IL franchise investment bonds.
From $100. Enter your amount.

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.

An alternative to escrowing or impounding franchise fees when the Illinois Attorney General requires financial assurance
Used at franchise registration under 815 ILCS 705/15 — the franchisor is the principal, the franchisee the protected party
0.5% of the bond amount, $100 minimum — enter the required amount and your exact price appears at the application; no credit fields to fill out
0.5% of bond amt.$100 minimumInstantapproval for mostNo SSNin the application
Trusted by industry leaders
NYCEDC
BDG
Capital
McKinney
Terra
JLL
Triple Five
Georgetown
NYCEDC
BDG
Capital
McKinney
Terra
JLL
Triple Five
Georgetown
How it works

Apply to filed in 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:

TODAY · 5 MINUTES

Apply online

Your franchisor details, the bond amount the Attorney General required, and the effective date — that is the entire application.

INSTANTLY

Issued on the spot

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.

SAME DAY

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.

About this bond

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; the application collects no credit information.

Franchise Disclosure Act of 1987 (815 ILCS 705/15)Under the Franchise Disclosure Act of 1987 (815 ILCS 705/15), if the Administrator (the Illinois Attorney General's office) finds a franchisor has not demonstrated adequate financial arrangements to meet its pre-opening obligations, it may require escrow or impoundment of franchise fees — or, at the franchisor's option, a surety bond instead. The amount is set by the Administrator case-by-case; confirm the figure the Franchise Bureau required and we'll issue it.

You need this bond if you are

A franchisor registering in Illinois that the Attorney General asked for financial assurance
Choosing a bond over escrow so initial franchise fees are not tied up
A newer or thinly capitalized franchisor whose financials triggered an assurance requirement
Renewing a franchise registration with a continuing financial-assurance condition

Five minutes, 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 →
FAQs

Common questions.

If yours isn't here, the bond team can usually answer within the hour.

How much is the Illinois franchise bond?
Pricing is 0.5% of the bond amount, $100 minimum, set by the bond amount the Attorney General required. The amount itself is set case-by-case by the Attorney General’s Franchise Bureau — there is no fixed statutory figure. Enter the amount required and your exact price appears at the application.
Do all franchisors need this?
No. It is only required when the Administrator finds a franchisor hasn't demonstrated adequate financial arrangements to meet its pre-opening obligations. Many franchisors register without any assurance requirement.
Bond or escrow — which is better?
The Act lets you choose. A surety bond is often preferable because you pay a premium — 0.5% of the bond amount, $100 minimum — instead of tying up the full franchise fee in an escrow account until your obligations are fulfilled.
What does the bond protect against?
It protects franchisees who pay initial fees, by backing the franchisor's duty to deliver the real estate, build-out, equipment, training, and other items the franchise agreement promises. If the surety pays a claim, the franchisor repays the surety.
Is there a credit check?
The application collects no credit information. Most applications approve instantly; for larger bond amounts, an underwriter may run a quick soft credit check, which is never a hard inquiry and never affects your score.
Related bonds

Other Illinois bonds.

Franchise bond, issued today.

Five-minute application, from $100. Enter the amount the Attorney General required and file with your registration.

Your premiumfrom $100
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