South Dakota franchisor bonds.
$150 flat.
When South Dakota’s Securities Regulation requires a franchisor to escrow prepaid franchise fees, the Franchise Investment Act (SDCL 37-5B) lets it allow alternatives to escrow case by case. A franchisor can ask to post our carrier’s $30,000 surety bond instead. Ours is $150 flat — set by our carrier’s rate book, and no credit check.
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How much does a South Dakota franchisor bond cost?
$150 at the $30,000 amount, the same for every applicant.
Three steps. One sitting.
This bond is simple to issue. Here’s the entire process:
Apply online
Franchisor details and an effective date. That is the application. No credit check.
Pay & e-sign
Fixed-amount bonds like this are among the thousands of bond types that issue right after purchase.
File with Securities Regulation
Your executed bond arrives by email, ready to submit with your franchise notice filing. Wet-ink original mailed on request.
What it is and who needs it.
What the franchisor bond actually covers
South Dakota regulates the offer and sale of franchises under the Franchise Investment Act (SDCL 37-5B), administered by the Division of Insurance, Securities Regulation within the Department of Labor & Regulation. The Act lets the administrator protect prepaid franchise fees when a franchisor’s financial condition or other circumstances warrant it.
When that protection is required, Securities Regulation may require the franchise fees to be escrowed and may allow an alternative to escrow case by case. A surety bond is the alternative this page covers, and our carrier writes it at $30,000. It protects franchisees who pay fees before the franchisor performs.
This bond is not a mandate on every franchisor — many franchise filings clear without one. It applies when the administrator conditions your filing on bonding or escrow. If you’re unsure whether your filing needs it, or whether Securities Regulation will accept a $30,000 bond, confirm with them first; we issue it at a flat $150 with no credit check.
You need this bond if you’re
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 $30,000 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; a longer term is the same price per year, chosen at checkout.
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 Securities Regulation. Your executed bond arrives by email, ready to submit with your franchise notice filing. Wet-ink original mailed on request.
What sets the price
The premium is fixed at $150 at the $30,000 amount for every applicant: the carrier’s rate book prices this bond by the form, not by your credit or your business profile.
No credit check.
One application, issued instantly.
These are the actual issuing fields. No credit check.
Start the application →Common questions.
Other South Dakota bonds.
The same bond in nearby states.
Been told you need a different amount?
Price and requirements checked on the carrier’s application, . Page updated .
Franchise fee protection, sorted today.
$150 flat, no credit check, bond often issued in the same sitting. Free until issued.