What is the Texas Health Spa Bond?
Get detailed information about this bond and how to get it!
The Texas Health Spa Bond is an obligatory component of the Texas Occupations Code 702, also known as the Health Spa Act. Every health spa operator that seeks an issuance of a certificate of registration is mandated to obtain a surety bond.
What is the Health Spa Bond for?
The surety bond will serve as a financial security for the benefit of the health spa members. The purpose of the surety bond is to cover any actual financial loss (dues or fees) by the health spa members in case the health spa closes down.
Principal – Health Spa Operator who will pay for the surety bond
Obligee – Health Spa Member who will benefit from the surety bond
Surety – Surety bond company who will issue the necessary bond
What are the requirements for this surety bond?
- The bond should be issued by a legitimate surety bond company that is licensed in Texas such as Surety Bond Authority
- The bond conditions should follow the provisions of the Insurance Code
- The bond will be valid unless terminated
The surety bond application (Form 3002) should include the name and address of the health spa; the name of the surety bond company; the date on which the bond will become effective; the authorized signatories of the health spa and the surety bond company; and the bond amount.
How much is the bond amount?
The bond amount will depend on the total prepaid membership amount in your health spa location.
|Total Amount Paid for Prepaid Membership||Bond Amount|
The surety bond cost will depend on which bond amount you fall under and other several factors such as your credit standing. Those who have an excellent credit score can pay as little as 1%!
Other requirements that you need for your Health Spa Certificate of Registration Application
- You must complete and submit the Health Spa Registration Application (Form 3001) that includes the following:
- The health spa owner’s business trade name
- The health spa owner’s name, address, and contact number
- The health spa’s address
- The services offered at the health spa
- For corporations: the owner’s business name that’s been registered with the secretary of state, the business office location, and the names of the co-owners of the health spa that controls 10 percent or more shares of stock in the business.
- The operator of the health spa and the date in which the one applying for the certificate of registration became the owner of the business.
- Attach a sample of your health spa membership contract
- Pay the necessary filing fee of $100
- Attach the surety bond to the application upon submission
If you need further information about the Health Spa Bond, do call us today! We’ll be happy to assist you!