Is Alloy offering area development franchises for more than three units in the State of 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, Alloy is not offering area development franchises for more than three units in the State of Maryland. The Maryland Securities Commissioner required a financial assurance due to Alloy's financial condition. To meet this requirement, Alloy has posted a surety bond with the Maryland Securities Division.
The surety bond specifically covers the initial franchise fee for either a single unit franchise or an area development franchise for up to three units. Alloy explicitly states that this is the only type of area development franchise they are currently offering and selling in Maryland.
Alloy also confirms that they will not offer or sell any other area development franchises beyond the single unit or three-unit options in the State of Maryland. This limitation is likely tied to the financial assurance requirements and the surety bond in place, restricting Alloy's ability to expand area development offerings in Maryland without additional financial guarantees.