How many days after the Commissioner of Commerce and Alloy receive written notice from the Surety is the cancellation effective?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
This Bond may also be cancelled by the Surety upon 30 days written notice by registered mail to the Principal and to the Securities Division. At the end of the 30 day period, the Bond shall be deemed cancelled except as to liabilities of the Principal arising prior to the date of cancellation. The notice of cancellation shall be deemed effective and the 30 day period shall begin to run upon
FRANCHISOR SURETY BOND Page 1 of 3 Revised April 22, 2010
receipt by the Securities Division of said notice and sufficient proof of receipt of said notice by the Principal.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, a surety bond is required in Minnesota due to the franchisor's financial condition. The bond can be cancelled by the Surety (the bonding company) with 30 days written notice to both Alloy and the Securities Division (acting as the Commissioner of Commerce in this case). The cancellation becomes effective 30 days after the Securities Division receives the notice and proof that Alloy also received the notice.
For a prospective Alloy franchisee in Minnesota, this means that the surety bond protecting them could be cancelled if the Surety provides the required notice. This cancellation would occur regardless of Alloy's financial health at that time.
It is important to note that the 30-day period begins only when the Securities Division receives both the notice and proof that Alloy received the notice. This ensures that both parties are aware of the impending cancellation and have time to address any potential issues or find alternative financial assurance if necessary.