How many factions does ZH support?

You can have up to 12 generals in challenge mode. I think the AI limit is also 12, but that includes the base factions. I have never come across a limit in playertemplate.ini, but I've also never tried to push the limit anyway.

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You can have 13 Generals. On the drop down menu...
Shockwave has 15 Generals...
Xenoforce has 15 Generals and not replacing the Boss General...
In total, having 16 Generals.
Civilian is also a faction... 17 sides.
But I think you can have as many factions as you wish...
With fiddling more around with PlayerTemplate...
For the General's Challenge Screen, you can do the same, and indicate in pixels where Location Icons will be placed...
If you're making unique General's Challenges and using the TWO UNUSED SLOTS, the USA BOSS General and the GLA BOSS General, around the Audio files, you can find their voices.

However, having more than 12 Generals...
You're going to need to add AI for the Extra Generals...
Which is very lengthy process.

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Alright thanks. I'm not adding any AI to it. I asked because I didn't want to spend the time adding the new faction to Shockwave only to find out the game crashes because it's over the limit (upgrades anyone?).