Where can I find a copy of the surety bond posted by Alloy for Illinois franchisees?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
Due to the financial condition of the Franchisor, the Illinois Attorney General's Office has required a financial assurance. Therefore, we have posted a surety bond which is on file with the Illinois Attorney General's Office. A copy of the surety bond is attached as an exhibit to the Illinois addenda pages.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, due to the franchisor's financial condition, the Illinois Attorney General's Office has required a financial assurance in the form of a surety bond. This bond is on file with the Illinois Attorney General's Office. A copy of the surety bond is attached as an exhibit to the Illinois addenda pages.
This means that Alloy franchisees in Illinois have some financial protection in case Alloy fails to meet its obligations. The surety bond serves as a guarantee that certain financial commitments will be honored. Prospective franchisees should carefully review the Illinois addenda pages to understand the specific terms and conditions of the surety bond, including the coverage amount and the process for making a claim.
It is common for franchisors with weaker financial positions to be required to post a surety bond in certain states as a form of financial assurance for franchisees. This requirement is designed to protect franchisees' investments. Franchisees should understand the protections afforded by the bond and the circumstances under which they can make a claim.