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Washington franchisor bonds.
$775 flat.

When the Washington Securities Division conditions a franchise registration on financial protection, it can accept a $100,000 surety bond in lieu of impounding your initial franchise fees, under the Franchise Investment Protection Act. Ours is $775 flat, issued instantly, with one soft credit pull.

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Accepted by the DFI Securities Division in place of an impound of initial franchise fees it can require under RCW 19.100

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Fixed amount, fixed price — $100,000 bond, $775, no quote theater

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A quick soft credit check may apply — never a hard inquiry, and the price stays $775 either way

A-ratedA.M. Best carriersInstantissued the moment you pay1–3 yrterms available

Trusted by industry leaders

How it works

Three steps to registered.

Your franchise registration is waiting on this bond. Here is the entire process — no broker phone tag:

TODAY · ONLINE

Apply once, online

Company details, ownership, effective date. That is the application — the only extra step is a one-time consent to a soft credit pull.

RIGHT AWAY

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.

WHEN YOU PAY

E-sign & file with the Securities Division

Pay online and receive the executed bond, ready to submit with your franchise registration. Wet-ink originals mailed whenever the Division insists.

About this bond

What it is and who needs it.

What the franchisor bond actually guarantees

Washington regulates franchise offerings under the Franchise Investment Protection Act (RCW 19.100), administered by the Department of Financial Institutions, Securities Division. A franchisor must register before offering or selling a franchise in the state.

When a registrant’s financial condition warrants protection for franchisees’ initial fees, the Division can require an impound of initial franchise fees — and it will accept a $100,000 surety bond, a guarantee of performance from a parent, or a fee-deferral arrangement in lieu of that impound. The bond protects franchisees if the franchisor fails to perform its pre-opening obligations.

It is a three-party guarantee: you (the franchisor), the surety, and the State for the benefit of your franchisees. It is not insurance for you — if the surety pays a franchisee claim, you repay the surety. The $100,000 figure is the standard amount the Division names for this purpose.

RCW 19.100 (Franchise Investment Protection Act)Under the Franchise Investment Protection Act (RCW 19.100), administered by the DFI Securities Division, a franchisor registers before offering franchises in Washington. RCW 19.100.050 lets the Director require the escrow or impound of franchise fees as a condition of registration where that is necessary to protect prospective franchisees. The Act names no bond amount, so any surety bond (commonly $100,000), parent-company guarantee of performance, or fee deferral accepted in place of an impound is set by the Division. Confirm the required amount on your registration with the Securities Division.

You need this bond if you are

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Registering a franchise in Washington and the Securities Division asked for financial protection

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A newer or thinly-capitalized franchisor the Division wants bonded in lieu of impounding fees

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Renewing a franchise registration whose bond condition continues

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Choosing a bond over an impound so you can collect initial fees without escrowing them

One application, issued instantly.

These are the actual underwriting fields, including a one-time consent to a soft credit pull. Submit once and your bond is issued when you pay.

Start the application →

FAQ

Common questions.

Do I pay the $100,000?No. You pay $775, flat. The $100,000 is the surety’s maximum liability if a valid franchisee claim is made; it is not a deposit, and nobody holds your money.

Who requires this bond?The Washington Department of Financial Institutions, Securities Division, under the Franchise Investment Protection Act (RCW 19.100). It can accept a $100,000 bond in place of impounding your initial franchise fees when financial protection is warranted.

Is the bond always required?No. Many franchisors register without a bond. The Securities Division asks for one (or an impound, parent guarantee, or fee deferral) mainly when a registrant’s financial condition warrants protecting franchisees’ prepaid fees. Confirm on your registration.

Is there a credit check?Yes — a quick soft credit check may apply, which never affects your score. It informs approval, not price: the price stays $775 either way. Credit can affect whether we approve the bond, never what it costs.

When does it renew?Terms run 1, 2, or 3 years — your choice at purchase. We send renewal notices 60 and 30 days out, with autopay available, and the bond stays active as long as the Division’s condition continues.

Which A-rated carriers underwrite these bonds?Typically Arch Insurance Company (A.M. Best A+) or Nationwide Mutual Insurance Company (A.M. Best A). Which one writes your bond depends on the bond type and your state. The carrier's name and official signature are printed on the bond you receive.

How do I contact Light RFP about this bond?Email insurance@lightrfp.com. It reaches the bond team at Light RFP Risk Management Services LLC (NY DFS License # PC-1978982). Write to us about quotes, applications, bond forms or certificates. We will respond within 24 hours.

Related bonds

Other Washington bonds.

The Securities Division is waiting on one document.

$775 flat, short application, bond issued when you pay. Free until issued.

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Your price$775

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