Florida Health Studio Bond

Florida Health Studio Bond

An owner of a health studio or gym must meet certain requirements before the Florida Department of Agriculture and Consumer Services (FDACS) approves the registration, such as obtaining a $25,000 Health Studio Bond. This bond is held for the benefit of gym members who don’t receive a refund of prepaid dues from long-term contracts should the health studio go out of business.

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Buying the Health Studio Bond with Jet Insurance Company shows the FDACS that there is financial security available to protect gym members from losses in agreement with Section 501.016 of the Florida Statutes.

What Is the Lowest Price for the Health Studio Bond?

You can purchase a Health Studio Bond for as low as $25 a month or $250 for one year with Jet. Rates can vary since a credit check is required before approval. See the chart below for quotes that a preferred-credit applicant would be approved for different payment options. 

Bond TermCost
Monthly$25
1 Year$250
2 Years$438
3 Years$625
FL Health Studio Bond Rates

Jet provides payment options that allow you to pay the way you want: on a payment plan with small monthly payments or paying for multiple years at once. 

Health Studio Bond Limit Specifications

The standard bond limit for the Health Studio Bond is $25,000, but the FDACS may allow the limit to be lowered. If a health studio has less than $5,000 in current outstanding contracts, the limit can be reduced to an amount not lower than $10,000. Call (855) 296-2663 to speak to someone in our office and get your premium rate lowered for the lower bond limit. 

To maintain the reduced bond limit, the health studio will need to submit an annually updated report of gym members; if the report isn’t filed, the FDACS will raise the bond limit back to $25,000. If the aggregate dollar amount in current outstanding contracts jumps back over $5,000 at any time, the gym will need to notify the FDACS and Jet.

Who Needs to File a Health Studio Bond?

This surety bond requirement needs to be held by those who are registered as a health studio with the FDACS according to Section 501.016, Florida Statutes. Basically, any gym that collects fees more than 30 days in advance and uses a third party to collect such fees will need to hold a bond for a 5-year period. The bond requirement can be released if the following conditions are met within the most recent 5-year period: 

There are a handful of other qualifications that would allow gyms or businesses to reach exempt status from the surety bond requirement in agreement with Sections 501.016 and 501.013 (please reference the statutes for full information).

Health Bond Exemptions 

  1. Personal trainers
  2. Gyms that sells contracts for future health studio services and collects direct monthly payments for such services
  3. Health studios offering one-time contracts of 30 days or less (meaning no obligation for renewing or extending contracts)
  4. Legitimate non-profit organizations that have been granted tax-exempt status by the IRS
  5. Gymnastics schools where exercise is solely based in instruction and training
  6. Tennis, golf, or racquetball clubs that only offer sports play; any use of physical exercise equipment would void this exemption
  7. Dance, martial arts, or aerobic exercise studios or programs that only offer the corresponding activity; any use of physical exercise equipment would void this exemption
  8. A country club which promotes a social life and recreational amenities, where a physical exercise program is simply an accompanying factor of such amenities
  9. An organization that provides a program or facility to be used only by employees and their family members

Do Health Studios Need to Hold Multiple Surety Bonds?

Yes, if the health studio is required to hold a surety bond and has multiple business locations. A separate $25,000 Health Studio Bond must be filed for each location. 

The Health Studio Bond Process With Jet

Applying for the Health Studio Bond is easy with Jet’s simple application. Just add in the required information as you go along, including a social security number that is used for the credit check. When your application is complete, it will be submitted for review. 

A Jet team member will reach out to you for your client contract and business financial information. Once the review is complete of that information, you will receive an email containing the quote for your bond and a link to purchase. After your payment is received, Jet will prepare the bond form and send you a digital copy, along with a receipt, to keep for your records. 

Once you receive your physical copy of the Health Studio Bond, you will need to submit it along with your Health Studio Registration Application at this address: 

FDACS
Health Studio Program
2005 Apalachee Pkwy
Tallahassee, FL 32399-6500

How to Renew My Bond

Find out how easy it is to renew your Health Studio Bond with Jet.

How to Cancel My Bond

See the details on how to cancel your Health Studio Bond if you need to.

Bond Claim Process

See what constitutes a claim and what happens when a claim is filed against a Health Studio Bond.

Other Important Gym Contract Provisions

A health studio contract must contain the following aspects according to the FDACS: 

Full contract specifications are described in Section 501.017 of the Florida Statutes or a quick guide can be found in the Health Studio Contract Requirements Checklist. 

Florida Health Studio Bond Form

Notary Bond Application:

X

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

X

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

X

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: