License & Permit
Health Club Bond
A license bond some states require of gyms and health studios that sell memberships paid in advance.
- Required by
- State consumer protection or agriculture agencies (in Florida, the Department of Agriculture and Consumer Services)
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond protects members who prepay for services if the club closes or breaks the state's health studio law. In Florida, the bond runs to the Department of Agriculture and Consumer Services for the benefit of anyone injured by a violation of ss. 501.012 to 501.019. A member files a claim with the state, and the surety pays what the department orders, up to the bond amount.
Who needs it
- Gyms and fitness centers selling prepaid or long-term memberships
- Health studios, spas, and martial arts or dance studios covered by state law
What the underwriter looks at
- Owner credit
- Number of locations
- Years in business
- Volume of prepaid memberships
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
How much is the bond in Florida?
Florida requires $25,000 for each business location. A letter of credit or a certificate of deposit can stand in for the bond. The department may lower it to as little as $10,000 if outstanding contracts total under $5,000.
Is every gym required to have one?
No. Florida exempts studios that only take monthly payments under the statute's terms, studios with a clean 5-year record under the same owner, and businesses that sell only a single contract of 30 days or less. Other states have their own rules.
Do I need a separate bond for each location?
In Florida, yes. The $25,000 applies to each separate business location.