What is the effect of executing bonds in pursuance of the Power of Attorney for Alloy?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
g instrument was acknowledged before m 20 23 , by Anthony Basciano, Attorney-in-Fact (Name and Title of Officer or Agent) Arch Insurance Company Missouri (Name of Corporation Acknowledging) corporation, on behalf of the corporation. | , a partner on behalf _, a partnership. Notary Public Cty: Comr Exp: ACKNOWLEDGEMENT OF SURETY \ne this15th day of May of of, a | | of (Name of Acknowledging Partner) (Name of Partnership) NOTARY SEAL STATE OF New Jersey ) ss. COUNTY OF Middlesex ) ss. COUNTY OF Middlesex Statement was acknowledged before m 20 23 , by Anthony Basciano, Attorney-in-Fact (Name and Title of Officer or Agent) Arch Insurance Company Missouri (Name of Corporation Acknowledging) corporation, on behalf of the corporation. | | This Power of Attorney limits the acts of those named herein, and they have no authority to bind the Company except in the manner and to the extent herein stated. Not valid for Note, Loan, Letter of Credit, Currency Rate, Interest Rate or Residential Value Guarantees.
POWER OF ATTORNEY
Know All Persons By These Presents:
That the Arch Insurance Company, a corporation organized and existing under the laws of the State of Missouri, having its principal administrative office in Jersey City, New Jersey (hereinafter referred to as the "Company") does hereby appoint:
Anthony Basciano of Cortland, NY
its true and lawful Attorney(s) in Fact, to make, execute, seal, and deliver from the date of issuance of this power for and on its behalf as surety, and as its act and deed: Any and all bonds, undertakings, recognizances and other surety obligations, in the penal sum not exceeding One Hundred Fifty Million Dollars ($150,000,000.00) This authority does not permit the same obligation to be split into two or more bonds In order
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the execution of bonds, undertakings, recognizances, and other surety obligations, when done following the guidelines of the Power of Attorney, is binding upon Arch Insurance Company. This means that if Alloy is required to obtain a surety bond (for example, to comply with state franchise regulations), the Attorney-in-Fact appointed by Arch Insurance can execute these bonds on behalf of the company. The power of attorney granted to Anthony Basciano allows him to execute bonds on behalf of Arch Insurance up to a penal sum not exceeding $150,000,000.00.
For a prospective Alloy franchisee, this is relevant because it confirms that the surety bonds required by certain states are valid and binding. For instance, the FDD mentions that Maryland requires a financial assurance in the form of a surety bond due to the franchisor's financial condition. The Power of Attorney ensures that the bonds executed by the appointed attorney are legally sound and backed by Arch Insurance Company.
It's important to note that the Power of Attorney has limitations. It specifies that the appointed attorney, such as Anthony Basciano, cannot exceed the stated authority and cannot split obligations into multiple bonds to stay within the dollar limit. Additionally, the Power of Attorney is not valid for certain financial instruments like notes, loans, letters of credit, or guarantees related to currency, interest rates, or residential values. This ensures that the attorney's authority is limited to surety obligations directly related to Alloy's franchising activities.
Overall, the Power of Attorney provides assurance that Alloy can meet its surety bond requirements through authorized representatives of Arch Insurance, which is crucial for operating in states with franchise registration and financial assurance requirements. Franchisees should be aware of these bonds, especially in states like Maryland, as they provide a level of financial protection related to the initial franchise fee.