The high costs of joining a health or fitness club can make the decision to purchase a membership difficult. Committing to a long-term membership is a lofty investment that usually requires upfront payment, and sometimes the experience can be lamentable. Unfortunately, some deceptive health and fitness clubs have been known to take advantage of their clients by collecting yearly membership fees only to shut down a short time later.
However, health and fitness clubs can protect their clients against potential financial loss by purchasing surety bonds that work as risk-mitigation tools. Fortunately, some states have established surety bond requirements to allow clients harmed by unruly health clubs to collect reparation.
Surety bonds act as a three-party agreement to guarantee that clients can receive compensation from either the club or the surety. Furthermore, they are legally-binding contracts that hold dishonest health and fitness clubs accountable for their decision to close after collecting membership fees.
New York surety bond requirements for health club bonds are representative of those established by most states. The bond’s minimum penal sum must be $50,000, however the amount increases if the business operates multiple clubs or sells memberships that last longer than a year.
You might need to do some research to determine whether a health club you might join is bonded appropriately. Various state-regulated entities can provide you with such information, including attorney generals’ offices, consumer protection agencies and better business bureaus. Doing just a little research could prevent a great deal of stress later on.
In the end, when investing in your physical health, make sure to protect your financial health by making sure the health or fitness club you join is fully licensed and bonded.
This is a guest post by Kevin Kaiser, an avid fitness lover looking to help other fitness friends.
