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Florida Health Studio Surety Bond
What is a Florida Health Studio Bond?
A Florida Health Studio Bond is a $25,000 surety bond that must be posted by health studios that collect fees more than 30 days in advance, or uses a third party to collect fees, or charges a service fee that is more than 10% of the total contract price.
A surety bond is required for each separate business location.
According to Florida Statutes, Section 501.0125, a health studio is defined as, “any person who is engaged in the sale of services for instruction, training, or assistance in a program of physical exercise or in the sale of services for the right or privilege to use equipment or facilities in furtherance of a program of physical exercise. The term does not include an individual acting as a personal trainer.”
Florida Health Studio Surety Bonds are individually underwritten so the cost can vary and is dependent on the personal credit report of the applicant as well as experience. Applicants with good credit scores (generally 680 or higher) that have experience in the industry pay as low as 1% of the bond amount. Of course, we will always provide you with the lowest rates available in the market. And can typically handle all credit types — from excellent to poor — as such those terms vary.
Florida Health Studio Surety Bonds can be issued at 1% of the total bond amount (so, $250 for a $25,000 bond) for applicants with good credit scores.
Florida Health Studio Surety Bonds are in place to protect any consumer that may be injured by the Principal (health studio) as a result of any violation of Florida Statutes, Sections 501.012-501.019. The bond ensures that health studios fulfill all contracted services and reimburses those individuals that did not receive the contracted services they paid for.
According to Florida Statutes 501.012, The Florida Legislature discovered that there exists a substantial number of contracts for health studio services where certain practices and business and financing methods have created undue financial hardship upon some of the citizens of Florida and that existing legal remedies are inadequate to correct existing problems in the industry.
The surety bond is required under Florida Statutes, Section 501.016. Health Studios in business in Florida are regulated through the Florida Department of Agriculture and Consumer Services (FDACS). Therefore, the Obligee on the bond is the State of Florida, Department of Agriculture and Consumer Services.
Florida Health Studio Bonds run from the effective date and continue in force until canceled. The bond may be canceled by the Surety by giving 30 days written notice to the Obligee (FDACS). The bond will be renewed and billed for on an annual basis. The bonding requirement can be waived if the business has been under the same ownership in Florida for a period of five years.
Contact The ProSure Group. As surety bond experts in business for over 23 years in Florida, The ProSure Group has issued numerous Health Studio Bonds and has partnerships with more than 30 different surety companies. This ensures that we get you the best, most competitive pricing and terms available in the marketplace. You just need to complete our simple application and one of our specialists will quickly contact you.
