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Tennessee Franchise Recreational Vehicle Dealer Surety Bonds

recreational vehicles on a sales lot

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The State of Tennessee Department of Commerce and Insurance, Regulatory Boards Division, Tennessee Motor Vehicle Commission is responsible for compliance of state motor vehicle dealer and manufacturer licensing laws, rules and regulations. The Motor Vehicle Commission is tasked with licensing of all franchise and used motor vehicle dealers and salespersons, franchise motorcycle dealers, Franchise Recreational Vehicle Dealers (RV), motor vehicle auctions, motor vehicle manufacturers, vehicle dismantlers and recyclers, and mobility dealers. The Tennessee Code Annotated Title 55 Chapter 17 and Title 55 Chapter 28, provides details on vehicle sales licenses and franchised recreational vehicle manufacture dealer agreements.

Surety Bond and License Requirements:

  1. Complete the vehicle dealer application and pay the applicable license fee.
  2. Complete the Eligibility Verification for Entitlements Act Attestation.
  3. Obtain a $50,000 surety bond and submit the original to the state. The name on the surety bond must match the name used on the application and franchise agreement. The bond and license period is for two years.
  4. Provide a Certificate of Liability of Insurance with a minimum of $300,000 liability insurance per occurrence, include garage liability coverage.
  5. Provide a copy of a current business tax license obtained in the county in which the business will be located.
  6. Obtain business office of at least 288 square feet, a display lot with minimum space for 15 vehicles and signage that meets the Commission requirements.
  7. Provide copy of written approval form a county or municipality entity as to zoning compliance of the business.
  8. Provide a Service Agreement with a repair garage location if the applicants business will not have a mechanic on site.
  9. Provide financial statements with a compilation letter from a CPA that shows a minimum net worth of at least $10,000.
  10. Provide financial disclosure for any owner, partner, director, etc. having a 5% or more stock or share interest in the company.
  11. Provide a copy of a current Sales & Use Tax Certificate issued by the Tennessee Department of Revenue.
  12. Provide a copy of the charter for corporation, LLC, or LLP (if any). If business is an out-of-state corporation or LLC, provide a copy of the Certificate of Authority to do business in Tennessee.
  13. Effective 7/1/17, franchised recreation vehicle dealerships must have a letter of acknowledgement from the manufacturers or distributors.
  14. All salesperson applications must be submitted with the original application.
  15. The applicant must inform the Commission of any "inventory financier’s" or “floor planners” used by the dealership.
  16. Provide a final copy of judgement and or disposition signed by the court of issuance, for any owner, officer, partner, etc. convicted of a felony. Further requirements can be found on the dealer application.

How Much Will This Bond Cost?

The premium that you pay for a Tennessee Franchise Recreational Vehicle Dealer Surety Bond is dependent on credit.

Did You Know?

Each franchise recreational vehicle dealership branch, satellite location or other location requires a separate application and surety bond.

Related Links:

Tennessee Department of Commerce Motor Vehicle Commission
Tennessee Motor Vehicle Dealer Surety Bond

More Surety Bond Questions?

Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, buy from us. SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.


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