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Texas Health Spa Bond

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How much does a health club bond cost in Texas?

The Texas Secretary of State requires health clubs to post surety bonds as part of the registration process. The required bond amount is based on the total amount paid for prepaid memberships at the health spa location. A breakdown of the required bond amounts can be found in the table below.

Because these bonds are subject to underwriting consideration, the price you’ll pay depends directly on your required bond amount and a review of your personal credit report.

Bond Type
$20,000Health Spa BondPrepaid Memberships: $0 - $20,000
$25,000Health Spa BondPrepaid Memberships: $20,001 - $25,000
$30,000Health Spa BondPrepaid Memberships: $25,001 - $30,000
$35,000Health Spa BondPrepaid Memberships: $30,001 - $35,000
$40,000Health Spa BondPrepaid Memberships: $35,001 - $40,000
$45,000Health Spa BondPrepaid Memberships: $40,001 - $45,000
$50,000Health Spa BondPrepaid Memberships: $45,001+

Why do I need a Texas health spa bond?

By posting a Texas health spa bond, the principal (health spa) agrees to abide by all rules, laws, and regulations stated in Chapter 702 of the Texas Occupations Code, which is also referred to as the Health Spa Act. Specifically, these bonds protect a member of a health spa who suffers financial loss as a result of the closing of the health spa. In this case, financial loss refers to any unused or unearned portion of the member’s dues or fees.

What’s the fine print?

Health spa bonds in Texas remain continuous until canceled by the surety. The surety can cancel the bond by giving written notice of cancellation to the Secretary of State at least 60 days prior to the effective cancellation date.

These bonds must be maintained for two years after the date on which the health spa ceases to operate or until the Secretary of State determines that each claim made on the bond has been satisfied or foreclosed by law.

How to start a health club in Texas

A person must obtain a health spa operator’s certificate of registration from the Secretary of State before operating a health spa or offering for sale or selling a membership in a health spa. An operator’s certificate of registration is required for each health spa location. Unless the person qualifies for an exemption, a security deposit must be posted with the Secretary of State for each location.

Section 702.352 of the Occupations Code requires an escrow account to be established if a health spa accepts prepayment for memberships before the health spa opens. The escrow account must be established with a financial institution insured by the Federal Deposit Insurance Corporation no later than 14 days after the first prepayment is accepted. The following items must be filed with the Secretary of State by the same deadline:

  • a notarized statement identifying the financial institution holding the escrow account and the name in which the escrow account is held
  • a signed statement on a form approved by the Secretary of State authorizing the Secretary of State to direct inquiries to the financial institution regarding the escrow account

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