Congratulations on being ready to start a health club in California! That’s a big step and the Jurisco team wishes you complete success. That’s why today we are talking about health club surety bond requirements in California, how you can lower your surety bond rate, and other tips for all your entrepreneurs out there.
As always, if you are ready to speak with a California health club surety bond expert send us a message now. We welcome any of your questions.
Now, let’s talk more about securing a health club surety bond in California.
A health club bond is a type of surety bond that falls under the license and permit bonds category. States use the health club bond to protect consumers. Variations of the health club surety bond are required in thirty states.
There are three parties involved when ensuring industry standards for California health club bonds including:
Health club surety bonds are not just reserved for the largest chains of 24/7 fitness centers. The state of California requires surety bonds for a wide range of health clubs regardless of size.
Types of California health clubs that are required to be bonded:
We all know either from personal experience or just from advertising that health clubs accept membership fees in advance — most of the time this is a requirement to join the gym. So what happens if the gym closes suddenly? How do members get their money back without having to personally hire a lawyer and fight in court? This is where a California health club bond comes into play.
A health club bond is a financial guarantee to help protect consumers. If a gym, fitness center, etc. closes down abruptly or ceases operations altogether, the bond is used to reimburse members for any prepaid fees for any services paid but not received. California extends this obligation to cover fraudulent or illegal activities committed by employees or owners of the health club.
California is not the only state to require gyms to use surety bonds. Other states mandating the use of the bond include South Carolina, Maryland, Tennessee, Florida, New York, and Texas.
Florida, Maryland, South Carolina, New York, Texas, and Tennessee.
Gyms that do not have the appropriate surety bonds could face serious consequences such as being forced to close, penalties, fines, and/or legal action brought by the state against the business. That not only costs a lot of money but does not help with publicity for the next business venture.
Because health club surety bonds are a guarantee of fees paid in advance this means the bond cannot be financed in most cases. However, there are still ways to save money on a California health club surety bond.
Be sure to work with a reputable California surety bond provider like Jurisco. Our lawyer-trained team knows everything you need to know about a California health club surety bond. This means finding ways to save you additional money.
Since Jurisco is a nationwide surety bond provider, we can provide the lowest California health club surety bond rates. Even if an applicant has bad credit, we can keep costs low. Typically the costs is 1% to 3% of the bond amount.
What impacts a health club surety bond rate:
Ready to see how much a health club surety bond will cost you? Contact Jurisco today and get a fast surety bond quote.