What is a California Franchise Investment Law Bond?
Franchise investors in California are required to secure a California franchise investment law bond to protect the general public and the State from any damages that result from unlawful actions.
Who Needs a California Franchise Investment Law Bond?
When investing in a franchise, franchisers must register with the California Department of Corporations before conducting business. To receive proper licensing and approvals, the investor must first purchase a California franchise investment law bond.
Why Do I Need a California Franchise Investment Law Bond?
By purchasing a California franchise investment law bond, the franchise investor and any agents or employees agree to adhere to the provisions of the Franchise Investment Law, as well as any additional regulations made by the Commissioner of Business Oversight. If the franchise investor or any agents of the company act unlawfully, resulting in a financial loss to the State or any individuals, the harmed parties can make a claim up to the full amount of the surety bond. The principal is responsible for reimbursing the surety for all damages and associated legal fees.
How Much Does a California Franchise Investment Law Bond Cost?
Unlike other surety bonds, California franchise investment law bonds vary widely depending on the origination activities conducted by the franchise investor in the previous calendar year. Due to this variation, the applicant should verify their required bond amount with the state before bonding.
Get Started Today!
To become a franchise investor, you must first purchase a franchise investment law bond. Don’t delay your application.