New York Health Club Bond

If you want to start a health club in the state of New York, you need to get licensed with the Division of Licensing Services. As a part of the qualification criteria, you need to present a security instrument, which can be a surety bond, an irrevocable letter of credit, or a certificate of deposit. Surety bonds are usually the easiest way to meet this requirement.

You need to present the health club bond via the official bond form. The bond guarantees your compliance with Article 30 of the state’s General Business Law. The bond amount you have to post depends on the length of the service contracts that you offer, as well as on the number of locations you want to operate.

We recently aided a newly established health club in New York as they applied for their Health Club Bond. Despite their expertise in the industry, they found the complexities of the bond intimidating and were worried about how it would affect their business. Acknowledging their dedication to promoting wellness, we offered tailored support throughout the bond application process. By simplifying the steps, we guided them through New York's regulations smoothly, ensuring a successful start and enhancing their reputation as a trusted health and fitness services provider.

The bond amount for New York health clubs that offer contracts shall be: 

• $50,000 if the health club sells contracts for services for a term not greater than 12 months;
• $75,000 for contracts exceeding 12 months and up to 24 months;
• $150,000 for contracts exceeding 24 months and up to 36 months.

For health clubs with three or more locations, or for multiple franchises of a common franchisor, the following amounts shall be added to the bond amount:

• For three to four locations an additional $50,000;
• For five to six locations an additional one $100,000;
• For seven to nine locations an additional $150,000;
• For 10 or more locations an additional $200,000.

The bond amount you need to post is different from your bond premium. The typical premiums for health clubs are between 1% and 3% of the bond amount for applicants with good finances. For a $50,000 bond, this means you will end up paying between $500 and $1,500.

Your surety bond cost is determined on the basis of a number of criteria. Your surety has to examine your personal credit score and business finances, as well as any assets and liquidity. This is how it can assess the level of risk involved with getting you bonded. Your bond price will be smaller if you can demonstrate a strong profile.

Can I Get a New York Health Club Surety Bond with Bad Credit?

Applicants with low credit scores, tax liens, bankruptcies, or civil judgements can still get the bond they need with us. Lance Surety Bonds operates its Bad Credit Surety Bonds program exactly with them in mind.

The typical rates that you can expect are in the range of 5% to 10%, as the bonding risk is higher. You can still count on us to offer you a top rate. We work with a number of A-rated, T-listed surety companies, so we can shop around for the best option that fits you.

Need more information about the way bonding works? Make sure to check out our How to Get Bonded page, which is an extensive resource on the topic.

If you have more questions or need help with your bond application, we’re here to help. Reach us at (877) 514-5146 and we will happily assist you.

Unlike insurance for your business, your health club bond protects your clients. It can provide them with a reimbursement via a bond claim in case your health club goes bankrupt or if you fail to abide by the rules set in Article 30 of the New York State General Business Law.

Harmed parties can seek a total reimbursement up to the penal sum of your bond. When a filed claim is proven, your surety may first cover the claim costs. However, you have to fully repay it afterwards. This means bond claims can be a serious financial threat for your business. The best course of action is to stay away from such situations