Florida Health Studio Bond: Who Needs the $25,000 Bond and How to Get It
If you sell gym memberships, class packs or training programs in Florida, the state may consider you a health studio. That means registering every location and posting $25,000 of security to protect members' prepaid fees. Here is who it applies to, who is exempt and how to get the bond.
Under Florida's Health Studio Act (Florida Statutes 501.012–501.019), a health studio is any business that sells instruction, training or assistance in a program of physical exercise, or the right to use exercise equipment or facilities. Unless exempt, each health studio must register every location with the Florida Department of Agriculture and Consumer Services, pay a $300 annual fee per location, and file $25,000 of security per location: a surety bond, an irrevocable letter of credit, or a guaranty backed by a certificate of deposit. Studios that sell only month-to-month contracts, a single non-renewable contract of 30 days or less, or that have operated compliantly under the same ownership for five years are exempt from the security.
Who counts as a health studio
The definition is broad. It covers businesses that sell:
- Instruction, training or assistance in a program of physical exercise, or
- The right to use exercise equipment or facilities for a program of physical exercise
That reaches gyms and fitness centers, and it can reach boutique studios, personal training studios, Pilates studios and yoga studios that sell prepaid memberships or packages.
Who is exempt from the Act
A business that qualifies files an affidavit with the department. The listed exemptions include:
- Bona fide nonprofit organizations with federal tax-exempt status
- Gymnastics schools that only provide instruction, with exercise incidental
- Golf, tennis or racquetball clubs where the sport is the only activity, but not if they offer exercise equipment
- Programs or facilities used solely for dance, aerobic exercise or martial arts that use no physical exercise equipment
- Country clubs where exercise is incidental to membership
- Programs offered by an employer exclusively for its employees and their families
Note what is not on the list: yoga and Pilates. A Pilates studio with reformers uses exercise equipment, so the dance and aerobics exemption does not fit it.
The $25,000 security requirement
| Rule | What it says |
|---|---|
| Amount | $25,000 for each separate business location |
| Forms | Surety bond, irrevocable letter of credit, or a guaranty secured by a certificate of deposit |
| Purpose | Protects members' prepaid fees if the studio closes or breaks its contracts |
| Reduction | The department may reduce it to as little as $10,000 if outstanding contracts total less than $5,000 |
| Registration fee | $300 per location, per year |
Exemptions from the security (but not from registration)
- Month-to-month contracts: one payment per month, with the number of payments equal to the number of months
- Single short contract: one contract of 30 days or less with no renewal option, as long as no other contract is offered
- Five-year track record: operated in compliance under the same ownership for the most recent five years, with no adjudications and a satisfactory complaint history
A studio that is exempt but closes all locations for 14 consecutive days, other than for a natural disaster, loses the exemption.
How to get the bond
- Confirm you are a health studio and that no exemption applies
- Apply for the bond with owner information and, for larger bonds or weaker credit, business financials
- Pay the bond premium: a percentage of the $25,000, set by the surety based on credit
- File the bond with your registration for each location and renew every year
We write health studio bonds alongside gym and studio insurance. See surety bonds in Florida and New York, and what a surety bond is.
The bond is not insurance. It protects your members' prepaid money, and if the surety pays a claim, you repay the surety. Liability, property and comp are still separate. See gym insurance in Florida.
New York has its own version with higher amounts; see gym insurance in New York.
Fastest way to a quote: email your current policy (dec page and endorsements), the insurance section of your lease, your class schedule and services, square footage, equipment value, payroll or 1099 instructor list and 5 years of loss runs to adolfo@nextguardinsurance.com. One complete submission moves faster than ten phone calls.
Please send your account to one broker. When several brokers submit the same account to the same markets, the account gets blocked and quotes slow down.
Get your health studio bond and insurance together
Tell us your locations and how you sell memberships. We confirm whether you need the bond, write it, and quote your insurance at the same time. Quote in 48 hours once your submission is complete.
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Short explainers on business, contractor and specialty insurance in Florida and New York, in English and Spanish.
Frequently Asked Questions
What is a health studio in Florida?
Under Florida's Health Studio Act, a health studio is any business that sells instruction, training or assistance in a program of physical exercise, or the right to use exercise equipment or facilities for a program of physical exercise.
How much is the Florida health studio bond?
The required security is $25,000 for each business location. It can be a surety bond, an irrevocable letter of credit or a guaranty secured by a certificate of deposit. The department may reduce it to as little as $10,000 if outstanding contracts total less than $5,000.
Who is exempt from the Florida health studio bond?
Studios that sell only month-to-month contracts with one payment per month, studios selling a single non-renewable contract of 30 days or less, and studios that have operated compliantly under the same ownership for the last five years are exempt from the security.
Do yoga and Pilates studios need the health studio bond?
They can. The Act's exemption for dance, aerobics and martial arts applies only when no exercise equipment is used, and yoga and Pilates are not named. Studios that sell prepaid packages or memberships should check whether they must register and file the security.
How much does it cost to register a health studio in Florida?
Registration is $300 per location per year, paid to the Florida Department of Agriculture and Consumer Services. The bond premium is separate.
Is a health studio bond the same as insurance?
No. The bond protects members' prepaid fees if the studio fails to perform. If the surety pays a claim, the studio repays it. Liability, property and workers' comp insurance are separate.
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