Physical fitness centers in South Carolina are regulated by the state’s Department of Consumer Affairs. It is likely that as a prerequisite for licensing you will be required to obtain a surety bond or its financial equivalent.
If your physical fitness center offers prepaid or credit contracts which are:
Then you will be required to obtain a surety bond. Our agency offers you the surety bond in the amount required.
Section § 44-79-80 of the South Carolina statutes states that the Administrator will give you the amount of the surety bond required.
While no minimum surety is specified, the maximum amount is $50,000.
Qualification for the South Carolina physical fitness center bond is accomplished by the completion of a standard surety bond application (which you will need to sign), and a credit inquiry.
Once qualified, an applicant can expect to typically pay about 1% of the amount of surety bond required; however, the credit scoring will largely be a determining factor, and some applicants may be asked to pay more.
The physical fitness center bond is issued for a period of one year and thereafter the bond is renewed.
Applicants who are required to purchase the maximum amount of $50,000, may wish to prepay their surety for 2 or 3 years. Prepayment of the bond allows you to save over year to year renewal of the bond premium.
Our agency does not recommend this prepayment option for amounts less than $50,000 because the Administrator could require a higher surety amount the following calendar year.
With a $50,000 surety bond amount, prepayment would have the following premium amounts:
The surety bond requirement is for the benefit of your patrons and as a financial guarantee that all contractual obligations will be met.
More specifically, the bond is financial guarantee of your compliance with the S.C. Physical Fitness Service Act and any amendments or additions thereto.
AmeriPro Surety Bonds is a surety bonds only agency. We provide license and permit surety bonds throughout South Carolina.
Our agency also provides surety bonds nationwide.
Please contact us today at:
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