Business Opportunity Bond Guide
If you are planning to sell a business or franchise location, you may need a business opportunity bond. Read on to learn more and get your quote today.
Bond Overview
- Purpose: To protect potential business opportunity buyers from financial harm due to fraud or malpractice
- Who Needs It: Individuals selling a business opportunity (franchise, products, services or equipment for starting a business)
- Required Amount: $25,000–$75,000, varies by state
- Premium Rates: Typically 0.5%–4% of the bond amount, credit-based
What Are Business Opportunity Bonds?
Business opportunity bonds are a type of commercial bond which act as a financial guarantee that you will follow government rules and regulations. This protects potential buyers and the state from financial harm if a business opportunity seller breaks contract terms or acts fraudulently.
We also issue franchisor surety bonds in several states which are a sub-type of business opportunity bond.
How Much Do Business Opportunity Bonds Cost?
Business opportunity bond premiums are credit-based and typically cost 0.5–4% of the bond amount. Select your state below to apply and receive a personalized quote.
How Do Business Opportunity Bonds Work?
By purchasing this bond, you enter a legal contract between three parties:
- Principal: You, the business opportunity seller purchasing the bond
- Obligee: The government entity requiring the bond
- Surety: The company providing the bond
The purpose of a business opportunity bond is to guarantee a principal will follow applicable laws and uphold contracts in the sale of a business opportunity.
If the principal violates the terms, the surety will pay financial damages to affected parties which the principal must reimburse.
How to Get a Business Opportunity Seller Bond
At SuretyBonds.com, we provide the quickest and easiest bonding process. To get a business opportunity bond, complete the following steps:
- Apply online at SuretyBonds.com
- Get a free quote within one business day
- Buy online or over phone
- Receive your bond documentation*
- Sign and submit the bond form to your obligee
*Note: Your obligee will dictate whether you need a physical or a digital bond form copy, or the original.
How Do I Renew My Business Opportunity Bond?
Business opportunity bonds expire annually. A SuretyBonds.com representative will contact you during the renewal period to discuss next steps. If you have any questions, refer to our Surety Bond Renewal Guide or call 1 (800) 308-4358 to speak with a team member.
