What is a California Health Studio Bond?
Health studios in the state are required to be licensed by the Secretary of State. As a part of the licensing process, the health studio is needed to purchase a health studio bond.
Who Needs a California Health Studio Bond?
Every health studio in the state is required to carry a health studio bond. Health studios are any facility offering instruction, training, or other assistance in body building, exercising, weight loss, and other similar services. This bond does not include any persons licensed in the healing arts, as a nutritionist, or by schools operating under the California Education Code.
Why Do I Need a California Health Studio Bond?
Health studio operators are required to adhere to the rules and regulations for health studios as outlined in Title 2.5, Part 4 of Division 3 of the Civil Code of California. Among other provisions, health studios are strictly prohibited from:
- Acquiring contracts worth more than $4,400
- Procuring contracts for longer than three years
- Requiring payments past the terms of the contract
- Offering contracts where the font type is smaller than 14-point type
- Offering contracts where the cancellation clause is not clearly evident
If the health studio operator is found to have conducted business in any unlawful or unethical manner, individuals or groups of individual who are harmed by the actions can make a claim against the surety bond. When the claim is resolved, the principal is responsible for reimbursing the damages paid out.
How Much Does a California Health Studio Bond Cost?
The required amount of a California health studio bond varies based upon several factors including the services rendered at the studio and amount of business the studio conducts. Health studio operators should verify their bond needs with the state before bonding.
Get Started Today!
To open and operate a health studio, you must first purchase a health studio bond. Don’t delay your application.