Oklahoma Health Spa Bond

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Who Is Required To Purchase an Oklahoma Health Club Bond?

There are two conditions where the Department of Consumer Credit requires a health club, gym, or studio to purchase a surety bond if:

• You accept an initiation fee or prepayment of over $50
• You pre-selling memberships or contracts in excess of 6 months

For example, many health clubs sell contracts that last six to twelve months but collect the payments on a monthly schedule. In this case since the contract is for greater than 6 months, you'll still need to purchase a bond for your facility.

 

Why is an Oklahoma Health Spa Bond Required?

Requirements like these are put in place to protect the public from clubs or facilities that may fraudulently:

• Sign people up for future services and not provide what they're contracted to do
• Take people's money up front for a service and fail to provide the service or change the conditions

The health club surety bond, is the primary tool used to hold you accountable to providing these services and keeping your contractual agreements.

The reason the surety bond is required is because there have been facilities who purposefully and financially harm their customer by:

• Stealing from customer deposits
• Charging for fraudulent deposits
• Mismanaging fees and prepaid fees for memberships
• Failing to deliver services or taking money after close a facility down

It's because of these fraudulent facilities that the Department of Consumer Credit requires new health clubs, gyms, and studios to purchase a surety bond if they meet the above two requirements.

In the event a health club is found guilty of failing to provide services or failing to refund dues for closing early or cancelling a membership contract, the customer can make a claim against the surety bond for financial compensation. Typically for the amount due to them.

However the total amount of compensation for an one or all claims against a health club are limited to the amount of the bond.

 

What Is The Oklahoma Health Club Bond Amount?

The bond amount is variable based on the number of unexpired contracts or membership that exceed 6 months and that are greater than $50 in value.

Here are the bond amounts based on these contracts or memberships:

 

Each Location Is Independent

It's important to understand that each location that accepts membership contracts is subject to these bond requirements even if they are part of the same business.

 

How Much Does an Oklahoma Health Club Bond Cost?

Most surety bonds are credit driven. This means the primary factors that will influence the price you'll pay are:

• Your specific bond amount
• The personal credit of the owner or owners
• Business industry and experience
• Prior bond history if an owner has been bonded in the past

A surety will use these factors to assess an applicant and determine a rate.

This rate multiplied by the bond amount is the price you'll pay.

A surety is the insurance company that underwrites health club surety bonds. And every surety is different in their assessment.

 

How We Can Save Your Hundreds Of Dollars

We are Surety Bonds Direct, a specialized surety agency and it's our job to find you the lowest possible price.

We work with the highest A rated sureties to price shop for you, find the lowest rate, and secure that rate for you.

It doesn't always make sense but sureties routinely come back with rates that are one to two, even three, percentage points different for the same applicant.

Let's look at example pricing so you can see how one to two percentage points affect the price you pay.

For example pricing, we'll use a bond amount of $50,000.

Purchasing your bond is a one time payment for a 12 month bond term. More on this below.

It's easy to see how getting a one to two percent lower rate can save you a lot of money.

This is money you can send on application fees or facility setup fees.

 

Get Your Personalized Pricing With No Obligation To Buy

Get your pricing today so you know exactly what you're looking at.

All you have to do is complete our online price quote request form and a bond specialist will help you save money.

The best part is you don't have to purchase from us. So get your pricing by completing the form or you can call a bond specialist at 1-800-608-9950.

 

How Long Does the Oklahoma Health Club Surety Bond Last?

Again, purchasing your health club surety bond is a one time payment for a 12 month bond term.

Purchasing your bond is easy. You just complete an online order form and during this process you'll choose a bond activation date.

This date will become your renewal date for future bond needs.

After you pay for your bond, our bond issuance team will prepare your bond:

• On the correct bond form
• With the required signatures
• All the required seals
• And the power of attorney

This process typically only takes 1 business day to complete.

The Department of Consumer Credit requires the original bond with your physical signature on it. This means we'll have to mail you a copy. Make sure you account for a few extra days.

 

Renewing Your Oklahoma Health Club Bond

During the renewal process, you'll get an email and call from your bond specialist with pricing ready to go.

If you need to add a new bond or adjust the value of your current bond, you can do so during this time.

It's also good to keep in mind that this bond applies to a single location. So if you open a new location and you accept pre-sales, you'll have to get that location bonded as well.

 

Health Spa Bonds And Getting Your Oklahoma Business License/Registration

Getting your health club or health business registered is not a lengthy process. It mainly consists of these steps:

• Complete the Application for Registration
• Have proof of your business being legally created with the Secretary of State
• Purchase your surety bond if it's required for your facility
• Pay all registration fees of $200 investigation fee and a $300 registration fee

You can find out more information about the process on the Department of Consumer Credit's website.