Who needs a health, buying, or social referral club bond?
In the State of Minnesota, these clubs are required to obtain a surety bond to be in compliance with Section 325G.23 of the Minnesota Statutes. Health, buying, or social referral clubs under construction must maintain a surety bond, irrevocable letter of credit or cash deposit in an amount not less than $25,000. After the club is opened, the amount of the surety must be increased to take into account increases in the outstanding liabilities to the members. Clubs that do not require prepayments in excess of $50 may be exempt from this requirement, but must still register as above.
What is the health, buying, or social referral club bond?
The physical exercise club bond protects the party requesting the surety bond, the Obligee, against any financial losses as a result of poor financial choices, damages, unethical decisions, or a failure to adhere to state and local laws on the part of you, the Principal. By obtaining your bond, you are telling the Obligee that you can be trusted and that you stand by your business decisions.
"Health club" means any corporation, partnership, unincorporated association, or other business enterprise having the primary purpose of offering one or more facilities for instruction, training, encouragement, or assistance in physical fitness, in return for the payment of a fee entitling the member to the use of the facilities. The term does not include any nonprofit organizations, any private club owned and operated by its members, or any facility operated by the state or any of its political subdivisions.
"Social referral club" means any corporation, partnership, unincorporated association or other business enterprise organized for profit with the primary purpose of matching members of the opposite sex, by the use of computer or any other means, to facilitate dating or general social contact.
"Buying club" means any corporation, partnership, unincorporated association or other business enterprise organized for profit with the primary purpose of providing benefits to members from the cooperative purchase of services or merchandise.
The Minnesota health, buying, or social referral club bonds are also known as: Minnesota health studio bond, Minnesota health club bond, Minnesota health spa club bond, fitness bond, fitness club bond, and health club bond.
What else do I need besides the bond?
Health club owners will submit the original signed bond form to the Attorney General, Office of the Minnesota at the following address:
Office of the Minnesota
1400 Bremer Tower
445 Minnesota Street
St. Paul, MN 55101
They may be reached by phone at (651) 296-3353.
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Only Ashton Agency can provide you with:
Many companies offer these club bonds, but by contacting the Ashton Agency, you can be sure you'll be getting the best price available, not to mention our stellar customer service and insider knowledge of the industry. We've been helping people get bonded for more than 45 years. Let us put that experience to work for you today!
Call us now at (800) 452-2663 for a free quote and we will contact you within 24 hours. We can assist you over the phone to ensure you receive your bond quickly and easily!
Don't have time to speak on the phone? Please fill out our easy online application and fax to (503) 253-1353. We can get you started right away!