Texas Health Spa Surety Bonds

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Who Is Required To Purchase a Texas Health Club Bond?

If you're a health club/studio/gym and you sell prepaid memberships you must purchase this surety bond.

The amount of the bond will be related to the dollar amount of memberships you're pre-selling.

Your bond amount will affect the price you have to pay to get your bond issued, but first let's talk about why this bond is being required by the state.

Why is a Texas Health Spa Bond Required?

As you know, health clubs and spas must obtain a certificate or registration through the Office of the Secretary of State.

This registration allows the state to ensure all health clubs are operating using the same laws. And one of these is how pre-paid memberships are handled.

The health club surety bond is how the state holds these clubs accountable to their actions and following the law.

The surety bond is required to protect their members from a club that:

• Steals from customer pre-paid deposits
• Charges for fraudulent deposits
• Mismanages fees and prepaid fees for memberships
• Fails to deliver services or takes money after closing a facility down

If a club is reported and found guilty, the state and/or the members affected can make a claim on the club's surety bond for the financial damages they suffered.

If the claim is determined legitimate, it will pay out and you as the health club operator must pay back the insurance company that underwrote your bond for the amount of the claim.

The total amount of any single claim or the sum of multiple claims is capped by the bond amount you're required to get from the table above.

How Much Does a Texas Health Club Bond Cost?

Most surety bonds are credit driven. This means the primary factors that will influence the price you'll pay are:

• Your specific bond amount
• The personal credit of the owner or owners
• Business industry and experience
• Prior bond history if an owner has been bonded in the past

The insurance company that specifically underwrites health club/spa bonds is called a surety. And the surety will use the above factors to determine a rate.

This rate multiplied by the bond amount is the price you'll pay.

This is how you will be able to save many hundreds of dollars when you purchase your bond.

How We Can Save Your Hundreds Of Dollars

We are Surety Bonds Direct, a specialized surety agency and it's our job to find you the lowest possible price on your surety bond.

We work with our network of A-rated sureties to price shop for you and find the lowest possible price.

If you need the minimum, $20,000 bond amount, we have already secured a low price of $200 with no credit check required.

All bond amounts over $20,000 will require the personal credit of all owners.

The crazy thing is how different sureties price bonds. We do this every day across many verticals and it's common for two different sureties to quote a rate for the same applicant that is 1% to 3% or more different.

That difference is how we'll save you a lot of money.

Let's look at example pricing so you can see how one to two percentage points affect the price you pay.

For example pricing, we'll use a bond amount of $35,000.

Purchasing your bond is a one time payment for a 12 month bond term. More on this below.

You can see how saving 1% and especially 2% on your bond rate means a lot of money.

This is money you can send on application fees or facility setup fees.

Get Your Personalized Pricing With No Obligation To Buy

Get your pricing today so you know exactly what you're looking at.

All you have to do is complete our online price quote request form and a bond specialist will help you save money.

The best part is you don't have to purchase from us. So get your pricing by completing the form or you can call a bond specialist at 1-800-608-9950.

How Long Does the Texas Health Club Surety Bond Last?

As long as you're accepting pre-paid memberships you'll need to have an active bond on file. If you get to a point where you no longer accept or offer pre-paid membership you can let your bond expire at its renewal date.

As long as you're collecting pre-paid memberships, you'll need to have a bond on file.

Purchasing your health club surety bond is a one time payment for a 12 month bond term.

Purchasing your bond is easy. You just complete an online order form and during this process you'll choose a bond activation date.

This date will become your renewal date for future bond needs.

After you pay for your bond, our bond issuance team will prepare your bond:

• On the correct bond form
• With the required signatures
• The required seals
• And the power of attorney

This process typically only takes 1 business day to complete.

The Department of Consumer Credit requires the original bond with your physical signature on it. This means we'll have to mail you a copy. Make sure you account for a few extra days.

Renewing Your Texas Health Club Bond

During the renewal process, you'll get an email and call from your bond specialist with pricing ready to go.

If you need to add a new bond for a new location or adjust the value of your current bond, you can do so during this time.

Once you pay your renewal premium, you're done. The bond you have on file remains active automatically.

If you need to amend your bond, you will likely have to file the rider change to the bond.

Health Spa Bonds And Getting Your Texas Business License/Registration

Getting your health club or health business registered is not a lengthy process. It mainly consists of these steps:

• Complete the Application for Registration
• Have proof of your business being legally created with the Secretary of State
• Outline the ownership of the business with any individual who owns 10% ore more of the controlling interest
• Supply any history of past ligation in respect to health club/spa ownership
• Purchase your surety bond if it's required for your facility
• Include same contracts that will be used
• Pay all registration fees of $100