WHO MUST REGISTER AS A BONDED BUSINESS?
Your business must provide the Consumer Protection Division with a bond letter of credit or cash deposit if it: 1. Collects or accepts more than three (3) months of payment in advance of providing services from any member; or 2. Collects or charges an initiation fee or any other up-front fee more than $200 to any member; or, 3. Has not yet opened a facility, but collects any money in advance for services to be provided at a planned facility or facility under construction (pre-sales). The annual registration fee for this type of health club is $1200.00. What amount is adequate for bond or other security? 1) Existing business: An existing club must post a bond with the Division that is adequate to cover all “outstanding liabilities” to its members. The “outstanding liabilities” of a business is difference between the amount of money each consumer has paid for services and the value of services the club has actually provided to the consumer. For consumers who pay on a monthly basis, outst
