What is a concessionaire bond?
Concessionaire bonds are non-construction contract bonds that businesses must post to operate on another party’s property. A “concessionaire” has the right to use someone else’s land or property for a specific purpose (called a “concession”). For example, a concessionaire may sell a product or run a business in a building that belongs to another party. An individual, group, or business (concessionaire) is granted a concession by the grantor to sell products or services on the grantor’s premises. Typically, the concessionaire will pay the grantor a fee to use their property. For example, a band may pay a concert venue to rent the facility for a weekend. A concessionaire bond ensures that the grantor receives full payment from the concessionaire. The concessionaire must abide by the terms of the contract with the grantor. The bond can also serve as a security deposit. Both public and private property owners may require concessionaire bonds before allowing a business to operate on their premises.
Get Your Concessionaire Bond:
Quick Takeaways
- Concessionaire bonds are non-construction contract bonds that businesses must post to operate business on another party’s property.
- A concessionaire bond ensures that the grantor receives full payment from the concessionaire. The concessionaire must abide by the terms of the contract with the grantor.
- Both public and private property owners may require concessionaire bonds before allowing a business to operate on their premises.
- Your state should set your bond requirement for public concessions. Private landowners can set the requirement for private concessions.
What states require concessionaire bonds?
Many states may require this bond, including the ones we’ve listed below. If your state isn’t listed, you may still need a concessionaire bond. Call us at (888) 435-4191 if you need to confirm your surety bond requirements!
- California
- Nevada
- Colorado
- Arizona
- Washington
- Texas
- Illinois
- Indiana
- Michigan
- South Carolina
- Virginia
- Florida
- Georgia
- New Jersey
- New York
How much does a concessionaire bond cost?
To purchase your surety bond, you will pay a small percentage of the bond’s value. Typically, the better your credit score is, the lower your premium rate will be. Your state should set your bond requirement for public concessions. Private landowners can set the requirement for private concessions. We will look at your credit score, financial statements, and other information to set your bond premium. Let’s say you need a $5,000 bond and have an excellent credit score. If your premium rate is 1%, you’d only pay $500 for the bond.
How do concessionaire bonds work?
A concessionaire bond protects the grantor (obligee) in the surety agreement. It ensures that the concessionaire (principal) abides by the terms of the deal, including paying rent and other fees – in full and on time. If the concessionaire breaks their contract, the grantor can file a claim against the surety bond. The surety will then step in to settle the claim upfront, but the concessionaire must repay the surety in full. Claims can be made up to the total value of the bond.
Can I get this bond with bad credit?
If you have poor credit, you may still be able to get bonded. Your premium rate will likely be higher. However, it’s possible to improve your premium rate by boosting your credit score over time.
How to Get Your Concessionaire Bond
ZipBonds offers the fastest and most secure option for getting the surety bonds you need. Our all-digital platform is intuitive and straightforward. Apply online or call us at (888) 435-4191 to speak with an agent directly. We’ll help you get bonded in a zip!
About ZipBonds.com
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.