Quick Guide to Health Club Bonds

Some states require health clubs to post a Health Club Bond before being issued a license to operate. Each state has its personal names for a Health Club Bond. Some states call it: a) Health Spa Bond; b) Health and Fitness Bond; c) Club Bond; and finally; d) Physical Exercise Club Bond. But what’s in a name? They all have the same purpose.

There are different types of Health Club bonds, including a) Dance Studio Bonds; b) Vacation Club Bonds; c) Dating Club Bonds; d) Massage Establishment Bonds, and e) Buying Club Bonds.

There are certain types of businesses that are required to post health club bonds. These businesses include, but are not limited to, fitness centers, self-defense schools, massage studios, and health spas.

The requirement for Health Club Bond differs in each state as each compels health clubs to apply separate bonds for home offices and branch offices; resident and non-resident offices; and initial health club licenses and renewal licenses.


What is a Health Club Bond?

Like all surety bonds, a health club bond provides a guarantee to customers that health club owners will comply with the laws of the state where they operate. Also, it protects consumers who paid or deposited money for the services of instructors.

Health club bonds also encourage health studios to provide their clients with the lessons and other services stipulated in the contract to the letter because if they fail to comply, the customer will have the option to cancel the contract and receive a full refund of their money.

To determine the requirements for a health club bond application and the type of surety that your business needs, it is strongly advised that you seek the assistance of a competent Surety Bond company. You will find that each Surety Bonding company has its personal underwriting guidelines.

Health Club Bond Requirement in California

Under Section 1812.80 of the California Civil Code, all businesses that want to operate a Health Club or Health Studio in the state of California must post a California Health Studio Bond as required by the Secretary of State of California.

As an Obligee, or the party requiring the bond, the State wants to be protected against any financial losses arising from damages, unethical practice, poor management decisions, or failure to comply with state and local laws from the business owner (the Principal). The California Health Studio Bond holds business owners liable for any damages that may arise from your business management.

Posting a California Health Studio Bond means you are giving guarantees to the state and your clients that you are an honest businessman who will comply with the laws, statutes, and obligations.

How Long Does an Application for a California Health Studio Bond Take?

Typically, an application for a California Health Bond takes only minutes to complete. Underwriters or surety companies offer online applications and approve an application almost instantly.

But to be sure, wait at least an hour for surety bond companies to reply to your application during normal business days. However, if the applicant has some credit issues, then the application for the California Health Bond will require additional time.

A helpful tip is to provide complete information when filling out an application to lower your cost or premium. Underwriters base their computation on your premium from the information you provide on your application. The more details you provide, the bigger chance that the underwriter will have better information and give you the lowest available price. It also helps with the quick approval of your application.

Always keep in mind, the approval of your application for a California Health Bond depends on your personal credit score, financial capacity, history of success or bankruptcies, number of years in business, amount of bond being applied, and the type of bond.

If you need a quote for your Health Club Bond, please call us at 800-333-7800.

Check out this Infographic!

"What are Health Club Bonds?"

Health Club Bond Infographic
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