Virginia Franchise Bond |
AmeriPro Surety Bonds | 844-589-9732
Franchise Companies – Virginia
Franchise companies in the Commonwealth are regulated by the State Corporation Commission.
By statute, such franchises are regulated by the Virginia Franchise Act, Chapter 8 Code of Retail Franchising.
AmeriPro Surety Bonds provides the franchisor bond for both new (first time) and renewal surety bond applicants.
Virginia Franchise Bond: Amount Required And the Cost
Commonwealth statutes give no specific amount for a Virginia franchise bond. Instead, we are informed that the surety bond will be in an amount that the Commission requires.
Although no specific amount is stated by the Commission, we can still offer some very general rules as to the bond pricing.
The cost of the Virginia franchise bond will be predicated upon the following:
- Information provided on the surety bond application;
- The amount of the bond itself;
- Credit history;
- Financial statements (perhaps);
Other factors as deemed necessary, depending on the bond amount.
As a very broad general rule, an applicant with decent credit may pay 2% of the bond’s amount; however, the amount that you will pay will be determined by the above criteria.
Duration of the Bond:
Once purchased, unless otherwise noted, the Virginia franchise bond is active for one year from the date of issuance. Thereafter, the bond must be renewed.
There may be some instances in which your franchise bond can be prepaid for several years, thereby offering you a substantial savings over a year-over-year surety bond renewal.
The Purpose of this Surety Bond
The purpose of the Virginia franchise bond is, in part, a financial guarantee which ensures your compliance with all rules governing franchising in the Commonwealth, whether or not your business is domiciled in Virginia.
As stated by statute, the bond is conditioned upon any payment of both civil and criminal penalties for the violation of any portions of the Act.
The bond is also conditioned to protect any franchisees and the public for any violations of the act.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit, contractor, court, and fiduciary surety bonds throughout the Commonwealth.
Our agency also provides surety bonds nationwide.
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