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 the application collects no credit information.
















No underwriting queue for the standard franchise bond — enter your amount, pay, and file with your franchise registration. Here is the whole thing:
Your franchisor details, the bond amount the Attorney General required, and the effective date — that is the entire application.
The application collects no credit information, and most applicants are approved instantly — the executed bond is generated as soon as you pay. Larger amounts may get a quick review.
Submit the executed bond with your Illinois franchise registration as the financial assurance the Attorney General required. Wet-ink originals mailed whenever needed.
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; the application collects no credit information.
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 →If yours isn't here, the bond team can usually answer within the hour.
Five-minute application, from $100. Enter the amount the Attorney General required and file with your registration.