Texas — Business Opportunity Seller Bond
Arrange Texas business-opportunity security before making the covered profit representations. Section 51.101 requires the principal seller to secure at least $25,000 in favor of the State before representing that buyers will or are likely to earn profit exceeding their initial consideration, or are otherwise assured of profit.
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- Recorded state
- Texas
- Bond type
- Business Opportunity / Franchise Bond
- Category
- Business operations & taxes
What this bond does
Secure actual damages from covered Business Opportunity Act violations, breach of the opportunity contract or obligations arising from the sale.
- Who needs it
- The legal principal seller of an offer subject to Texas's Business Opportunity Act. Match the actual profit representations, statutory definition and exclusions; the separate notice for a qualifying franchise is not this bond filing.
- Who it protects
- The security favors Texas for the benefit of people damaged by covered statutory or contract failures. Section 51.102 allows an action for actual damages, with aggregate recovery capped at the security amount. Form 2702 also makes the bond limit noncumulative across years or periods.
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
- Texas Business & Commerce Code: targeted Chapter 51 provisions (opens in a new tab)Checked October 27, 2026
- Texas Secretary of State: Form 2702 and instructions (opens in a new tab)Checked October 27, 2026
Have these ready
- Collect the principal seller's actual agreement and profit representations.
- Check the offer's statutory definition, exclusions and required security.
- Match the accepted bond, State-favored protection and sum of at least $25,000.
- Prepare authorized signatures, effective date and Secretary of State filing copies.
- Coordinate the applicable buyer disclosure and sixty-day cancellation instructions separately.
Questions about this bond
Does continuing the bond create a fresh limit each year?
Form 2702 expressly makes the surety's limit noncumulative from year to year or period to period. Its aggregate limit covers all breaches of the bond conditions; continuing coverage does not create a new annual pool.
Is a qualifying franchise notice the same as this bond?
The Act has a separate exclusion for a franchise meeting the federal compliance and advance State-notice conditions in section 51.003(b)(8). Confirm the actual offer and required filing; a franchise notice does not identify or establish this principal-seller bond.
What follows Purchase Now?
Propeller's Texas business-opportunity seller application opens in a new tab. Match the principal seller, actual profit representations, State-favored undertaking, sum, dates and authorized execution before finalizing. File the required security information with the Secretary of State and separately provide the applicable buyer disclosure; purchase is not State approval of the investment.