North Carolina Health Club & Prepaid Entertainment Service Bond

North Carolina Health Club & Prepaid Entertainment Service Bond

The State of North Carolina Department of Justice requires that all Health Clubs and Prepaid Entertainment Operations obtain a Prepaid Entertainment Bond. The bond amount required varies with a minimum amount of $10,000 and a maximum amount of $250,000 per location. The bond is monetary assurance for customers with prepaid memberships to receive a proper refund should service be cancelled due bankruptcy or close of business. 


By choosing Jet, you eliminate the hassle of going through middlemen and instead are able to purchase the prepaid entertainment bond directly in minutes online.  

How Much Does the Health Club Bond Cost?

With Jet, the cost of the Prepaid Entertainment and Health Club Bond starts at $100 a year. Shown below is an example of what prepaid entertainment facility owners may qualify for in the preferred tier of pricing for monthly and multi-year terms. Rates differ based on the personal credit of the prepaid entertainment facility owner.   

North Carolina Health Club & Prepaid Entertainment Bond Price 
Bond LIMIT Cost
Monthly $10
1 Year $100
2 Years $175
3 Years $250

Jet is the only company that offers a monthly payment option that can be cancelled at any time. Prepaid entertainment facility operators may also choose to prepay for longer bond terms which provide even more savings.

Why Is This Bond Required in North Carolina?

The mission of the State of North Carolina Department of Justice is to provide proper protection for the people of North Carolina. This includes the regulation of all prepaid entertainment facilities with the requirement of the prepaid entertainment bond to ensure that clients are given a refund when warranted.  

The state legislature requires prepaid entertainment operators to acquire the minimum amount of $10,000 and the maximum amount of $250,000 of a surety bond as part of their operating requirements should they take prepaid fees. This includes the following businesses:

The surety bond requirement does not extend to the following groups: nonprofit schools, colleges, or universities. 


Prepaid entertainment spaces are required to have a separate bond for each separate facility, which should be filed with the Attorney General. The State of North Carolina Department of Justice imposes rules and regulations relevant to prepaid entertainment operators, verifies appropriate bonding and can even file a bond claim on behalf of any damaged party. 

Can Jet File the Bond For Me?

Yes, Jet will file the prepaid entertainment bond directly to the North Carolina Department of Justice. Other carriers would take this as an opportunity to charge you additional fees. 

For new license applicants that may want to include the original bond form along with their application, Jet offers the ability to have the bond sent to your address.The prepaid entertainment bond should be sent to the address provided below:

9001 Mail Service Center 
Raleigh, NC 27545

Will I Get a Refund If I Cancel My Bond?

Other insurance carriers go as far as attaching minimum earned premiums to bonds limiting refund amounts. At Jet, we maximize the amount of the refund sending back all premium that has yet to be earned. This means you will receive any unused bond premium amounts for bonds that are purchased on an annual basis.    

For customers who pay bonds on a monthly basis, the cancellation of a bond is as simple as notifying Jet that you would like to stop withdrawal of payments. Clearly, with our pay as you go option, there would not be a refund needed. 

The prepaid entertainment bond has a 30-day clause in which the bond remains active after the state of North Carolina Department of Justice receives the cancellation notice from the surety company. Jet accounts for the active time period when calculating the return premium of a given bond. 

How Do Health Clubs and Prepaid Entertainment Operators Avoid Bond Claims?

Health Clubs and Prepaid Entertainment Operators must abide by regulations assigned by the state of North Carolina Department of Justice General Statutes Chapter 66 - Article 21. The prepaid entertainment owner needs to comply with the contract agreements made with their members. Should the prepaid entertainment facility or health club go out of business or file for bankruptcy, they must reimburse all prepaid fees.   

Any buyer directly affected by a prepaid entertainment operator's closing has the ability to bring action for recovery of damages. The State of North Carolina Department of Justice and the Attorney General may also investigate any disputes and has the ability to file a claim with the surety on behalf of the buyer. 

The Health Club or Prepaid Entertainment Operator, who refuses or is unable to provide compensation may face disciplinary actions, including a claim on the surety bond and jeopardizes the ability to operate as a health club.

What Happens If a Health Club Gets a Claim on the License Bond?

The typical surety agent or broker who sells bonds do not directly represent prepaid entertainment operators should there be a claim on the bond. Jet does! Unlike agents and brokers, Jet will provide defense to prepaid entertainment operators. 

In case of a claim, Jet would need any information regarding your client contract and receipt of  refunds to support the defense of the claim. 

In the event that the claim is found to be valid, Jet will provide a payment to the damaged party up to the $10,000 bond limit. The prepaid entertainment operator will still be held responsible for their actions and is expected to pay the surety, in this instance Jet, back in the amount that was paid.  

How Long Does the Application Process With Jet Take?

With Jet, the purchase of a bond takes a matter of minutes. Instead of waiting on agents or third party carriers, Jet provides bond services directly to you. 


The online application does require a soft credit check that only takes moments. After the purchase of the bond, you should receive a copy of the bond along with the receipt. 

How Do I Renew the Bond With Jet?

For Health Clubs and Prepaid Entertainment Operators who purchase the bond on an annual basis, Jet will notify you prior to the bond’s expiration date. Only with Jet, the renewal process of a bond is as simple as making a payment online or sending in a check. 

Those who purchase bonds through the monthly payment option do not have to think twice about the bond. The automatic monthly payments of the bond ensure that the bond remains active. As long as the payments are made, you are good to go! 


North Carolina Health Club & Prepaid Entertainment Service Bond Form