Maryland franchise registration bonds.
From $100.
A Maryland franchise registration can arrive with an escrow condition that locks up franchise fees until the franchisor finishes what it promised. COMAR 02.02.08.08F lets the franchisor post a surety bond instead, sized to its own initial fee and Maryland sales estimate. Premiums cost 2% of the bond amount, $100 minimum.
Trusted by industry leaders
How much does a Maryland franchise registration bond cost?
2% of the bond amount, from $100. Enter your amount in the calculator for the exact price.
Three steps. One sitting.
Franchise-registration bonds are simple to issue once you know the sum. Enter the amount, consent to a soft pull, and file with the Securities Division:
Apply online
Your entity type, state of organization, address, the bond amount your condition calls for, and an effective date — plus a one-time consent to a soft credit pull.
Approved & priced
Your exact premium is calculated from the amount you enter — 2% of the bond amount, with a $100 minimum. Larger sums may draw a brief review before issuance.
File with the Securities Division
Your executed bond and power of attorney arrive by email, ready to send to the Securities Division so the Commissioner can remove the escrow condition. Wet-ink original mailed on request.
What it is and who needs it.
What the franchisor bond actually guarantees
Maryland regulates franchise offerings under the Franchise Registration and Disclosure Law, Business Regulation Article Title 14, Subtitle 2, administered by the Securities Commissioner in the Office of the Attorney General. Registration is not automatic: where the Commissioner concludes a franchisor has not made adequate financial arrangements to meet its obligations, § 14-217 permits an escrow of franchise fees until those obligations are satisfied.
The bond is the franchisor’s alternative. Under COMAR 02.02.08.08F a surety bond from a corporate surety authorized in Maryland can stand in place of the escrow, conditioned on the franchisor completing its obligations under the franchise agreement — real estate, improvements, equipment, inventory, training, or other promised items. A third option, deferring fees until initial obligations are complete, is spelled out in the same regulation at § G.
There is no single statutory sum. The regulation sets a floor of the initial franchise fee multiplied by the franchises you estimate you will sell in Maryland in the next year, so a system with a $35,000 fee and three expected Maryland openings is looking at a very different number than one selling twenty. Enter the figure your condition names; your premium is 2% of that amount with a $100 minimum, after a soft credit check that never affects your score.
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 the Securities Division. Your executed bond and power of attorney arrive by email, ready to send to the Securities Division so the Commissioner can remove the escrow condition. Wet-ink original mailed on request.
What sets the price
The premium is 2% of the bond amount, $100 minimum: the amount the obligee sets moves the price, not your business profile.
One soft credit pull, never a hard inquiry, and it never affects your score.
Where a check runs, it decides approval; the rate is the same for everyone approved.
One application, issued instantly.
These are the actual underwriting fields, including your bond amount, entity type, state of organization, and a one-time consent to a soft credit pull.
Start the application →Common questions.
Other Maryland bonds.
The same bond in nearby states.
Price and requirements checked on the carrier’s application, . Page updated .
Take your franchise fees at signing.
Premiums from $100, soft pull only. Enter your amount and file with the Securities Division the same day. Free until issued.