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.
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.
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 Memberships||Bond Limit||Monthly Price||Annual Price|
*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.
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.
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.
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.
Texas Secretary of State
James Earl Rudder Office Building
1019 Brazos, 1st Floor
Austin, TX 78701
Texas Secretary of State
PO Box 13193
Austin, TX 78711
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.
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.
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.
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.