Tennessee Health Club Bond Overview
- Purpose: To protect members if a health club doesn’t fulfill its contracts
- Who Needs It: Most fitness center owners Tennessee
- Regulating Body: The TN Department of Commerce and Insurance
- Bond Amount: $25,000
- Minimum Price: $250, credit-based
What Is a Tennessee Health Club Bond?
A Tennessee health club bond protects members if a gym closes or doesn’t provide the promised services.
If you’re opening a fitness facility, the TN Department of Commerce and Insurance (TDCI) requires you to provide one of the following forms of financial security:
- $25,000 surety bond
- CPA-audited financial statement proving at least $10 million in net worth
Note: If you’ve been under the same ownership for seven years, you’re exempt from this requirement.
How Much Do Health Club Bonds Cost?
Tennessee health club bond premiums are credit-based and start at $250. We’ll run a soft credit check and send you a free quote within one business day. Apply now!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Tennessee Health Club Bond Work?
When you buy a Tennessee health club bond, you enter into a three-party agreement.
| Bond Party | Description |
|---|---|
| Principal | You, the health club owner |
| Obligee | The Tennessee Department of Commerce and Insurance |
| Surety | The issuing surety provider |
This bond is your financial guarantee to the state that you’ll uphold all health club regulations. If you break the law, harmed parties can file claims against your bond. The surety will pay valid claims up to your full bond amount. However, you’re responsible for reimbursement.
How Do I Get a Health Club Bond?
Getting bonded is easy! Fill out our online quote request form, and we'll email your exact rate within one business day. After purchasing your bond, be sure to file it with the TDCI.
How Fast Can I Get My Bond?
We offer overnight, two-day and three-day FedEx shipping. Simply select your preferred method at checkout.
How Do I Renew My Health Club Bond?
Tennessee health club bonds expire annually. We’ll send you reminders leading up to your renewal date. Once you pay the attached invoice, we’ll automatically extend your bond for another year.
Note: You need to maintain an active bond for at least two years after closing your facility or moving states.
How Do I Update My Bond Information?
If you need to make any changes to your bond form, email [email protected]. We’ll issue a bond rider if possible.
How to Open a Gym in Tennessee
While Tennessee doesn’t have a statewide health club license, you may need the following to open a legal gym:
- $25,000 surety bond or approved financial statement
- Local city or county business license
- Sales tax certificate from the Department of Revenue
- Zoning approval
After opening your facility, be sure to keep your surety bond and business registrations up to date.
