Maryland — Franchisor Bond
Arrange Maryland franchisor security when the Commissioner accepts a bond instead of an escrow condition. The rule uses initial franchise fees and expected Maryland sales in the next year as a minimum calculation; the Commissioner's actual required amount controls.
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- Recorded state
- Maryland
- Bond type
- Business Opportunity / Franchise Bond
- Category
- Business operations & taxes
What this bond does
Secure completion of the franchisor's contractual obligations to provide real estate, improvements, equipment, inventory, training or other offering items.
- Who needs it
- The legal franchisor responding to Maryland registration review and the actual financial-assurance direction. Match the franchise agreement and Maryland sales forecast, not a franchisee's operating-license application.
- Who it protects
- The escrow rule protects prospective franchisees and subfranchisors by securing the franchisor's promised offering obligations. Its bond alternative must be conditioned on completing those obligations. It should not be presented as a guarantee of business earnings; use the accepted undertaking for the actual parties and claim procedure.
Your bond option
This is the option on record for this bond.
- Bond optionPurchase Now (opens in a new tab)Continue to our secure checkout partner, Propeller (opens in a new tab).
The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.
Sources
- Maryland regulations library: COMAR 02.02.08.08, complete escrow condition (opens in a new tab)Checked October 26, 2026
Have these ready
- Collect the Commissioner's actual escrow/financial-assurance direction.
- Match the legal franchisor, registration and franchise agreement.
- Prepare initial-fee and next-year Maryland sales estimates for the required calculation.
- Obtain the accepted undertaking and confirm actual security, dates and execution.
- Coordinate any request to remove escrow or release funds separately from bond issuance.
Questions about this bond
Is this a fixed amount required of every Maryland franchisor?
The rule permits a bond in place of an escrow condition and requires the Commissioner's amount, with a floor based on initial fees and forecast Maryland sales in the next year. Use the actual review direction rather than a universal fixed sum.
Can I withdraw escrowed funds as soon as the bond is issued?
The Commissioner controls removal of the escrow condition and authorization to release funds under the applicable process. Provider issuance is not that decision; coordinate the actual direction and required supporting certifications.
What follows Purchase Now?
Propeller's Maryland franchisor application opens in a new tab. Match the legal franchisor, Commissioner direction, agreement obligations, accepted form, required calculation and dates before finalizing. Execute and submit the security through the actual registration process; purchase does not remove escrow, release funds or approve franchise sales.