Virginia franchisor bonds.
From $125.
When the State Corporation Commission wants a franchisor to protect prospective franchisees’ initial fees, the Retail Franchising Act lets the franchisor post a surety bond instead of escrowing those fees. The bond is the amount your registration requires, and premiums start from $125.
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How much does a Virginia franchisor bond cost?
0.5% of the bond amount plus a $25 fee, from $125. 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 the SCC. Here is the whole thing:
Apply online
Your company details, the bond amount your registration requires, and the effective date — that is the application. No credit check up to $100,000.
Issued on the spot
Most applications approve instantly as soon as you pay.
File with the SCC
Submit the executed bond to the Division of Securities and Retail Franchising with your registration, and disclose it in Item 5 of your FDD. Wet-ink originals mailed on request.
What it is and who needs it.
What the franchisor bond actually covers
Virginia registers franchise offerings through the State Corporation Commission’s Division of Securities and Retail Franchising under the Retail Franchising Act (Code of Virginia § 13.1-557 et seq.). When the Commission is concerned about a franchisor’s ability to perform, it can require the franchisor to escrow initial franchise fees until obligations are met.
The rules at 21VAC5-110 let the franchisor post a surety bond in lieu of escrow. The bond amount is generally tied to the initial franchise fee times the number of franchises signed in Virginia but not yet opened — and the franchisor must disclose the bond in Item 5 of its Franchise Disclosure Document.
The bond protects prospective franchisees: if the franchisor takes fees and fails to deliver, the harmed franchisee can recover against it. If the surety pays, the franchisor repays the surety. We issue the amount your registration requires with premiums starting from $125; no credit check up to $100,000.
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 SCC. Submit the executed bond to the Division of Securities and Retail Franchising with your registration, and disclose it in Item 5 of your FDD. Wet-ink originals mailed on request.
What sets the price
The premium is 0.5% of the bond amount plus a $25 fee, $125 minimum: the amount the obligee sets moves the price, not your business profile.
No credit check up to $100,000. 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 your registration requires — no credit check up to $100,000 to fill out, and the executed franchisor bond is typically generated instantly, ready to file with the SCC.
Start the application →Common questions.
Other Virginia bonds.
The same bond in nearby states.
Price and requirements checked on the carrier’s application, . Page updated .
Franchisor bond, issued today.
Premiums from $125. Enter the amount your registration requires and file with the SCC the same day.