MN franchisor bonds.
Flat 3%. Enter your amount.

When the Minnesota Department of Commerce conditions a franchise registration on financial assurance, a franchisor can post a surety bond in lieu of impounding franchise fees under the Franchise Act (Minn. Stat. ch. 80C). We issue it at a flat 3% with no credit check; enter the amount Commerce set and the premium updates.

An alternative to impounding franchise fees when Commerce requires financial assurance under ch. 80C
Names the State of Minnesota as obligee and backs the franchisor’s obligations under the franchise contract
Flat 3%, no credit pull — enter the amount Commerce set and the premium updates
Flat 3%of your bond amount$275minimum premiumNo creditcheck to issue
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 franchisor bond — enter your amount, pay, and file with Commerce. Here is the whole thing:

TODAY · 5 MINUTES

Apply online

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

INSTANTLY

Issued on the spot

No credit check and no waiting — the executed bond is generated as soon as you pay. Larger amounts may get a quick review.

SAME DAY

File with Commerce

Submit the executed bond with your franchise registration as the financial-assurance condition. Wet-ink originals mailed on request.

The whole pricing page.

Bond amount × 3% = your premium, one-time, $275 minimum. Enter the figure Commerce set and the premium updates.

$25,000 bond
$750
$100,000 bond
$3,000
$250,000 bond
$7,500
About this bond

What it is and who needs it.

What the franchisor bond covers

Minnesota regulates franchise offerings through the Department of Commerce under the Minnesota Franchise Act (Minn. Stat. Chapter 80C) and Minnesota Rules chapter 2860. As a condition of registration, Commerce can require financial assurance — typically an impoundment of franchise fees — to protect prospective franchisees.

A franchisor may post a surety bond in lieu of that impoundment. The bond is issued by a corporate surety authorized in Minnesota, names the State of Minnesota as obligee, and is conditioned on the franchisor completing its obligations under the franchise contract — to provide the real estate, improvements, equipment, inventory, training, or other items it promised in the offering.

Commerce sets the amount based on the franchise fees charged and the number of franchises offered. If the franchisor fails to perform, an injured franchisee can recover against the bond — and if the surety pays, the franchisor repays the surety. We issue the amount Commerce set, at a flat 3% with no credit check.

Minn. Stat. ch. 80C / Minn. Rule 2860Under the Minnesota Franchise Act (Minnesota Statutes Chapter 80C) and Minnesota Rules chapter 2860, the Department of Commerce may condition a franchise registration on financial assurance. A franchisor may post a surety bond in lieu of impounding franchise fees; the bond is issued by a corporate surety, names the State of Minnesota as obligee, and is conditioned on the franchisor completing its obligations under the franchise contract. Commerce sets the amount — confirm it on your registration.

You need this bond if you are

A franchisor registering to offer franchises in Minnesota
Posting a bond in lieu of fee impoundment to satisfy a Commerce financial-assurance condition
Renewing a franchise registration that carries a financial-assurance requirement
A franchisor charging significant upfront fees before delivering on the franchise offering

Five minutes, issued on the spot.

Submit the application with the bond amount Commerce set — the executed franchisor bond is generated instantly, ready to file.

Start the application →
FAQs

Common questions.

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

How much is the Minnesota franchisor bond? +
The premium is a flat 3% of the bond amount, with a $275 minimum. The amount itself is set by the Department of Commerce based on the franchise fees you charge and the number of franchises you offer. Enter that figure and the quote updates.
Why would I post this bond? +
When Commerce conditions your franchise registration on financial assurance, the default is to impound franchise fees. Posting a surety bond instead lets you keep using those fees in the business — you pay the 3% premium rather than locking up the cash.
Is there a credit check? +
No — the franchisor bond is issued with no credit pull. Larger bond amounts may get a quick soft-pull review, which never affects your credit score.
Who does the bond protect? +
Prospective franchisees. It is conditioned on the franchisor completing its obligations under the franchise contract — real estate, equipment, training, and the like. If the franchisor fails to perform, an injured franchisee can recover against the bond.
What amount should I enter? +
Use the amount the Department of Commerce set for your registration. If you are not sure, send us the Commerce correspondence and we’ll confirm before issuing.
Related bonds

Other New York bonds.

Franchisor bond, issued today.

Five-minute application, flat 3%, $275 minimum. Enter the amount Commerce set and file the same day.

Your premium @ 3%$3,000
Apply now →