It is the Illinois Attorney General – Franchise Bureau which regulates the surety bond requirement of certain franchises in the state.
If you are required to post an Illinois franchise registration bond, you’ll want to be sure to check with the licensing department for the amount required, if you have not already.
Our agency will work with the amount you must purchase for licensing purposes.
The Illinois franchise registration bond may be required in instances where an applicant has not demonstrated to the Bureau that they have adequate financial resources to meet certain franchise-related obligations.
The bond may also be required when the Bureau determines that a licensee will obtain finances primarily from the sale of franchises, such that the sale of franchises is the sole source of income and assets.
The bond’s purpose, then, is primarily as a financial guarantee that the licensed franchisee will meet all obligations as they arise.
Up to the bond’s required amount (in total, not per person), the bond allows those who can credibly demonstrate harm, to file against the surety bond to recover any financial harm.
But the Illinois franchise registration bond is not an insurance policy.
Should a claim be filed and paid on the surety bond, as principal, it becomes your obligation to reimburse the surety in full for all costs and fees in the settlement of any claim on your bond.
The amount of the Illinois franchise registration bond you may be required to purchase may be according to the following formula:
The bond’s premium will depend on an application provided by you (which can be completed with an agent), and a standard credit check.
The bond premium amount is reflective of the length of term for which it is issued, 4 years.
The 4 year premium is prepaid one time and then the surety bond is issued.
AmeriPro Surety Bonds is a surety bonds-only agency which provides license and permit, contractor, court, and fiduciary bonds throughout Illinois.
We will work with you to get your bond issued quickly. Once issued, we will have the bond mailed to you or for an extra fee or it can be mailed overnight.
We thank you for your consideration and look forward to working with you.