Why has the Washington Department of Financial Institutions required a financial assurance from Alloy?

Based on the 2025 FDD, the document does not state the specific reason why the Washington Department of Financial Institutions required a financial assurance from Alloy. However, the FDD does include a franchisor surety bond related to the State of Washington.

Item 23 of the Alloy FDD includes receipts and information regarding surety bonds required by certain states. While the document mentions that states like Minnesota and Maryland have required financial assurances (in the form of surety bonds) due to Alloy's financial condition, there is no explicit statement explaining the reason for the Washington surety bond requirement.

A prospective Alloy franchisee should directly ask the franchisor for clarification on why the Washington Department of Financial Institutions requires a financial assurance. Understanding the specific reasons behind this requirement is crucial for assessing the financial stability and potential risks associated with investing in an Alloy franchise in Washington.