Illinois franchise investment bonds.
From $100.
When a franchisor registers to sell franchises in Illinois, the Attorney General can require financial assurance under the Franchise Disclosure Act of 1987 (815 ILCS 705/15) — and a surety bond is one accepted option in lieu of escrowing franchise fees. Pricing is 0.5% of the bond amount, $100 minimum, and no credit check up to $100,000.
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How much does an Illinois franchise investment bond cost?
0.5% of the bond amount, from $100. Enter your amount in the calculator for the exact price.
Three steps. One sitting.
No underwriting queue for the standard franchise bond — enter your amount, pay, and file with your franchise registration. Here is the whole thing:
Apply online
Your franchisor details, the bond amount the Attorney General required, and the effective date — that is the application.
Issued on the spot
No credit check up to $100,000, and most applicants are approved instantly — the executed bond is generated as soon as you pay.
File with your franchise registration
Submit the executed bond with your Illinois franchise registration as the financial assurance the Attorney General required. Wet-ink originals mailed whenever needed.
What it is and who needs it.
What the franchise bond actually covers
Illinois regulates franchise offerings through the Attorney General's Franchise Bureau under the Franchise Disclosure Act of 1987 (815 ILCS 705). A franchisor must register before selling franchises in the state. If the franchisor's financials don't clearly show it can meet its pre-opening obligations — real estate, build-out, equipment, inventory, training — the Administrator can require financial assurance.
Section 15 of the Act lets the Administrator require the escrow or impoundment of franchise fees until those obligations are met — or, at the franchisor's option, the furnishing of a surety bond instead. The bond protects franchisees who pay initial fees, by backing the franchisor's duty to deliver what the franchise agreement promises.
Because the amount is set case-by-case by the Administrator, there is no single statutory figure — it relates to the fees you collect before fulfilling your opening obligations. A bond is often preferable to escrow because it frees up the initial fee rather than tying it up. Enter the amount required and pricing is 0.5% of the bond amount, $100 minimum; no credit check up to $100,000.
You need this bond if you are
Claims, renewal, filing, and what sets the price.
If a claim is made
A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.
The surety investigates and pays a valid claim, up to the bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
The premium covers a one-year term from the effective date you choose.
Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.
How to file it
File with your franchise registration. Submit the executed bond with your Illinois franchise registration as the financial assurance the Attorney General required. Wet-ink originals mailed whenever needed.
What sets the price
The premium is 0.5% of the bond amount, $100 minimum: the amount the obligee sets moves the price, not your business profile.
No credit check up to $100,000. Above that, the carrier may run a soft pull, which never affects your score.
Where a check runs, it decides approval; the rate is the same for everyone approved.
One application, issued on the spot.
Submit the application with the bond amount the Attorney General required — the executed bond is generated instantly, ready to file with your registration.
Start the application →Common questions.
Other Illinois bonds.
Price and requirements checked on the carrier’s application, . Page updated .
Franchise bond, issued today.
From $100. Enter the amount the Attorney General required and file with your registration.