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How much does a health club bond cost in New Hampshire?
A surety bond of $50,000 is required by the New Hampshire Department of Justice if one wishes to start a health and fitness club. These bonds are credit-based, meaning that the premium an applicant will pay is determined by a review of his or her credit and is subject to underwriting due to the risk involved in issuing the bond.
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Give us a call at 1 (800) 308-4358 or apply online to receive a free bond quote. Our team of experts makes the bonding process fast, easy and accurate.
Why do I need a New Hampshire health club bond?
The New Hampshire Department of Justice requires health clubs to file a bond in accordance with Trade and Commerce Chapter 358-I. Health clubs, gyms, spas, martial arts studios, and other fitness centers are required by state law to have a surety bond in place if they sell prepaid memberships in order to become licensed or renew an existing license. These bonds provide surety insurance protection to members who prepay or make advance club membership payments. In addition, the surety bond guarantees compliance with applicable laws, regulations, and licensing requirements.
If the health and fitness club violates any of these terms, a claim can be filed against the bond for club members to recoup any financial loss, up to the full bond amount. The club must then reimburse the surety for damages paid out.
When does my New Hampshire health and fitness club bond expire?
Health club bonds are continuous and must be renewed annually until there is a claim against the health club or it is canceled. A surety can cancel the bond with written notice to the Department of Justice 30 days before its effective date.
How to register a health and fitness club in New Hampshire
Prior to applying to register a health and fitness club in New Hampshire, the applicant must be 18 years or older. To apply, candidates must:
- Register the club with the New Hampshire Attorney General’s Office.
Applicants may fill out the health club application here. Completed applications can be filed at:
NH Department of Justice
33 Capitol Street
Concord, NH 03301
If the applicant chooses another remote form of submitting their license application, he or she can do so here:
Fax: (603) 271-2110
TDD Access: Relay NH 1-800-735-2964
Email: [email protected]
Registration includes the names and addresses of the owners, officers, stockholders, and parent organizations.
Provide a complete listing of the club’s employees and their qualifications. If your health and fitness club offers the services of a trainer who is not directly employed by you, but has access to your club members and/or uses your facility, that trainer must register with the Bureau.
Registered health and fitness clubs are required to have means for repaying customers for the unused portion of any prepaid membership contract if the club suddenly closes.
- Pay the $100 registration fee. Checks should be made payable to the State of New Hampshire.
- Provide documentation regarding the health club’s memberships.
Attach a sample copy of your membership contract/agreement. Be sure to enclose all statutory language. See RSA 358-I:2 (for Health Clubs) or 358-S:2 (for Martial Arts Schools). Ensure that there are no automatic renewal clauses in your health club contract. Automatic renewal clauses are illegal and will result in the rejection of your application.
Indicate the services and facilities available to members. This includes providing a comprehensive list of all membership plans offered for sale and the respective price of each plan, which must be made available to each prospective member. A copy of that list will be required to be attached to the statement. This statement must be signed by a legal representative of the business.
Indicate the type of business (sole proprietorship, corporation, LLC).
- Have documentation ready to disclose pending or completed litigation within the past three years.
- Obtain a $50,000 surety bond.
If your business requires a bond or other surety pursuant to RSA 358-I:2 (for Health Clubs) or 358-S:2 (for Martial Arts Schools), attach a copy of the bond with the statement.