When starting a business, red tape is always in the way and sometime for good reason. When a franchisee causes financial damage a bond claim might not be far away.
Private, beauty, driving and many other schools have surety bond requirements as part of their licensing to operate. Claims against a schools originate when the school is unable to refund prepaid tuition if education can not be provided as offered to its students.
Ag businesses may have surety bond requirements in place as part of their licensing. The State or other businesses under contract can make a claim against the bond.