Thinking of opening your health club in Texas? First you’ll need to furnish a Texas Health Spa Bond.
What is Texas Health Spa Bond?
A Texas Health Spa Bond is a type of surety bond which states that health spas will follow all rules and regulations stated in the Texas Health Spa Act. This bond is a not a protection for Texas health spas, but rather protection for their customers.
The main purpose of this bond is to protect health spa members from financial loss should the health spa close down.
If you are a member of a health spa that closed down and you had time remaining on a prepaid membership contract, you may file a claim against that health spa’s bond and get compensated for the value of the balance of your contract.
Texas Health Spa Bond Amounts
The Texas Secretary of State sets the bond amount. The bond amount is based on the total amount paid for prepaid memberships and are as follows:
- $0 – $20,000 in prepaid memberships: $20,000 bond
- $20,001 – $25,000 in prepaid memberships: $25,000 bond
- $25,001 – $30,000 in prepaid memberships: $30,000 bond
- $30,001 – $35,000 in prepaid memberships: $35,000 bond
- $35,001 – $40,000 in prepaid memberships: $40,000 bond
- $40,001 – $45,000 in prepaid memberships: $45,000 bond
- Over $45,000 in prepaid memberships: $50,000 bond
How Much Will my Texas Health Spa Bond Cost?
Texas Health Spa Bonds are subject to underwriting, which means a surety bond underwriter will evaluate your risk to get bonded and determine what price you’ll pay for your bond. You will not need to pay the full bond amount to get bonded. For example, if you need a $20,000 bond, you will not need to pay $20,000.
Instead, you will just pay a small amount. The price you’ll pay depends directly on your bond amount and your personal credit history. Those with better credit will pay less for their bond, generally between 1-3% of the total bond amount.
Getting a bond can be expensive, but it doesn’t have to be. At Surety Solutions, our online Bond Cost Calculator lets you view quotes for your TX Health Spa Bond so you can compare prices before you buy. We have relationships with over 30 of the top insurance carriers in the country and get you bonded for rates on the lowest end of the spectrum.
More Information
- For more information on this bond, check out this general information page for the TX Health Spa Bond.
- Learn more about how to start a health spa in Texas with this list of frequently asked questions.
- To find out if a health spa has a valid Texas Health Spa Bond, you can run a health spa search.
Can I Get a Letter of Credit Instead of a Bond?
Health spas in Texas may satisfy the security requirement for licensure by either posting a surety bond or a letter of credit. While there are similarities between surety bonds and letters of credit, there are significant differences between them, and only one can save you money. To learn more about the difference between surety bonds and letters of credit, click here.
Related links:
How To Get A Surety Bond – The Process Explained
Surety Bond Vs Letter of Credit: Which Is Best For My Business?
