Who benefits from the surety bond secured by Alloy, according to this document?
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 |
Due to the financial condition of the Franchisor, the Maryland Securities Commissioner has required a financial assurance. Therefore, we have posted a surety bond which is on file with the Maryland Securities Division. A copy of the surety bond is attached as an exhibit to the Maryland addenda pages. The surety bond covers the initial franchise fee for a single unit franchise or an area development franchise for three units, which at this time is all we are offering and selling in the State of Maryland. We will not offer and sell any other area development franchises in the State of Maryland.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the surety bond in Maryland is in favor of the State of Maryland Securities Division. This is due to Alloy's financial condition, which has led the Maryland Securities Commissioner to require financial assurance in the form of a surety bond. This bond is on file with the Maryland Securities Division.
The Maryland addendum specifies that the surety bond covers the initial franchise fee for a single unit franchise or an area development franchise for three units. This is relevant because Alloy is only offering and selling these types of franchises in Maryland at the time of the FDD. Alloy states that it will not offer and sell any other area development franchises in the State of Maryland.
For a prospective Alloy franchisee in Maryland, this means that the surety bond is in place to protect the state's interests related to the initial franchise fees paid. Should Alloy fail to meet its financial obligations, the Maryland Securities Division can make a claim against the bond to potentially recover funds related to those initial franchise fees. This arrangement provides a level of financial security for franchisees, albeit indirectly, by ensuring Alloy meets its financial obligations to the state.