Who benefits from the bond issued for Alloy Personal Training, LLC?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 |
| Bond Number: | SP 0000872-0000 | |||
|---|---|---|---|---|
| Effective Date: | 07/19/2022 | -14 | ||
| Amount of bond: | $135,000.00 | |||
| Continued from: | 07/19/2023 | to | 07/19/2024 | |
| On behalf of: | Alloy Personal Training, LLC | |||
| In favor of: | State of Illinois Attorney General |
Due to the financial condition of the Franchisor, the Minnesota Department of Commerce has required a financial assurance. Therefore, we have posted a surety bond which is on file with the State of Minnesota. A copy of the surety bond is attached as an exhibit to the Minnesota addenda pages.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the beneficiaries of the surety bonds vary by state. In Maryland, the bond is in favor of the State of Maryland Securities Division. For Illinois, the bond benefits the State of Illinois Attorney General. Additionally, the Minnesota Department of Commerce requires a financial assurance in the form of a surety bond due to the franchisor's financial condition, with a copy of the bond attached as an exhibit to the Minnesota addenda pages.
These surety bonds are essentially a form of financial guarantee required by certain states to protect franchisees. If Alloy fails to meet its financial or contractual obligations to franchisees in those states, the franchisee can make a claim against the bond to recover losses. The specific terms and conditions of each bond, including the coverage amount and claim procedures, would be detailed in the bond agreements themselves.
For a prospective Alloy franchisee, this means that the level of financial protection available may differ depending on the state in which they operate. It is important to review the specific addenda and bond information for their state to understand the extent of the surety bond coverage. Franchisees should also be aware of the procedures for making a claim against the bond if they experience financial harm due to Alloy's actions or financial instability. This requirement by certain states highlights the importance of carefully reviewing Alloy's financial condition as disclosed in the FDD.