency in branding, which is crucial for building customer recognition and trust. The franchisee can rely on using these trademarks as part of their business operations without worrying about potential disruptions due to licensing issues.

However, it is important for the franchisee to understand the implications of this agreement. While the license is non-cancelable, the franchisee must still adhere to the terms and conditions outlined in the Franchise Agreement regarding the use of the trademarks. Any misuse or unauthorized use of the trademarks could still lead to legal repercussions, as Alloy retains the right to control the use of its Proprietary Marks. Therefore, franchisees must ensure they fully comply with Alloy's guidelines to avoid any potential conflicts or liabilities.