Franchisor Surety Bond Form - State Of Maryland Securities Division printable pdf download

BOND NO. __________________________

STATE OF MARYLAND

SECURITIES DIVISION

FRANCHISOR SURETY BOND

KNOW ALL MEN BY THESE PRESENTS, THAT

____________________________________________________________________________________________

(Name of Franchisor)

a __________________________________________________________________________________________

(Description or form of business organization, including State of Incorporation), with business offices at

____________________________________________________________________________________________

(Address)

as Principal, and _______________________________________________________ a corporation duly organized

(Name of Surety)

under the laws of the State of _______________________________________________ and authorized to do

business in the State of Maryland, as Surety, are hereby held and firmly bound to the State of Maryland, in the sum

of___________________________________________________________________________________________

Thousand Dollars ($ ______,000.00). For the payment of this sum, Principal and Surety bind themselves, their

representatives, successors and assigns, jointly and severally by these presents.

WHEREAS, Principal has applied for registration as a franchisor to offer and sell franchises in Maryland, as

required under the Maryland Franchise Registration and Disclosure Law, Title 14, Subtitle 2, Business Regulation

Article, Annotated Code of Maryland, (2010 Repl. Vol.) (the Maryland Franchise Law); and

WHEREAS, Principal executes this surety bond under §14-217 of the Maryland Franchise Law, as a

condition of its registration to offer and sell franchises in Maryland;

NOW, THEREFORE, the Principal agrees as follows:

Principal shall obey all applicable rules, regulations and statutes of the State of Maryland, now or

hereafter existing and all other applicable laws now or hereafter existing, affecting or relating to the offer or sale

of franchises and area franchises.

Principal shall in all respects be bound to any and all applicable requirements and provisions required to be in

this bond by existing and future statutes, rules and regulations of the State of Maryland, and laws, the same as

though such requirements and provisions were fully set forth in this bond, and by reference such requirements

and provisions are made a part hereof.

Principal shall in all respects be bound to perform and fulfill, up to and until the time at which a franchisee's or

subfranchisor's business is fully operational, all undertakings, covenants, terms, conditions and agreements of

any contract, or of any modification to a contract duly authorized by the parties to the contract, that the

Principal makes with these franchisees, or subfranchisors.

This bond is for the benefit of the State of Maryland and all persons purchasing franchises and area franchises

from Principal.

This bond shall become effective at _________________ on ____________________________

(time of day)

(date)

It may be cancelled by Surety and Surety relieved of liability with respect to a franchise agreement entered into

by Principal after the effective date of cancellation. Cancellation is effective 90 days after the Maryland

Securities Commissioner and Principal receive written notice from Surety of cancellation. Notwithstanding any

such cancellation, coverage under this bond remains effective with respect to any franchise agreements

entered into by Principal prior to the effective date of cancellation.

___________________________________________

__________________________________________

(Name of Surety)

(Name of Franchisor)

By: ________________________________________

By : ______________________________________

(Signature of Attorney in Fact)

(Signature of Officer, Partner, or Sole Proprietor)

**************************************************************************************************************************************

Approved as to form:

______________________________________________

____________________________________

Assistant Attorney General

Date

Franchisor Surety Bond Form - State Of Maryland Securities Division

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