Licensing

California Health Studio Bond (Gym Bond)

If your gym or studio sells memberships people pay for up front, California requires a bond that protects those members. Here is who needs the health studio bond, how the amount is set, and what it costs.

Health studio bond by the numbers

$50,000: Minimum California health studio bond for a studio's first year selling prepaid memberships; CA Civil Code §1812.80 et seq.
$100: Common minimum-earned premium a surety keeps on a mid-term cancellation; BondExchange
$8.6B: U.S. surety direct written premium; SFAA, 2022
100%: Qualifying single-year bond premium generally deductible as a business expense; IRS Pub. 535

Why California requires it

California's health studio law (Civil Code 1812.80 et seq.) protects members who pay in advance for a gym or studio contract. If a studio closes or fails to deliver, members can recover against the health studio bond. Because it protects the public and not the studio, it is a classic license and permit bond, filed with the Secretary of State.

How the amount is set

For a studio's first year of doing business in California, the bond is at least $50,000. After that, the amount scales with your gross income from the business, which you report to the state, so a larger operation posts a larger bond. You pay a premium on that amount, never the full sum.

What it costs, and getting placed

Health studio bonds are usually affordable. You pay an annual premium, a percentage of the bonded amount set by underwriting, and for a small business a qualifying single-year premium is generally a deductible business expense. Tell us whether you sell prepaid memberships and your gross income, and we will confirm the amount and quote it.

Questions

FAQs

Reviewed by Michael Melshenker, CEO. Updated June 2026.

Who needs a California health studio bond?

Gyms, fitness studios, and health clubs that sell prepaid memberships or contracts. California's health studio law protects members who pay in advance, so studios that take that money must post a bond and file it with the Secretary of State.

How much is the health studio bond?

For a studio's first year of business in California, the bond is at least $50,000. From there it scales with your gross income from the business, and can run higher. You pay a premium on that amount, not the full sum.

Do all gyms need one?

It applies to studios that sell prepaid memberships or contracts. If you take money in advance for future services, the law generally requires the bond. If you only charge as-you-go, you may not. Tell us your setup and we will confirm.

How much does it cost, and can I get it fast?

You pay a premium that is a percentage of the bonded amount, set by underwriting. These are usually affordable, and we place them quickly once we have your required amount.