Virginia Franchise Surety Bond is a type of surety bond required by the Commonwealth of Virginia for franchisors who wish to offer a franchise in the state. This bond guarantees to the state of Virginia that the franchisor will comply with all the laws and regulations of the Franchise Investment Law. The Virginia Franchise Surety Bond is a three-party agreement between the franchisor, the franchisee, and the surety company. The bond must be purchased by the franchisor and is issued in the amount of $25,000. The bond guarantees that the franchisor will fulfill all the obligations stated in the franchise agreement including payment of all fees and taxes, as well as compliance with all applicable laws and regulations. There are two types of Virginia Franchise Surety Bonds: the standard bond and the alternate bond. The standard bond is the most common form of Virginia Franchise Surety Bond and is required for all franchisors. The alternate bond is used for businesses that are exempt from certain requirements of the Franchise Investment Law.
Virginia Franchise Surety Bond
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How to fill out Virginia Franchise Surety Bond?
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FAQ
Virginia surety bonds typically guarantee the performance of a contract or that an individual and/or their company complies with the rules and regulations that govern their particular industry.
To sell motor vehicles in the commonwealth of Virginia, you must provide a $50,000 surety bond. Whether you're a new or used car dealer, this bond is required when you apply for your license to the Virginia Motor Vehicle Dealer Board.
If you operate as a money transmitter in Virginia, you must post a surety bond. If you are under contract to complete a construction project, you may need to be bonded. If you engage in the business of selling, purchasing or trading precious metals or gems in Virginia, you must be bonded.
A Franchise Surety Bond is a surety bond that protects a government or state against loss due to a franchise holder's failure to complete work specified in the franchise grant.
The Virginia Retail Franchising Act governs the offer and sale of franchises in Virginia. The goal of the Virginia Retail Franchising Act is to provide presale disclosure and other protections for prospective franchisees.
The main difference between a cash bond and a surety bond is the number of parties involved. Cash bonds only involve two parties, you and the owner. In a surety bond, there is a third party, the surety company. The term surety refers to any party that guarantees the payment of a debt or performance of a contract.
The Virginia Contractor License surety bond can cost anywhere between $350 to $2,500 per year or $35 to $250 per month. Insurance companies determine the rate based on a number of factors including your customer's credit score and experience.