Minnesota — Franchisor Bond
Arrange Minnesota franchisor financial assurance when Commerce accepts a bond instead of impoundment. Bring the actual registration record and the Minnesota opening projections in Item 20 of the Franchise Disclosure Document. This is conditional financial assurance, not a universal bond for every franchise location.
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- Recorded state
- Minnesota
- Bond type
- Business Opportunity / Franchise Bond
- Category
- Business operations & taxes
What this bond does
Secure the franchisor's contractual obligation to provide real estate, improvements, equipment, inventory, training or other promised items before the franchise business opens.
- Who needs it
- The legal franchisor named in the Minnesota registration and franchise contract. Match its organization, business office and registration number; a franchisee's local operating license is a separate matter.
- Who it protects
- The State's complete form benefits Minnesota and persons purchasing franchises from the principal. The Commissioner and a franchisee damaged by the specified pre-opening nonperformance have rights of action for the covered loss. It does not promise business profitability or cover every later commercial dispute.
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
Have these ready
- Collect Commerce's actual financial-assurance direction and Minnesota registration number.
- Prepare the initial-fee and Minnesota Item 20 projection calculation.
- Match the legal franchisor, franchise contract and specific effective date/time.
- Arrange principal and surety signatures and both notarized acknowledgments.
- Attach the surety's power of attorney and certified corporate resolution; leave office-only approval to the State.
Questions about this bond
Does every franchisor automatically need this bond?
Commerce considers whether adequate arrangements exist to fulfill the offering obligations. A bond is an alternative to impoundment when financial assurance is required. The separate fee-deferral route runs until the franchisee opens and must appear in the Minnesota FDD addendum and franchise agreements.
Does cancellation end protection for earlier franchise agreements?
The form keeps coverage for agreements entered before cancellation becomes effective. The 30-day period starts only after both the Commissioner and principal receive the surety's written notice; it is not an automatic release of those earlier agreements.
What follows Purchase Now?
Propeller's Minnesota franchisor application opens in a new tab. Match the legal franchisor, registration/contract, State and franchisee protection, pre-opening condition, required calculation and effective dates before finalizing. Execute and file the accepted security with the required acknowledgments and authority documents; purchase does not make the registration effective or authorize franchise sales.