What is the maximum aggregate liability of ARCH INSURANCE COMPANY under the bond and all continuation certificates for Alloy Personal Training, LLC?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
ISOR: Alloy Personal Training, LLC DEVELOPER: [REMAINDER OF PAGE LEFT BLANK INTENTIONALLY]
ILLINOIS SURETY BOND
ARCH SURETY
CONTINUATION CERTIFICATE
KNOWN ALL MEN BY THESE PRESENTS, THAT:
In consideration for the payment of a renewal premium, ARCH INSURANCE COMPANY, as SURETY, does hereby continue
| Bond Number: | SP 0000872-0000 | |||
|---|---|---|---|---|
| Effective Date: | 07/19/2022 | -14 | ||
| Amount of bond: | $135,000.00 | |||
| Continued from: | 07/19/2023 | to | 07/19/2024 | |
| On behalf of: | Alloy Personal Training, LLC | |||
| In favor of: | State of Illinois Attorney General |
Provided, however, that this Continuation Certificate does not create a new obligation and is executed upon the express condition and provision that the Surety's liability under said bond and this and all Continuation Certificates issued in connection therewith shall not be cumulative and that said Surety's aggregate liability under said bond and this and all such Continuation Certificates on account of all defaults committed during the period (regardless of the number of years) said bond has been and shall be in force, shall not in any event exceed the amount of said bond as hereinbefore set forth.
Dated this 8th day of April, 2024
ARCH INSURANCE COMPANY
Anthony Basciano
, Attorney-in-Fact
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 exis
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, a Continuation Certificate issued by ARCH INSURANCE COMPANY specifies that the surety's liability, including the bond and all continuation certificates, is not cumulative. The maximum aggregate liability of ARCH INSURANCE COMPANY for Alloy is limited to the amount of the original bond, regardless of the number of years the bond has been in effect or the number of defaults that may have occurred during that period. This means that the coverage amount does not increase or renew with each continuation certificate; it remains capped at the initial bond amount.
For a prospective Alloy franchisee, this information is crucial for understanding the extent of financial protection provided by the surety bond. It clarifies that the bond's coverage is a one-time maximum, not an annually renewing amount. This is a standard practice in surety bond agreements, where the bond serves as a guarantee up to a fixed limit for the duration it is in force, with continuation certificates simply extending the period of coverage without increasing the liability cap.
Specifically, the power of attorney granted to Anthony Basciano by Arch Insurance Company allows him to execute surety obligations up to a penal sum not exceeding $150,000,000.00. However, this is a general limit on his authority and not necessarily the specific bond amount for Alloy. The Illinois and Maryland bonds for Alloy are each $135,000.00. The continuation certificate ensures that the surety's liability does not exceed the original bond amount, regardless of the number of years the bond is in force or the number of continuation certificates issued.