Other Commercial
Concessionaire Bond
A bond a concession operator posts with a park, airport, stadium, or other public venue to guarantee it will meet its concession agreement.
- Required by
- Airport authorities, park agencies (including the National Park Service), and public venue owners
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond promises the venue owner, often a government agency, that the concessionaire will follow the concession contract, including paying rent, fees, and commissions. If the concessionaire breaches the contract and the owner suffers a loss, the owner can claim on the bond. The concessionaire must repay the surety for any claim paid.
Who needs it
- Food and retail vendors at airports
- State and national park concessioners
- Stadium and arena vendors
- Rental car concessions at airports
What the underwriter looks at
- Concessionaire financial statements
- Annual fees owed under the contract
- Operating history
- Owner's personal credit for small operators
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
How is the amount set?
By the concession agreement, often tied to a year of expected rent or fees. Each agency writes its own requirement.
Can a bond replace other security?
Sometimes. The National Park Service allows a surety bond to cover the gap when a concessioner's insurance deductibles exceed what its contract allows.