North Carolina Business Opportunity Bond

North Carolina Business Opportunity Bond

North Carolina business opportunity sellers wishing to sell or lease any products, equipment, supplies, or services for the purpose of warranting the purchaser to start a business must be registered with the Secretary of State. Under this registration, the Secretary of State requires business sellers to also obtain the $50,000 Business Opportunity Bond. The bond is a financial guarantee for any person who is harmed by the seller’s breach of contract.

PURCHASE BUSINESS OPPORTUNITY BOND

The Jet team writes the Business Opportunity Bond directly, which allows us to eliminate the middleman and take care of the bond filing process for you. Our team is committed to enhancing efficiency in order to maximize your time and savings. 

What Is the Bond Limit and Cost for the Business Opportunity Bond?

When you purchase with Jet, the Business Opportunity Bond can cost as low as $500 annually or $50 monthly. You can find an example below of preferred credit applicants monthly and annual rate options.

The underwriting process will evaluate criteria such as personal credit and business information to determine the cost of the bond. This process is quick and the Business Opportunity Bond will be ready for you to purchase right away.

What Is the Filing Process for the North Carolina Business Opportunity Bond?

The Jet team can file the bond for you! A copy of the signed and sealed bond must be on file with the North Carolina Secretary of State’s office in order to initially apply for and maintain a registered status. Once all information has been submitted through the online bond application, Jet will file the bond to the Secretary of State and send you a copy for your personal records.

For those applying for registration, the Secretary of State has a list of required registration documents that will need to be completed. If you prefer to send the bond in with the registration packet, the Jet bond application process allows you to select that option. All paperwork should be mailed to the address below.

NC Secretary of State
Business Opportunity Sales
Post Office Box 29622
Raleigh, North Carolina 27626-0622

Why Is the Business Opportunity Bond Required by the Secretary of State?

The North Carolina Secretary of State defines a business opportunity as a sale or the lease of any products, equipment, supplies, or services for the purpose of enabling the purchaser to start a business with said products or services. Registration is required by the Secretary of State to ensure that business opportunity sellers are following state regulations such as meeting quality business standards, all contractual obligations, and are financially responsible when conducting business with purchasers. The Business Opportunity Bond is an additional tool used by the Secretary of State as a guarantee that any person who is financially harmed by the seller’s breach of contract will be reimbursed for said damages.

How Do Claims on the Business Opportunity Bond Arise?

Business opportunity sellers are expected to follow all registration rules in accordance with North Carolina General Statutes Article 19, Chapter 66. Failure to comply may result in suspension or revocation of the seller's registration status by the Secretary of State or a damaged purchaser may take civil action that could result in a bond claim. Below are a few key reasons why a claim would arise:

The seller uses any untrue or misleading statements in the sale of the business opportunity that causes financial harm to purchaser
The contract fails to comply with requirements of the above statutes
The seller breaches contract with purchaser in any way

All complaints submitted to the Secretary of State will be reviewed and investigated by North Carolina's Attorney General. It is in the best interest of the seller to work with the Attorney General or directly with the damaged purchaser on resolving the complaint before civil action for a bond claim is pursued by the purchaser. Any purchaser harmed by a violation of registration regulations or by the seller’s breach of contract may take action for the recovery of damages.

In cases where the Attorney General finds the received complaint to be justified; the purchaser may be advised to bring civil action on the seller's bond. If the bond claim is proven valid by the civil courts as well, the bond will pay for the recovery of damages to the purchaser and a reasonable attorney’s fee fixed by the court.

What Happens If a Claim Is Filed on the Business Opportunity Bond?

Immediately contact Jet upon receipt of the court ordered bond claim payout notification! Jet will proceed with a review of the claim details and the court investigation. The Jet team does its best to protect bond holders from unjust claims, but there is little we can do when the claim comes from a state court that has already conducted an investigation and determined the claim’s legitimacy.

If the claim is validated by the courts, Jet will make payment up to the bond limit to cover the ordered recovery payout and attorney fees. The business opportunity seller is ultimately responsible for their actions and must reimburse Jet for the paid out bond claim. Failure to do so will result in future difficulties obtaining the required Business Opportunity Bond. It is important to note that failure to register and acquire the Business Opportunity Bond is a Class 1 Misdemeanor offense.

How to Apply for the Business Opportunity Bond

Jet takes pride in making the application process quick and easy! Our online process for the Business Opportunity Bond asks for basic information about the seller such as their personal and business information and social security number. For an approved rate, a soft credit check will be completed in seconds. Once you select the monthly or annual option and complete the payment, Jet will file the bond for you and send you a copy for your records

PURCHASE BUSINESS OPPORTUNITY BOND

Does the Business Opportunity Bond Expire in North Carolina?

Other surety companies will charge a yearly renewal fee and require additional paperwork, but Jet wouldn’t do that to you. If you choose to make monthly payments, there is no need for a bond renewal. The bond will remain active as long as your monthly payments are received. 

If you choose to make annual payments, Jet will send a renewal invoice prior to the bond’s expiration date. We do not require any extra paperwork, payment is all that is needed.

Can I Cancel My Business Opportunity Bond and Get a Refund?

You can cancel at any time with Jet! Upon receiving your notice (email is fine), Jet will file a cancellation notice with the North Carolina Secretary of State. There will be a 30-day cancellation period in which the bond will remain on file following the date of the filed notice.

If you choose to make monthly payments for the bond, Jet will charge for that 30-day period as the bond is still technically active. If you choose the annual payment option, Jet will review your bond to see if there is any premium left on the bond available for reimbursement. 

The Business Opportunity Bond is required in order to maintain a registered status with the Secretary of State. If the bond is cancelled, the registration will be in violation of the statutes. A new bond will need to be issued if this occurs, which can be done easily with Jet, in order to renew your registration.

North Carolina Business Opportunity Bond Form

Notary Bond Application:

X

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

X

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

X

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: