Maryland Health Club Bond Overview
- Purpose: To protect prepaid membership fees if a club goes bankrupt or out of business
- Who Needs It: Gyms, weight loss centers, and self defense schools that collect prepaid fees
- Regulating Body: The Consumer Protection Division — Office of the Attorney General
- Bond Amount: $25,000–$200,000
- Minimum Price: $250 or 1%
What Is a Maryland Health Club Bond?
A Maryland health club bond protects members and the Consumer Protection Division from financial loss if a facility closes or files bankruptcy.
It can be used to reimburse prepaid membership fees or administrative expenses incurred by the Consumer Protection Division.
Who Needs a Health Club Bond?
All owners of Maryland health clubs and gyms, weight loss centers, and self defense schools must be bonded if they do any of the following:
- Accepts more than three months of payment from any member in advance of providing services (including annual fees)
- Charges any up-front fee of more than $200
- Has not yet opened a facility, but has collected money for services to be provided
This also includes personal and athletic trainers that also provide the training facility.
What Is the Coverage Requirement?
It depends on if you are a new or established business:
- Newly established health clubs and self defense centers in Maryland need a $50,000 bond.
- Existing gyms and clubs should have a bond that covers all liabilities and sales up to a $200,000 maximum.
Verify this amount with the Consumer Protection Division as needed.
How Much Do Health Club Bonds Cost?
Your rate will be 1–10% of the bond amount based on your personal credit report. With excellent credit, you could pay just $500 for $50,000 coverage. Apply for your free quote now.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does the Bond Work?
Health club and fitness center bonds create a legal contract between three parties.
| Bond Party | Description |
|---|---|
| 1) Principal | The health club owner(s) filing the bond |
| 2) Obligee | The Maryland Office of the Attorney General |
| 3) Surety | The issuing surety provider |
As the bonded principal, you are responsible for upholding your end of the contract.
If you go out of business and owe money to the state of members, the bond can cover any losses. But, you are indemnified to the surety — that means you must repay the surety in the end.
How Do I Get My Bond?
SuretyBonds.com is proud to offer the fastest and easiest bonding process for business owners. Just submit a quick online application form.
We deliver most quotes same-day when you apply before 2PM CST Mon–Fri. At checkout, you can select from 1–3 day shipping options.
How Do I File It?
If you’re a new business owner, submit your surety bond form along with your registration application to the Office of the Attorney General.
Can I Get Bonded With Bad Credit?
You can often still get a health club bond with poor personal credit. Credit score will result in a higher premium because these bonds are underwritten. Apply for your no-obligation quote today.
How Do I Renew My Bond?
Health club bonds in Maryland are continuous until canceled. That means you can continue renewing your bond every year rather than filing a new bond form.
We’ll send reminders before your bond expires. Just pay the invoice to keep it active for another term. The state requires 45-days notice for cancellations.
How to Open a Gym or Health Club in Maryland
As a new health club business owner, you must register with the Consumer Protection Division before operating.
You’ll need to submit the following materials to register as a bonded business:
- General registration application form
- Certification of good standing
- Description of health services offered
- Contact and business phone numbers and addresses
- List of all locations
- List of officers, directors and shareholders with contact information
- Statement of compliance with financial accountability requirements
- $1,200 registration fee payment
- Sample customer payment contract
You can register online or by mail.
