California Health Studio Bonds
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What Is a California Health Studio Bond?
A California health studio bond holds health studios, spas and gyms financially liable for following the rules and regulations outlined in the California Health Studio Services Contract Law.
These provisions strictly prohibit health studios from the following activities:
- Enlisting contracts worth more than $4,400
- Enlisting contracts for more than 3 years
- Requiring payments past the contract term
- Failing to disclose the length of the contract in 14-pt type
- Failing to include a cancellation clause in the contract
Apply for the bond you need below.
How Much Do California Health Studio Bonds Cost?
The state-required California health studio bond amount will be calculated based on the volume of business you receive. Verify your required coverage amount with the Secretary of State’s office. Rates start as low as 1% of the total bond coverage, but surety underwriters will do a soft credit check to determine your personalized premium rate.
If you operate a California health club in Burbank or West Hollywood, the required $75,000 bond will typically cost $750–$7,500 based on credit score.
Palmdale, California health club permit bonds cost a flat rate of $5 per $1,000 of coverage with a $100 minimum. Apply now to get a free quote within one business day!
How Does a California Health Studio Bond Work?
A California health studio bond joins three parties in a legally-binding contract:
- Principal: The health studio or gym
- Obligee: The California Secretary of State or municipal agency requiring the bond
- Surety: The surety bond provider
The obligee requires the bond from the principal (health studio owner) and the surety backs the principal’s obligation. If the principal breaks their obligation, the bond acts as a line of credit to pay harmed clientele. However, the health studio must reimburse the surety for any paid claims.
Health studio surety bonds in California remain in effect for two years. The surety can cancel the bond after providing 30-day’s notice to the state.
Who Needs a Health Studio Bond?
The California Secretary of State requires all health studios to file a surety bond prior to offering the following services:
- Instruction or training for exercise, body building, figure development, weight loss or other similar skills
- Use of a health studio, gym or other facility for any of the above purposes
- Membership in any group formed to learn or develop the above skills
Some California cities also require health clubs to file local surety bonds to protect prepaid membership fees:
- City of Palmdale Health Club Permit Bond
- City of Burbank Health Spa Financial Guaranty Bond
- City of West Hollywood Health Spa Bond
How Do I Get a Health Studio Bond in California?
SuretyBonds.com provides the fastest and easiest way to get a California health studio bond. Just follow these four steps:
- Apply: Submit an online request form.
- Quote: Receive your free quote and invoice within one business day.
- Purchase: Checkout online and use DocuSign to complete any additional forms.
- File: Select your preferred shipping method to receive your official bond form. Then, mail it to the Secretary of State using the address on the form. Include a $30 filing fee for the state.
If you have any questions, email [email protected] and a friendly surety expert will be happy to assist you.
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