Texas Health Spa Bond Overview
- Purpose: To protect pre-paid memberships from financial harm if the health spa closes
- Who Needs It: Registered health spa owners in Texas
- Regulating Body: The Texas Secretary of State — Registrations Unit
- Bond Amount: $20,000 to $50,000 based on pre-paid membership value
- Cost: $250 for up to $25,000 coverage, or starting at 1% for larger bonds
What Is a Texas Health Spa Bond?
The Texas Secretary of State (SOS) requires any registered health spa to have a surety bond as proof of financial security. Being bonded protects prepaid memberships from financial harm if a health spa closes.
Who Needs a Health Spa Bond?
According to the Texas Health Spa Act, health spa operators need either file a surety bond or a certificate of deposit (CD) as financial security. Any Texas business selling physical exercise programs and facility memberships is considered a health spa.
However, Texas does not classify the following businesses as health spas:
- A private club owned and operated by members
- Dance or aerobic class businesses
- Physical rehabilitation businesses
- Individuals in the health and fitness industry already licensed with the state, such as athletic trainers
- School physical education programs
- Tax exempt organizations under 26 U.S.C Section 501 et seq
Bond Coverage Requirements
Bond coverages for Texas health spa bonds range from $20,000 to $50,000 based on the annual prepaid membership value. View the chart below for an exact requirement breakdown.
| Prepaid Memberships | Bond Coverage |
|---|---|
| $0–$20,000 | $20,000 |
| $20,001–$25,000 | $25,000 |
| $25,001-$30,000 | $30,000 |
| $30,001–$35,000 | $35,000 |
| $35,001–$40,000 | $40,000 |
| $40,001–$45,000 | $45,000 |
| $45,001+ | $50,000 |
How Much Do Health Spa Bonds Cost in Texas?
$20,000 and $25,000 Texas health spa bonds cost a flat rate of $250 for all applicants. You can buy your bond online with no application or credit check.
Larger bond premiums are typically 1% of the premium amount. So, if you need a $30,000 bond you’ll likely pay $300. Be sure to verify the bond coverage you need before applying.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Texas Health Spa Bond Work?
By getting a health spa bond, you enter a three-party agreement.
| Bond Party | Description |
|---|---|
| 1. Principal | You, the health spa or membership gym owner |
| 2. Obligee | The Texas Secretary of State |
| 3. Surety | The issuing surety provider |
If the health spa closes or relocates for a period of time, prepaid memberships must be refunded. A claim will be filed and the surety will pay for affected parties. You must then reimburse the surety later on.
How Do I Get a Health Spa Bond in Texas?
Get your bond by completing these four simple steps:
- Verify your required bond coverage
- Apply for a quote
- Pay the premium
- File your bond with the SOS
How Fast Can I Get My Bond?
Texas health spa bonds are underwritten, so you’ll get a quote within one business day. After checkout, you can find your bond form in your email inbox in minutes!
How Do I File My Bond?
File your bond by mailing it with your completed license application to the following address:
Secretary of State
Registrations Unit
PO Box 13193
Austin, TX 78711-3193
Can I Get Bonded With Bad Credit?
We approve 99% of applicants, however, if you’re concerned about qualifying, read about our Bad Credit Options.
How Do I Renew My Health Spa Bond?
Texas health spa bonds expire annually. You’ll receive periodic email and text reminders to renew your bond starting 90 days before the expiration date.
Just follow the renewal instructions and pay the invoice!
Note: Your bond must remain active for two years after the health spa closes or until the SOS verifies all claims have been satisfied.
How Do I Update My Bond Information?
If you need to update any information on your bond form, contact our Customer Care department:
- [email protected]
- 1(800)308-43508
Usually, we can update basic information like name or address with a bond rider. However, larger updates may require a new bond form.
How to Register a Health Spa in Texas
To open a gym or health spa business in Texas, you need to register with the SOS. Submit the following materials to get your license:
- Completed application
- Sample contracts/membership agreements
- A surety bond or CD in the correct amount
- Escrow Account Form 3005*
- Payment for the $100 filing fee
*Note: Only establish an escrow account if your health spa accepts prepayment for memberships before the business opens.
Contact the SOS with any questions.
