VA franchisor bonds.
From $125. Enter your amount.
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. Premiums start from $125, and the application collects no credit information at the standard amount — enter the amount your registration requires and apply to see your exact price.
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Apply to filed in 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 entire application. It collects no credit information at the standard amount.
Issued on the spot
Most applications approve instantly as soon as you pay. Larger amounts may get a quick review, and if a check runs, it is a soft pull that never affects your score.
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; the application collects no credit information at the standard amount.
You need this bond if you are
One application, issued on the spot.
Submit the application with the bond amount your registration requires — no credit fields 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.
Franchisor bond, issued today.
Premiums from $125. Enter the amount your registration requires and file with the SCC the same day.