California Health Studio License Surety Bond
Any individual or business that is operating in the State of California as a Health Studio, Health Club, Yoga Center, Fitness Studio, Gym or any other fitness related center that accepts membership contracts, must post and maintain a Health Studio License Surety Bond in an amount set by the California Secretary of State for the purpose of licensure. The bond is a financial guarantee required of a Health Club that charges fees up front from its members. In the event the club closes unexpectedly and the members no longer have access to the services paid for, the bond provides a financial guarantee to recoup some of the lost funds from their prepaid membership.
Health studio operators must adhere to the rules and regulations for health studios as outlined in Title 2.5, Part 4 of Division 3 of the Civil Code of California. Among other provisions, health studios are strictly prohibited from:
- Acquiring contracts worth more than $4,400
- Procuring contracts for longer than three years
- Requiring payments past the terms of the contract
- Offering contracts where the font type is smaller than the 14-point type
- Offering contracts where the cancellation clause is not clearly evident
If the health studio operator conducted business in any unlawful or unethical manner, individuals or groups of individuals who are harmed by these actions are entitled to make a claim against the Health Studio surety bond.
Complete our online application and get a free quote for your California Health Studio Bond