In Texas, health spas�businesses that sell “memberships that provide the members instruction in or the use of facilities for a physical exercise program”�need to be registered with the state to legally operate. Their registration also includes a surety bond requirement.
Texas health spas are registered with the Secretary of State by the health spa operator. Each location must be registered separately and registrations expire annually. Initial and renewal health spa applications are submitted on the same form, and any changes to that information must be submitted to the Secretary of State within 30 days of the change. Applicants need to provide their contact information and if the business is a corporation, a type of partnership, LLC, or sole proprietorship, the contact information for controlling members or owners. Other information the application asks for includes:
- Litigation disclosure�If any complaints or litigation has been filed against any controlling member, officer, owner, etc. in the past two years regarding the closure or failure to open a health spa.
- Business’s trade name, address, phone number, and square footage of the spa
- Description of offered or proposed facilities and services
- Sample contract
- Surety bond
- $100 filing fee
The application must also be notarized. The required health spas surety bond needs to be between $20,000 and $50,000, depending on the total of prepaid memberships at the location:
- $0-$20,000 in prepaid memberships�$20,000 surety bond
- $20,001-$25,000 in prepaid memberships�$25,000 surety bond
- $25,001-$30,000 in prepaid memberships�$30,000 surety bond
- $30,001-$35,000 in prepaid memberships�$35,000 surety bond
- $35,001-$40,000 in prepaid memberships�$40,000 surety bond
- $40,001-$45,000 in prepaid memberships�$45,000 surety bond
- Over $45,000 in prepaid memberships�$50,000 surety bond
Health spas have the option of obtaining a certificate of deposit as security in place of a surety bond. Health spas can also apply for exemptions from the security requirement—read more about exemptions in the Secretary of State’s FAQs. The Secretary of State maintains a list of registered health spas where consumers can see if a health spa is registered and has posted a surety bond or other security.
Texas health spas are required to be bonded to protect consumers. Should the spa close and customers suffer financial loss�like being charged for membership after the spa or gym has closed�they can file a claim against the surety bond. If the claim is proven, they can receive compensation from the surety. Any claims paid out by the surety must be reimbursed by at-fault health spas.
Ready to get a Texas health spas surety bond? Get in touch with Single Source Insurance today!�