What is a Wisconsin Concessionaire Bond?
A Concessionaire Bond is required by the State of Wisconsin as part of the license requirement before being able to conduct commercial sales or other business activities on a property or premises that is legally owned by a third party.
A concessionaire means any person or firm that runs a business within the premises that belong to a third party (grantor) under a concession. Concessionaires typically sell certain goods or services.
The bond must be put in place to guarantee that concessionaires are responsible for operating in compliance with all state and local statutes or laws. The bond serves as a cash deposit that covers liabilities that the concessionaire may not be able to pay.
A concessionaire pays a third party of the concession a fee or a percentage of their profits. The bond will guarantee these payments to them.
How does the Concessionaire Bond work?
The three parties involved in a Concessionaire Bond includes:
The Obligee: The third party of the concession or grantor that requires the Principal to get bonded.
The Principal: The concessionaire must post a bond to lawfully sell goods, products, and services in a location owned by a third party.
The Surety: The bond company or bond provider that underwrites and guarantees the bond.
The bond guarantees that the grantor will be paid in full and on time by the concessionaire. The bond promises that the grantor is guaranteed payment (rental fees, dues, etc.) from allowing the concessionaire to operate within the grantor’s location of business.
If the concessionaire acts fail to adhere to the bond requirements (defaults on payments or acts fraudulently), then the Surety will cover the claim filed against the principal.
What is the bond amount?
The cost for the bond is only a small percentage of the bond amount, which may range from 1%-5%.
The bond amount is set by the state or municipality and may vary depending on the financial requirement set by the Obligee. The bond amount is the amount of coverage the Surety will pay out to the party harmed if a claim is filed against the bond.
To know more about your bond costs and requirements, get your FREE quote HERE!
How can I obtain a Concessionaire Bond?
In order to secure this type of bond, the applicant (concessionaire) must seek the assistance of a surety bond company.
You will be asked to apply for this bond. If you’re ready to apply for one right now, you may easily do so HERE!
Once the application is received, the surety bond company will immediately process it. A surety bond expert will guide you through the whole process and make sure that you understand all the conditions before issuing the bond.
A certified surety underwriter will evaluate the following:
- Your financial strength
- Your job/business performance history
- Your credit score
- Your copy of the bond form which can be obtained from the Obligee (the third party where you will rent out its space)
Once the pre-qualification process is done, we will execute the bond and send it to you!
To speak with a bond expert, please do not hesitate to call 800-333-7800! We will help you navigate the bonding process and determine the most affordable rate for your situation.