What is the amount of the surety bond for Alloy in Minnesota?

The 2025 Franchise Disclosure Document for Alloy states that due to the franchisor's financial condition, the Minnesota Department of Commerce requires a financial assurance in the form of a surety bond. While the FDD mentions that Alloy has posted a surety bond with the State of Minnesota, it does not specify the amount of the bond. The FDD indicates that a copy of the surety bond is attached as an exhibit to the Minnesota addenda pages.

For a prospective Alloy franchisee in Minnesota, this means that a surety bond is in place to provide some financial protection. However, without knowing the specific amount of the bond, it's difficult to assess the level of protection it offers. The bond is intended to provide recourse in the event that Alloy fails to meet its financial obligations to franchisees.

To gain a clear understanding of the financial assurance, a potential franchisee should review the exhibit containing the surety bond document in the Minnesota addenda. If the amount is not stated in the exhibit, it is essential to contact Alloy directly and ask for the specific amount of the surety bond required by the Minnesota Department of Commerce. Understanding the bond amount is crucial for evaluating the financial security of the franchise investment.