Minnesota Health Club Bond |
AmeriPro Surety Bonds | 844-589-9732
Health Clubs – Minnesota
The Attorney General Office of Minnesota is the regulatory body of health, dating, and buying clubs in the state.
By statute, such businesses must be licensed and registered, pay a $250 registration fee, and renew the registration fee at a price of $150 by each September 1st.
A condition of licensing is that you also obtain the required surety bond and file it with the AG’s Office. Our agency provides you with the surety bond in the amount required by law.
Health Club Bond: Amount Required; Qualifying
According to Minnesota law, the amount of the Minnesota health club bond shall be equal to:
- The amount of outstanding liabilities, as defined in Subd. 10. This is defined as the amount of prepayment that you have received from club members, minus the amount of prorated over the duration of the contract;
- But with an amount that will not exceed, regardless of the number of facilities you own and operate, $200,000. 325G.27, Subd. 2, (b).
Qualifying is by means of standard surety bond application, and a credit check.
For larger bond amounts, you may be asked to provide your own financial statement, the form of which we can provide to you if necessary.
For facilities under construction and which have not yet opened:
For health club facilities which have not yet opened and are under construction, the minimum surety bond amount required is $25,000. This amount is required until the dollar value of your obligations to future customers exceeds this amount. At that time, the bond must be adjusted.
Typically, the estimated annual premium for this bond is between 1%-2%. You may also wish to keep in mind that Minnesota may require you to adjust the amount of surety required according to the value of your registrations.
The Purpose of your Surety Bond Requirement
Required of your health club facility, the purpose of the surety bond is for the protection of your customers. This surety bond protects your customers who may lose any amount of prepaid membership due to the bankruptcy or closing of a health, dating, or buying club facility.
AmeriPro Surety Bonds is a surety bonds only agency. We provide license permit, probate, and fiduciary surety bonds throughout Minnesota.
Also, we provide surety bonds nationwide.
Please call our agency today at:
Or, you may fill out the form below and an agent will contact you…