Is Alloy offering area development franchises for more than three units in Maryland?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
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, Alloy is currently limiting area development franchises in Maryland to a maximum of three units. The Maryland Securities Commissioner has mandated a financial assurance due to Alloy's financial condition. This assurance specifically covers the initial franchise fee for single-unit franchises or area development franchises for up to three units.
Alloy explicitly states that it will not offer or sell any area development franchises exceeding three units in Maryland. This restriction is tied to the surety bond filed with the Maryland Securities Division, which only covers franchises up to this size.
For prospective franchisees in Maryland, this means that the opportunity to develop a larger territory with more than three Alloy locations is currently unavailable. This limitation may impact the potential scale and investment strategy for those looking to expand the Alloy brand within the state. It is important to verify with Alloy if this policy changes in the future.