Minnesota franchisor bonds.
From $100.
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). The premium is 1% of your bond amount, $100 minimum; enter the amount Commerce set and your exact price appears at the application.
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How much does a Minnesota franchisor bond cost?
1% 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 franchisor bond — enter your amount, pay, and file with Commerce. Here is the whole thing:
Apply online
Your franchisor details, the bond amount Commerce required, and the effective date — that is the application.
Issued on the spot
No credit check up to $10,000. Larger amounts may get a quick underwriting review.
File with Commerce
Submit the executed bond with your franchise registration as the financial-assurance condition. Wet-ink originals mailed on request.
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, with pricing from $100 and no credit check up to $10,000 in the application.
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 Commerce. Submit the executed bond with your franchise registration as the financial-assurance condition. Wet-ink originals mailed on request.
What sets the price
The premium is 1% of the bond amount, $100 minimum: the amount the obligee sets moves the price, not your business profile.
No credit check up to $10,000. 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 Commerce set — the executed franchisor bond is generated instantly, ready to file.
Start the application →Common questions.
Other Minnesota bonds.
The same bond in nearby states.
Price and requirements checked on the carrier’s application, . Page updated .
Franchisor bond, issued today.
Pricing from $100. Enter the amount Commerce set and file the same day.