How many days' notice is required to cancel the Alloy surety bond?
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, the surety can cancel the bond with a 30-day written notice to both the principal (Alloy Personal Training, LLC) and the Washington State Securities Division. The notice must be sent via registered mail. The 30-day period starts once the Securities Division receives the notice and proof that the principal also received it.
This means that if Alloy is required to have a surety bond in place, the surety company providing the bond can cancel it, but they must give Alloy and the relevant regulatory body 30 days' notice. This provides a window for Alloy to obtain a replacement bond, if necessary, to maintain compliance with franchise regulations.
It is important for a prospective Alloy franchisee to understand the implications of surety bonds, particularly in states like Washington and Maryland where they are required due to the franchisor's financial condition. The cancellation of a surety bond could affect Alloy's ability to operate in those states if a replacement cannot be secured in a timely manner. Franchisees should inquire about the current status and requirements of any surety bonds applicable to their specific location.