Maryland Franchise Surety Bond
AmeriPro Surety Bonds | 844-589-9732
Franchises – Maryland
Regulations concerning the administration of franchises in Maryland are overseen by the state’s Division of Securities office. This includes the surety bond requirement.
AmeriPro Surety Bonds offers you the potential to obtain the surety bond required by simply completing an application and with no credit score inquiry.
Amount of Surety Bond Required
According to current regulations, the Maryland franchise surety bond amount that you will post will be in an amount that is equal to the franchise fee, and multiplied by the number of franchises that you expect to sell in Maryland in the following year. (Section 02.02.08.08, F (2) (a)).
The Cost of the Bond: Up to $50,000; Immediate Qualification
Since there are no fixed surety bond amounts for the Maryland franchise bond, our agency offers you this rule of thumb:
- For franchises which require a $50,000, qualification is completed by an application, and the payment of the premium which will be 1% of the bond’s amount for the year. There is no credit inquiry involved.
Additional options exist to prepay the same bond for 2 or 3 years, which will offer you a savings over year to year renewal of this bond at the same amount.
Between $50,001 to $250,000
Our agency offers you the premium amount for 1% annually and without no credit check. However, all of the following below must apply to you. If it does not apply, all that means is that you will undergo the standard underwriting process; you may still qualify for the best rates.
- You have never been convicted of a felony;
- No companies owned or controlled by you have become bankrupt or insolvent;
- You have never had a bond declined, terminated or claimed upon;
- You have no unsatisfied judgments, lawsuits, liens either against yourself or any companies owned or controlled by you;
- You are not using this surety bond to cover anything concerning environmental or pollution exposure;
- You have been in business under the same name, ownership, and location for at least 3 years.
Standard underwriting procedures apply, including a credit inquiry. There may also be a request for a copy of a financial statement.
Each price classification offers you the option to prepay for 2 or 3 years, thereby offering you a savings over year to year renewals.
The Purpose of this Bond
The purpose of the Maryland franchise bond is to serve as a financial guarantee for franchisees that you will provide the real estate, training, and other items needed that a franchisee needs to properly administer their business.
AmeriPro Surety Bonds is a surety bonds only agency. We provide license and permit, court, and fiduciary bonds throughout Maryland.
Our agency also provides surety bonds nationwide.
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