What is a Maryland Health Club Bond?
See why this surety bond matters to your business!
As part of the registration requirement, health club facilities that offer health club services must submit a surety bond to the Consumer Protection Division of the Office of the Attorney General.
The surety bond should cover the following:
- The monies received by the health club facility in advance from the members minus the prorated value of services rendered. This includes membership fees, initiation fees, prepaid fees, dues, deposits, and fees for health club services.
- The outstanding liabilities or the amount that will be refunded to the members in case the health club facility closes down.
It will be conditioned that the health club facility conducts its services in accordance with the applicable laws and rules.
An action can be taken against the bond if the registrant commits misconduct or violates the aforementioned laws and rules.
What is the Health Club Bond amount?
$50,000 – the bond amount for first-time health club facility registration applicant
$50,000 – $200,000 – the bond amount for renewals will depend on the health club facility's outstanding liabilities.
This will be determined by the Consumer Protection Division of the Office of the Attorney General based on the report prepared by a certified public accountant describing the outstanding liabilities.
If you have an excellent credit score, you will be eligible to pay for a low bond premium or just 1% of the bond amount!
Check out what you need to pay by getting your FREE SURETY BOND QUOTE HERE!
How can I obtain a Health Club Bond?
We’ve made it easier for you! Just follow the simple steps below!
STEP 1: Apply for the bond
You need to submit a bond application to us. If you’re ready to apply now, you may do so HERE!
STEP 2: Underwriting
We will ask you for a couple of important information needed for the bond. This will include your financial history, business performance history, and your credit score. An underwriter will carefully evaluate all those.
STEP 3: Bond execution
Once the underwriter is done with the underwriting process, we will immediately issue the bond and send it to you!
What are the surety bond conditions?
- The surety bond should be issued by a surety bond agent or company that is authorized to conduct business in the State of Maryland
- The surety bond’s amount may be increased or decreased depending on the health club facilities outstanding liabilities.
- The registered health club facility must obey the provisions of Title 14, Subtitle 12B of the Annotated Code of Maryland as well as the rules and regulations of the Consumer Protection Division of the Office of the Attorney General of the State of Maryland
- If the registered health club facility commits a violation, the aggrieved party will be eligible to file a claim against the surety bond