Franchise bonds, the smart alternative to bank guarantees.

Franchisee First works closely with franchisors and franchisees alike to design an intelligent, secure and collateral-free bonding program to offset the natural credit risks that exist within a franchised business model.

In partnership with

How do our bonds work?

Franchisee First bonds are a simple, cost effective and capital efficient way for a franchisee to meet their security obligations to their franchisor.

Traditional security deposits, such as bank guarantees, often require collateral in the form of cash or at the very least, use of available credit lines.

Franchisee First bonds, on the other hand, are underwritten without a requirement for hard collateral and as such franchisees are free to utilise the cash or credit lines previously tied up by their bank guarantee as they see fit.

In other words, Franchisee First bonds not only protect the franchisor in the event of a default, but they can actually decrease the likelihood of a default in the first place by improving the franchisee's access to their own, previously encumbered, working capital.

At the outset of a partnership our underwriting team work very closely with the franchisor in order to set up a Franchisee First bond solution that meets all of the franchisor's internal security requirements and fits in seamlessly with their existing credit control process. Franchisee First bonds, issued on behalf of Hiscox Insurance Company, are then made available to franchisees as an alternative form of accepted security.

To meet their franchisor's security requirement, the franchisee or dealer purchases a bond online in a matter of minutes.

In the event that the franchisee defaults on their payment obligations, the franchisor can call up the bond, and the guarantor, in this case Hiscox Insurance Company pays the amount of the loss, up to the limit of the bond, immediately.

Why use Franchisee First bonds?


No Collateral

Franchisee First bonds don't require hard collateral, allowing you to use your previously tied up working capital however you see fit.

Quick & hassle free

Franchisee First bonds are quick and easy to obtain online via the Franchisee First website, ensuring the usual scramble to renew your security is over in minutes.

Easy amendments

Franchisee First bonds are quick and easy to amend and update online via the Franchisee First website.

Peace of mind

Franchisee First bonds give your franchisor complete peace of mind that they are adequately protected from your credit risk.

Support growth

Franchisee First bonds allow you to grow your business without having to post extra collateral to support a larger guarantee requirement from your franchisor.


Complete security

Franchisee First bonds give rock solid security as they are guaranteed by Hiscox Insurance, an A (strong) S&P rated company.

Boost access to capital

Franchisee First bonds not only protect against insolvency risk but they actually improve franchisee solvency by boosting their access to working capital.

Complete payouts

Unlike with credit insurance, there are no deductibles or waiting periods and 100% of each loss is paid out up to the pre-agreed bond limit.

Fast payouts

Franchisee First bonds allow franchisors to deal with default scenarios in the fastest and most efficient way possible as bond claims are paid out immediately.

Support growth

Franchise First bonds mean less capital is required to be inefficiently tied up by franchisees, therefore it makes becoming a franchisee much easier and helps franchisors grow their number of franchised outlets.

A partnership for success

The underwriting team at Franchisee First have over 100 combined years of underwriting experience in surety, bonding and credit in the UK and global markets. We know enough to understand that the people with the most in depth and nuanced view of a franchisor's portfolio of credit risks is the franchisor themselves. Therefore we work extremely closely with the finance and credit control functions within a franchisor, at the outset and throughout a partnership to put the best possible solution in place for their franchisees.

The Petrol Retailers' Association and Car Wash Association represents independent petrol retailers, who now account for >65% of UK forecourts, motorway service areas and vehicle washing companies. The PRA/CWA acts as a voice for its members to HM Government, offers members help and advice, provides useful members benefits and keeps them informed as to developments in our fast moving industry

The team at Franchisee First have partnered with Hiscox Insurance Company, as the guarantor of Franchisee First bonds, for several key reasons. Their market leading reputation for the speed, efficiency and quality of their claims service has been recognised time and again by independent bodies. Their financial strength is unquestionable, with a sizeable balance sheet, and A (strong) rating from S&P. That financial strength is further underpinned by a diverse portfolio of risks and a conservative and measured underwriting approach. Lastly, Hiscox intimately understand risk in the SME and HNW sectors and therefore are the perfect long term partner to complement Franchisee First's underwriting skills and stand behind each and every Franchisee First bond.

Claims Excellence AwardCommercial Insurance AwardConsumer Intelligence Award

Get in touch