What is the maximum number of units included in the area development franchise that Alloy is offering and selling in Maryland?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
Due to the financial condition of the Franchisor, the Maryland Securities Commissioner has required a financial assurance. Therefore, we have posted a surety bond which is on file with the Maryland Securities Division. A copy of the surety bond is attached as an exhibit to the Maryland addenda pages. The surety bond covers the initial franchise fee for a single unit franchise or an area development franchise for three units, which at this time is all we are offering and selling in the State of Maryland. We will not offer and sell any other area development franchises in the State of Maryland.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, the maximum number of units included in an area development franchise that Alloy is offering and selling in the state of Maryland is three. The FDD states that the surety bond covers the initial franchise fee for either a single unit franchise or an area development franchise for three units. Alloy is not offering or selling any other area development franchises beyond this size in Maryland at this time.
This limitation on area development franchises in Maryland is due to the financial condition of Alloy, which has led the Maryland Securities Commissioner to require a financial assurance in the form of a surety bond. This bond is on file with the Maryland Securities Division and is intended to protect franchisees in the event that Alloy is unable to fulfill its obligations.
For prospective franchisees in Maryland, this means that the largest area development franchise they can acquire from Alloy is for three units. They should also be aware of the financial assurance in place and understand the protections it offers. It is important to note that this restriction applies specifically to Maryland and may not be in effect in other states where Alloy offers franchises.