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North Dakota franchisor bonds.
From $100.
When a franchisor registers a franchise in North Dakota, the Securities Department can condition approval on a surety bond if the company is thinly capitalized. The examiner sets the amount — enter that figure — pricing is 1% of your bond amount, with a $100 minimum, calculated at the application.
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Three steps. One sitting.
Your franchise registration is waiting on this bond. Here is the whole process — no broker phone tag:
Apply online
Your business details, your state of incorporation, the bond amount the examiner set, and the effective date — plus a one-time consent to a soft credit pull. That is the entire application.
Approved
Most are approved as soon as you apply. The credit check is a soft pull that never affects your score. If it needs a second look, one to two business days at most.
File with the Securities Department
Pay online and receive the executed bond, ready to file with your franchise registration. Wet-ink originals mailed whenever the state insists.
What it is and who needs it.
What the franchisor bond actually covers
North Dakota regulates the offer and sale of franchises under the Franchise Investment Law (N.D.C.C. ch. 51-19), administered by the Securities Department. A franchisor must register before offering franchises to North Dakota residents, and the examiner reviews the franchisor's financial condition as part of that review.
When the examiner finds a franchisor is undercapitalized — without enough net worth to cover the initial obligations it owes new franchisees — registration can be conditioned on the franchisor either deferring receipt of initial franchise fees or posting a surety bond. The bond is a capital cushion that protects franchisees.
The bond guarantees the franchisor will perform its obligations and honor the promises in its franchise agreements and disclosure documents. If a franchisor fails — for example, by not delivering the agreed pre-opening support a franchisee paid for — the harmed franchisee can recover against the bond. The amount is set by the examiner; enter that figure and your exact price is 1% of that amount, with a $100 minimum.
You need this bond if you are
One application, issued instantly.
These are the actual underwriting fields, including your state of incorporation and a one-time consent to a soft credit check. Submit once and your bond is issued when you pay.
Start the application →Common questions.
Other North Dakota bonds.
Franchisor bond, ready to register.
Priced at 1% of your bond amount, with a $100 minimum. Enter the amount the examiner set and file the same day.