Texas Health Spa Surety Bond
Gyms, fitness centers and other Texas health spas generally must register with the Texas Secretary of State. In addition, unless an exemption applies, each location must post security of $20,000 to $50,000. Fortunately, a health spa surety bond meets that requirement without tying up your cash.
$20K–$50K
Security per location
Form 3002
Secretary of State bond form
$100 / Year
State registration fee
Chapter 702
Texas Occupations Code
Who Is Considered a Health Spa?
Texas generally defines a health spa as a business that sells memberships providing instruction in, or use of, facilities for a physical exercise program. In other words, most gyms and fitness centers that sell memberships are covered.
Registration Is Generally Required
Generally, you may not operate a health spa or sell memberships without a health spa operator’s certificate of registration from the Secretary of State. Moreover, registration is required for each location, costs $100 and lasts one year.
Some Businesses Are Excluded
However, the law excludes certain nonprofits, member-owned private clubs, businesses offering only dance or aerobics instruction, certain rehabilitation activities and some activities regulated under another state license. If you’re unsure, verify with the Secretary of State.
What Does the Health Spa Bond Protect?
The security requirement protects members who prepaid for memberships and could lose money if a health spa closes. As a result, the bond gives those members a source of recovery under the Texas Health Spa Act.
A surety bond protects qualifying consumers under the Act and the bond terms. Consequently, if the surety pays a valid claim, the bonded business is generally responsible for repaying the surety.
How Much Health Spa Security Is Required?
Texas bases the required amount on the total paid for prepaid memberships at each health spa location.
| Total Paid for Prepaid Memberships | Required Security |
|---|---|
| $0 – $20,000 | $20,000 |
| $20,001 – $25,000 | $25,000 |
| $25,001 – $30,000 | $30,000 |
| $30,001 – $35,000 | $35,000 |
| $35,001 – $40,000 | $40,000 |
| $40,001 – $45,000 | $45,000 |
| Over $45,000 | $50,000 |
If you operate several health spas, the requirement is figured separately for each one. Therefore, use the amount the Secretary of State requires for each registered location.
Surety Bond or Certificate of Deposit?
| Feature | Health Spa Surety Bond | Certificate of Deposit |
|---|---|---|
| Secretary of State form | Form 3002 | Form 3004 (assignment to the Secretary of State) |
| What you pay up front | A premium, a fraction of the bond amount | The full $20,000 to $50,000 |
| Cash tied up | None beyond the premium | The entire security amount |
| Pricing | Set by surety underwriting | Your own funds, plus any bank terms |
Some Registered Health Spas May Qualify for an Exemption
Texas offers two security exemptions, both requested on Secretary of State Form 3006.
No Long-Term Commitments
- No membership terms longer than 31 days
- No notes or retail installment contracts
- No recurring debit or bank draft authorizations
- No fees other than monthly dues
- No prepayment for terms longer than 31 days
Established Business (Sworn Statement)
- Net book value of assets over $50,000 per location
- Same ownership or management for at least five years
- No qualifying closure or failure-to-open complaints
- Sworn statement refiled every three years
Don’t assume you’re exempt simply because memberships are month-to-month or the business is several years old. Instead, confirm with the Secretary of State and file the exemption paperwork.
Selling Memberships Before You Open?
Texas has separate rules for health spas that accept prepaid memberships before a location opens. Specifically, you must open an escrow account at an FDIC-insured institution and file the required documents with the Secretary of State.
Note, however, that this escrow requirement is separate from the health spa bond.
- Open the escrow account by the 14th day after the first prepayment
- Use an FDIC-insured financial institution
- File escrow documents on Form 3005
- Keep the account until the 30th day after the spa opens
How to Get a Texas Health Spa Bond
Determine the Bond Amount
First, use the table above to confirm the security required for each location.
Start the Application
Next, open our bond portal, select the Health Spa Bond and complete the application.
Review the Bond
Then, once issued, make sure the spa name and location match your registration.
File With the State
Finally, submit the bond with your health spa registration as the Secretary of State directs.
Texas Health Spa Bond FAQs
Does every Texas health spa need a surety bond?
Not necessarily. Unless an exemption applies, a registered health spa must provide security for each location. A surety bond is one option; alternatively, Texas allows an assigned certificate of deposit.
How much is a Texas health spa bond?
The required security ranges from $20,000 to $50,000, based on the amount paid for prepaid memberships at each location. For example, a location with $20,000 or less in prepaid memberships needs $20,000 in security.
Is the bond amount the same as the bond premium?
No. The bond amount is the guarantee the state requires. Instead, the premium is what the health spa pays for the bond, and the surety sets it.
Do I need a separate bond for each health spa location?
Yes. Texas requires security for each health spa location, so the amount is determined separately for each one.
What is Texas Health Spa Form 3002?
Form 3002 is the Secretary of State’s Health Spa Surety Bond form, used when you choose a surety bond to meet the security requirement.
How much does Texas health spa registration cost?
The Secretary of State charges $100 for an original or renewal registration. Each registration lasts one year.
Can I use a certificate of deposit instead of a bond?
Yes. You can assign a certificate of deposit to the Secretary of State on Form 3004. However, that ties up the full security amount, whereas a bond only costs a premium.
Can a health spa qualify for an exemption from the security requirement?
Yes. One exemption covers spas with no long-term commitments, such as no terms over 31 days and no recurring drafts. Another covers established spas with over $50,000 in assets per location and at least five years of the same ownership or management. Both use Form 3006.
What if I sell memberships before my health spa opens?
Separate escrow rules apply. Specifically, you must open an FDIC-insured escrow account by the 14th day after the first prepayment and keep it until the 30th day after opening.
Who regulates Texas health spa registrations?
The Texas Secretary of State administers health spa registrations and security filings under Chapter 702 of the Texas Occupations Code.
Official Resources & Coverage for Your Gym
Ultimately, the Secretary of State administers health spa registration and security filings. Therefore, verify your requirement directly with the state.
Texas Health Spa Information
Registration details from the Secretary of State.
Texas SOS Health Spas →Texas Health Spa FAQs
Official answers on security, exemptions and escrow.
Texas SOS Health Spa FAQs →General Liability
Protect your gym from member injury and property damage claims.
General Liability Insurance →License & Compliance Bonds
Other Texas license bonds, including TABC and CSO bonds.
License & Compliance Bonds →Ready to Apply for Your Health Spa Bond?
Confirm the required amount for each location, then open our bond portal to start your application.
Bond approval and premium are subject to surety underwriting. Registration, security and exemption requirements are set by the Texas Secretary of State.