Concessionaire Surety Bond
A Concessionaire Surety Bond is a type of surety bond required for businesses that operate concessions on public or private property. This bond guarantees the concessionaire will comply with contract terms, pay required fees, and operate according to applicable laws and regulations.
Apply below, call our Commercial Department at 407-786-7770 or email us at [email protected]
Why You Need a Concessionaire Surety Bond
A Concessionaire Surety Bond is required to:
- Guarantee compliance with concession agreements
- Protect property owners and public entities
- Ensure payment of fees, rent, or revenue sharing
- Reduce financial risk for the obligee
- Demonstrate reliability and professionalism
Without the required bond, concessionaires may be denied contract approval or lose operating rights.
Concessionaire Surety Bond FAQs
These are some of the most common questions asked about Concessionaire Surety Bond and how they work.
A Concessionaire Surety Bond ensures that a concession operator fulfills their obligations under a concession agreement. These obligations may include paying rent or percentage fees, maintaining operations, meeting service standards, and returning property in good condition.
If the concessionaire fails to meet these requirements, the property owner or governing authority may file a claim against the bond.
Concessionaire Bond premiums typically range from 1%–5% of the bond amount annually, depending on:
Required bond amount
Length of the concession contract
Financial strength of the concessionaire
Type of goods or services provided
Example:
A $50,000 Concessionaire Bond may cost between $500 and $2,500 per year.
Concessionaire Bonds involve three parties:
Principal: The concession operator
Obligee: The property owner or governing authority
Surety: The bonding company issuing the bond
If the concessionaire fails to meet contractual obligations, a claim may be filed. The surety pays valid claims, and the concessionaire must reimburse the surety.
Concessionaire Surety Bonds are commonly required for:
- Food and beverage concession operators
- Vendors at airports, stadiums, parks, and fairs
- Retail or merchandise concessionaires
- Marina, beach, or recreational facility vendors
- Contractors operating under concession agreements
Bond requirements are typically set by the property owner, municipality, or managing authority.
Call us at 407-786-7770 or email us at [email protected]
What does a Concessionaire Surety Bond cover?
It covers contractual obligations such as payments, performance standards, and compliance with concession terms.
Is a Concessionaire Bond required by law?
It is usually required by contract rather than statute.
How long does a Concessionaire Bond last?
Most bonds are issued for one year and must be renewed for the duration of the contract.
Can one bond cover multiple concession locations?
Sometimes. This depends on the terms of the concession agreement.
How fast can I get a Concessionaire Bond?
Many bonds can be issued within 24–48 hours.