Franchise Motor Vehicle Dealer Bond

Florida Franchise Motor Vehicle Dealer Bond

$25,000 franchise dealer surety — FLHSMV

Franchised motor vehicle dealers file a $25,000 surety bond or irrevocable letter of credit with FLHSMV on Form HSMV 86020 under Fla. Stat. § 320.27(10)(a).

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Overview

What is this bond?

The Florida franchise motor vehicle dealer bond is the $25,000 surety or letter of credit franchised dealers file with FLHSMV under Fla. Stat. § 320.27(10)(a) on Form HSMV 86020.

Surety Obligation Overview

What Does This Bond Guarantee?

Principal
The party required to obtain the bond and perform the underlying obligation.
Obligee
Florida Department of Highway Safety and Motor Vehicles
Surety
The company issuing the bond and guaranteeing the obligation to the obligee.
Bond terms

Bond summary

Amount, premium, term, and the authority that requires this filing.

Eligibility

Who Needs This Bond?

Franchised dealers licensed under Fla. Stat. § 320.27(1)(c)1 — not independent or used-only dealers.

Who Is Required to File
  • Franchised motor vehicle dealers (VF license) under § 320.27(1)(c)1
  • New franchise dealers applying for an FLHSMV dealer license
  • Franchise dealers renewing the surety on Form HSMV 86020
Requirements

What You Need to Apply

FLHSMV requires the $25,000 surety on Form HSMV 86020 as part of the franchise dealer license package.

Required Documentation
  1. Completed HSMV 86020
  2. Dealer license application through FLHSMV
  3. Business location and insurance as required for VF license
Filing

How this filing works

  1. 01

    Confirm franchise dealer class

    You hold or are applying for a franchised (VF) dealer license — not independent/used (VI).

  2. 02

    Apply for the bond

    Use Apply on this page for the Florida FRANCHISE Motor Vehicle Dealer Propeller class.

  3. 03

    File with FLHSMV

    Submit the executed bond with your dealer license application or renewal. Franchise licenses expire December 31 (§ 320.27(4)(a)).

FAQ

Frequently Asked Questions

How much is the franchise dealer bond?

Fla. Stat. § 320.27(10)(a) requires $25,000 for motor vehicle dealers, including franchise dealers.

What form does FLHSMV use?

Form HSMV 86020.

Is franchise different from used?

The penal sum is the same $25,000, but franchise dealers are licensed under § 320.27(1)(c)1 and use the FRANCHISE Propeller class — not the USED class.

Authority Resources

Florida Department of Highway Safety and Motor Vehicles (FLHSMV)

flhsmv.gov

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Need more than a bond? Through the same agency desk we can discuss commercial coverage for the whole business.

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