Virginia Health Club Bond Guide
In Virginia, most health clubs must file a minimum $10,000 surety bond to register with the state.
Bond Overview
- Purpose: To protect loss of prepaid membership fees if a health club closes
- Who Needs It: Most health clubs operating in Virginia
- Regulating Body: The Department of Agriculture and Consumer Services – Office of Charitable and Regulatory Programs
- Required Amount: $10,000–$100,000
- Premium Rates: Credit-based, starting at 1%
Keep scrolling to learn more about the bonding process.
What Is a Virginia Health Club Bond?
A Virginia health club bond is a type of license and permit bond required to register a fitness center in the state. It is a form of financial security that protects members from losing prepaid fees if the club unexpectedly closes.
How Much Bond Coverage Do I Need?
Under Virginia Code 59.1-306, your bond requirement depends on the number of active contracts your club maintains.
- <250: $10,000
- 251–500: $20,000
- 501–750: $30,000
- 751–1000: $40,000
- 1,001–1,250: $50,000
- 1,251–1,500: $60,000
- 1,501–1,750: $70,000
- 1,751–2,000: $80,000
- 2,001+: $100,000
Clubs with multiple locations, even if under the same ownership, must file a separate bond for each facility. The number of contracts an individual gym holds will determine its bond amount.
How Much Do Health Club Bonds Cost in Virginia?
Virginia health clubs bond prices start at just 1% of the total bond amount. For example, qualified applicants can pay as little as $100 for $10,000 coverage.
Your exact rate will depend on your bond amount and financial qualifications, primarily credit score. You may be eligible for a multi-year term discount to save up to 25%. Apply below to get your free quote.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Health Club Bond Work?
A Virginia health club bond is a legal contract between three parties:
- Principal: The health club purchasing the bond
- Obligee: The Office of Charitable and Regulatory Programs requiring the bond
- Surety: The provider issuing the bond
Under this contract, you, as the principal, promise to uphold all regulations under the Virginia Health Club Act. You also guarantee reimbursement of prepaid membership fees if the club closes.
If you break the bond terms, harmed parties can file claims on the bond. The surety will validate and pay claims up to the full bond amount, which you are responsible for refunding.
Who Needs a Health Club Bond?
In Virginia, a health club refers to any person or business selling memberships to use exercise machinery. The Office of Charitable and Regulatory Programs mandates a surety bond if your club charges initiation fees over $125 or accepts prepayments.
However, some types of fitness centers are excluded from this requirement:
- Nonprofits
- Private member-owned clubs
- Martial arts studios
- Government-owned facilities
- Schools and colleges
- Residential tennis and swimming clubs
- Employee-exclusive corporate gyms
Health clubs may also prove financial security by filing an irrevocable letter of credit. However, a surety bond is typically the most affordable and efficient option. Learn more about bonds versus letters of credit here.
How Do I Get a Health Club Bond in Virginia?
SuretyBonds.com provides the fastest and easiest way to get a health club bond. Follow these simple steps:
- Apply Online: Submit an online request form to get your free quote
- Pay Invoice: Complete your purchase online or over the phone
- Receive Bond: Select your FedEx shipping option to receive your original bond form
Upon receipt, sign and file the official bond documentation with the Office of Charitable and Regulatory Programs.
How Fast Can I Get My Bond?
If you’re in a rush, SuretyBonds.com offers overnight delivery. Purchase now to receive your official bond as soon as the next day.
Can I Get Bonded With Bad Credit?
Yes, you may still be able to get bonded with bad credit. However, poor credit may increase your premium rate.
Apply online to receive your free personalized quote or visit our Surety Bond Cost Guide to see how credit may impact your premium.
How Do I Renew My Health Club Bond?
Virginia health club bonds expire annually. When you work with SuretyBonds.com, we’ll send you reminders before your bond expires. All you need to do is pay your renewal invoice to maintain coverage.
The surety can cancel the bond at any time by providing 60-day’s written notice to the Department of Agriculture and Consumer Services.
How to Open a Health Club in Virginia
The Office of Charitable and Regulatory Programs oversees registration of health clubs in Virginia. To apply, submit the registration form and all supporting documentation. Each facility location must submit a separate form.
You’ll also need to pay an annual registration fee depending on your club’s number of active contracts:
- 250 or less: $200
- 251–500: $300
- 501–2000: $700
- 2001 or more: $800
Mail your application and bond form to the address below:
Virginia Department of Agriculture and Consumer Services
Office of Charitable and Regulatory Programs
PO Box 526
Richmond, VA 23218-0526
Registrations expire annually on July 1. To renew, submit the same form and pay the registration fee.
