What is the amount of the surety bond that Alloy is subject to?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
a material inducement to a franchisee's investment. This provision supersedes any other or inconsistent term of any document executed in connection with the franchise.
- Except as amended herein, the Area Development Agreement will be construed and enforced in accordance with its terms.
Each of the undersigned hereby acknowledges having read and understood this Addendum and consents to be bound by all of its terms.
FRANCHISOR: Alloy Personal Training, LLC DEVELOPER:
MARYLAND SURETY BOND
ARCH SURETY
CONTINUATION CERTIFICATE
KNOWN ALL MEN BY THESE PRESENTS, THAT:
In consideration for the payment of a renewal premium, ARCH INSURANCE COMPANY, as SURETY, does hereby continue
| Bond Number: | SP 0000855-0000 | |||
|---|---|---|---|---|
| Effective Date: | 06/29/2022 | V. | ||
| Amount of bond: | $135,000.00 | |||
| Continued from: | 06/29/2023 | to | 06/29/2024 | |
| On behalf of: | Alloy Personal Training, LLC | |||
| In favor of: | State of Maryland Securities D | Divisio | n |
Provided, however, that this Continuation Certificate does not create a new obligation and is executed upon the express condition and provision that the Surety's liability under said bond and this and all Continuation Certificates issued in connection therewith shall not be cumulative and that said Surety's aggregate liability under said bond and this and all such Continuation Certificates on account of all defaults committed during the period (regardless of the number of years) said bond has been and shall be in force, shall not in any event exceed the amount of said bond as hereinb
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the franchisor has posted surety bonds in certain states due to its financial condition. In Maryland and Illinois, the amount of the bond is $135,000. These bonds are on file with the respective state authorities, namely the Maryland Securities Division and the Illinois Attorney General. The bonds serve as a financial assurance to these states.
These surety bonds are not new obligations but continuations of existing bonds. The document specifies that the surety's liability will not be cumulative and will not exceed the bond amount, regardless of the number of years the bond has been in effect. This means that the maximum payout from the bond for any defaults during its period of validity is capped at $135,000 in Maryland and Illinois.
For a prospective Alloy franchisee, this information indicates that Alloy has had to provide financial assurances to certain states due to its financial condition. While this may raise concerns, the existence of a surety bond provides some level of protection to franchisees in those states. It is important for potential franchisees to understand the terms and conditions of these bonds and how they might be able to make a claim against them.