Texas Health Spa Bond

Texas Health Spa Bond

Owners of health clubs, gyms, weight rooms, and any other facility that provides memberships for a physical exercise program must be registered as a health spa with the Texas Secretary of State’s Registration Unit. To be approved for and to maintain a license, a custom Health Spa Surety Bond is required.

QUOTE

Jet Insurance Company provides the Health Spa Bond as a financial assurance to the Texas Secretary of State that the health spa owner will follow the regulations of their license and fulfill all customer contract obligations, or be held accountable for their actions. If the Secretary of State finds that the licensee has committed a violation, such as failing to reimburse a customer for unused membership fees due to the permanent closure or move of the health spa location, the surety bond will be used as a form of restitution by any damaged party.

How Is the Texas Health Spa Bond Limit Determined and How Much Does it Cost?

The custom Health Spa Bond limit is based on the total amount paid for prepaid memberships at each health spa location owned by the licensee. Take a look at Jet’s chart below to find the correct bond limit required for you.

At Jet, the cost of the Health Spa Bond is a small fraction of the custom limit and is based on a soft credit check of the health spa business owner. For example, if you are seeking up to a $20,000 bond amount, you could pay as little as $200 for a one-year bond term or $20 a month. For additional bond limits at preferred tier rates, view the price chart below. 

*Total Amount of Prepaid MembershipsBond LimitMonthly PriceAnnual Price
$0–$20,000$20,000$20$200
$20,001–$25,000$25,000$25$250
$25,001–$30,000$30,000$30$300
$30,001–$35,000$35,000$35$350
$35,001–$40,000$40,000$40$400
$40,001–$45,000$45,000$45$450
Over $45,000$50,000$50$500
Texas Health Spa Bond Limits and Costs

*Must include all health spa locations under the licensee

Jet is a direct surety company which means you won’t be expected to deal with middlemen agents and an elongated bond application process. Instead, you will work with a Jet underwriter firsthand to receive an approved rate and can purchase your bond quickly and efficiently, lifting a heavy weight off your shoulders.

Why Is the Texas Health Spa Bond Required?

The Texas Secretary of State requires gym and other fitness facility owners to obtain a Health Spa Bond to ensure that residents of Texas will be financially protected if the licensee fails to properly refund unused membership fees to the standards stated in their customer contracts. For example, if a health spa suddenly shuts down due to financial hardship, they are expected to reimburse all prepaid membership fees that were unused to the rightful customers. Failure to complete this obligation may result in a claim on the surety bond which will be used as restitution for each damaged customer of the health spa facility.

The Texas Secretary of State’s Registration Unit does allow exemptions to the licensing and surety bond requirement. However, the health spa would need to meet an extensive amount of qualifications. For further details, take a look at Title 3, Chapter 702, Subchapter E of the Texas Occupation Code. 

How to Apply for the Texas Health Spa License Bond With Jet

Jet’s application for the Health Spa Bond is simple! We only ask that you supply us with some general information such as your contact details, an indication of your required bond amount, and your social security number. Once submitted, a Jet underwriter will run a credit check to get you an approved rate. No need to worry though?this is just a soft check and won’t affect your current score. As soon as this step has been completed, you will receive rate options via email that are ready for immediate purchase. Simply select the best option for you and fulfill your payment. A copy of your receipt and bond form will then be sent to you instantly. 

How Is the Health Spa Bond Filed With the Texas Secretary of State’s Office?

The Jet team can file your surety bond for you at no additional cost! However, if you would prefer to take care of filing the bond yourself, the option to do so may be selected at checkout.

The original signed and sealed Health Spa Bond, along with your completed Health Spa Initial/Renewal License Application, can be submitted in person or by mail to the Texas Secretary of State Registration Unit at the addresses listed below.

Physical address:
Texas Secretary of State
James Earl Rudder Office Building
1019 Brazos, 1st Floor
Austin, TX 78701

Mailing address:
Texas Secretary of State
Registration Unit
PO Box 13193
Austin, TX 78711

What Happens if I Need to Cancel My Texas Health Spa Bond?

You can cancel your Health Spa Bond at any time! All we ask is that you send us a written cancellation request at [email protected]. Once received, the Jet team will send a termination notice to the Texas Secretary of State. The liability of the bond will then be released within 60 days of them receiving such notice.

It is important to note that the Texas Secretary of State Registration Unit requires the Health Spa Bond to remain active for two years following the closure of the health spa facility. If you cancel your surety bond with Jet before this time period has been met, you will need to acquire another bond until the two-year required liability period has officially ended. 

How to Renew the Texas Health Spa License Bond

Your business license and Health Spa Bond must be renewed each year with the Texas Secretary of State. No need to worry though, the Jet team has created a hassle-free bond renewal process!

Jet will send you a renewal invoice by mail and email well in advance of your bond term expiration date. All you need to do is confirm that the required bond limit is correct (we can adjust the limit if needed), and fulfill the standard payment due. Once completed, your bond will be all set with the Texas Secretary of State Registration Unit for another year. 

How Does a Health Spa Owner Avoid Texas Surety Bond Claims?

Health spa owners are expected to fulfill their customer contractual obligations, as well as follow the regulations of their license which can be found in Title 3, Chapter 702 of the Texas Occupation Code. Failure to comply may lead to a suspended or permanently revoked business license, large fines, and/or the filing of a bond claim by the Texas Secretary of State.

A claim on the Health Spa Bond will only occur if a licensed health spa fails to rightfully reimburse its customers for unused membership fees due to the permanent closure or move of the health spa facility. If this occurs, the damaged member may file an official complaint with the Texas Secretary of State’s office. In cases where the Secretary of State finds that the complaint is justified, they will file a bond claim on behalf of the health spa’s damaged members. The status of the claim is then posted to the Texas Secretary of State website and all applicable parties will have 90 days to claim their portion of the membership fees refund. 

What Happens if I Get a Texas Health Spa Bond Claim?

If you receive a claim notice from the Texas Secretary of State’s office, contact Jet as soon as possible! We will begin the claim process by asking that you supply us with all available information and documentation regarding the claim. These details will be used for our own review of the alleged breach of contract. 

Per the Texas Health Club Bond, Jet is legally obligated to complete payment of justified claims up to the bond’s limit. Claim payouts will never exceed the amount of the bond. You, the licensed health spa owner, are responsible for your actions and will be required to reimburse Jet Insurance Company for the claim payout(s) made on behalf of your transgression. Failure to complete this obligation will lead to future difficulties obtaining a surety bond within the State of Texas, which includes the state-mandated Health Spa Bond.

Texas Health Spa Bond Form Example

Texas Health Spa 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: