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.
How much of a bond amount do I need for my Health Studio?
Bond requirements are determined by the term of the membership you will be offering.
- $50,000 bond required if you offer 12 month membership
- $100,000 bond required if you offer 12-24 month membership
- $150,000 bond required if you offer 36 month membership