Massachusetts Health Club Bond |
AmeriPro Surety Bonds | 844-589-9732
Health Clubs – Massachusetts
The surety bond requirement for health clubs operating in the Commonwealth is administered by the Secretary of the Commonwealth.
Evidence of a surety bond is required as a condition of licensing.
This surety bond is available from AmeriPro Surety Bonds as a new (first time) surety bond, or for those who need to renew an existing bond, both in the amount required by statute.
Massachusetts Health Club Bond: Amount Required and Premium
Section 79 of the state’s legislature provides the amount of surety bond required for health clubs in the Commonwealth.
The Massachusetts health club bond amount required is:
- $25,000 surety bond for each location of a health club facility that does not require contracts greater than 24 months in term;
- $100,000 surety bond for each location of a health club facility that requires contracts greater than 24 months, but no longer than 36 months (contracts cannot be longer than 36 months).
Candidates for the surety bond will pay a premium which will be determined by the following:
- The amount of surety bond required;
- Information provided on a surety bond application;
- The applicant’s credit score.
As a broad general rule, the amount of surety bond required will typically range from 1-4% of the bond’s amount. Applicants with exemplary credit and other criteria may pay as little as 1% annually.
Additionally, options may exist which permit a surety bond to be prepaid for several years. If such options are available, they offer a savings over paying for the health club surety bond annually.
Purpose of the Surety Bond
The purpose of the Massachusetts health club bond is for the protection of those who are contractually bound with a licensed health club.
The surety bond, up to no more than the bond’s aggregate amount, offers protections for a health club which:
- Ceases to operate;
- Fails to open at all;
- Does not honor a buyer’s right to cancel the contract (subsequent to obtaining a judgment in civil court regarding this right of cancellation).
In short, the bond is a financial guarantee that a health club will remain in compliance with all laws, amendments, and additions, governing a licensed health club facility.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit, contractor, court, and fiduciary surety bonds throughout the Commonwealth.
Our agency also provides surety bonds nationwide.
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