The SAG-AFTRA franchise bond is a surety bond that a talent agency posts in favor of the Screen Actors Guild – American Federation of Television and Radio Artists (SAG-AFTRA) as part of becoming a franchised agency. Franchised agencies can represent SAG-AFTRA members under the union’s rules for agents.
What the Bond Guarantees
Under SAG-AFTRA’s surety bond form, the agency (the principal) and the surety guarantee that the agency will comply with:
- SAG-AFTRA’s Regulations Governing Agents (Rule 16(g) and/or Rule 12C), and
- State talent agency laws that apply to the agency.
The bond protects any person who suffers an actionable injury, loss, or damage — including reasonable costs and attorney’s fees — from the agency’s wrongful conduct. The surety’s total liability is capped at the bond amount no matter how many claims are made.
How Much Is the Bond?
SAG-AFTRA sets the required amount as part of the franchise process, and it’s written into the bond form. Check your franchise application or ask SAG-AFTRA for the amount that applies to your agency, and we’ll issue the bond for that amount.
SAG-AFTRA Bond vs. California Talent Agency Bond
They are two different bonds with two different obligees:
- California talent agency bond: $50,000, required by state law (Labor Code § 1700.15), deposited with the Labor Commissioner.
- SAG-AFTRA franchise bond: required by the union for franchised agencies, filed with SAG-AFTRA on its own form.
A franchised agency in California generally needs both. We can place them together.
Filing and Cancellation
The completed bond form goes to SAG-AFTRA’s New York or Los Angeles office. The bond is continuous for the franchise term, and the surety must give SAG-AFTRA 30 days’ written notice by registered mail to cancel — the surety stays liable for defaults during that period.
How Much Does It Cost?
You do not pay the full bond amount. You pay a premium — a percentage of the bond amount based mainly on your personal credit and business history. We submit your application to several surety companies, and each sets its own rate, so your premium depends on which surety approves you and isn’t set until you’re approved. If one surety declines, we go to the next.
How to Get Your SAG-AFTRA Bond
- Tell us the bond amount SAG-AFTRA requires for your franchise.
- Complete a short application — we handle the underwriting.
- Get approved and pay your premium.
- We issue the bond on SAG-AFTRA’s form for you to submit with your franchise.