The State of Florida, Department of Agriculture and Consumer Services requires the Florida Health Studio Surety Bond.
The Florida Department of Agriculture and Consumer Services requires the Florida Health Studio Surety Bond to be in the amount of $50,000. By requiring health studios to provide a bond or other financial security, the Department can provide some financial protection to members of a health club that closes unexpectedly. The funds can then be used to compensate members who purchase long-term contracts. This bond is, essentially, a form of consumer protection.
You do not necessarily need a Florida Health Studio Surety Bond as a part of registering with the State of Florida. To determine if you need one, ask yourself the following questions: Do you collect fees beyond 30 days in advance? Do you charge a service fee (includes, but not limited to, registration, membership, processing, and startup fees) that is more than 10% of the total contract price? Does the consumer have to authorize a 3rd party to collect dues (EFT, etc.) on behalf of a health studio? If the answer to any of the above questions is yes, than you need to obtain a surety bond.