In whose favor is the bond issued for Alloy Personal Training, LLC?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
| Bond Number: | SP 0000855-0000 | |||
|---|---|---|---|---|
| Effective Date: | 06/29/2022 | V. | ||
| Amount of bond: | $135,000.00 | |||
| Continued from: | 06/29/2023 | to | 06/29/2024 | |
| On behalf of: | Alloy Personal Training, LLC | |||
| In favor of: | State of Maryland Securities D | Divisio | n |
| 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 |
Due to the financial condition of the Franchisor, the Minnesota Department of Commerce has required a financial assurance. Therefore, we have posted a surety bond which is on file with the State of Minnesota.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, Alloy Personal Training, LLC has secured surety bonds in favor of certain states due to the company's financial condition. One bond, with number SP 0000855-0000, is effective from June 29, 2023, to June 29, 2024, and is issued in favor of the State of Maryland Securities Division. Another bond, with number SP 0000872-0000, is effective from July 19, 2023, to July 19, 2024, and is in favor of the State of Illinois Attorney General. Additionally, the Minnesota Department of Commerce requires a financial assurance in the form of a surety bond due to Alloy's financial condition, which is on file with the State of Minnesota.
For a prospective franchisee, this means that Alloy has had to provide financial assurances to certain states. These bonds serve as a guarantee that Alloy will comply with state regulations and fulfill its obligations to franchisees. If Alloy fails to meet these obligations, the respective state can make a claim against the bond to compensate franchisees for any losses.
The requirement for these bonds highlights potential financial risks associated with investing in an Alloy franchise. It is essential for potential franchisees to carefully review Alloy's financial statements and consult with financial and legal advisors to fully understand the implications of these bonds and the overall financial stability of the franchisor.
It's also important to note that the Minnesota addendum includes provisions that protect franchisees from waiving claims of fraud or disclaiming reliance on information provided by the franchisor. This suggests that Alloy is taking steps to address concerns raised by state regulatory bodies and to provide additional protection to its franchisees.