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texas health spa act exemptions

Is Your Texas Gym Or Martial Arts Studio Exempt From The Health Spa Act

By Business Contracts, Business Lawyer

Texas Health Spa Act Exemptions For Gyms And Martial Arts StudiosAlthough the state’s spa law applies to most gyms and martial arts studios in the Lone Star State, there are a few Texas Health Spa Act exemptions. Your fitness center or dojo may be exempted from compliance if it:

  • Is approved as a tax exempt organization by the IRS;
  • Is a private club that’s owned and operated by its members;
  • Only teaches dance or aerobic exercise;
  • Is dedicated to providing physical rehab for injuries and disease;
  • The activity is authorized by license issued by the State of Texas;
  • The activity is sanctioned or conducted per the state’s Education Code; or
  • Your facility is a government hospital or clinic.

As a practical matter, few for-profit ventures qualify for one of these Texas Health Spa Act exemptions except dance studios, aerobics centers, and the like.

Fortunately, an experienced Texas business lawyer can help you comply with the state law, including registration, meeting security requirements, and having the right membership contracts in place.

Related Resource: Click here to learn more about how we can help you

 

Texas Health Spa Act Security Exemptions

By Business Contracts, Business Lawyer

texas health spa act security exemptionsMany gym owners in the Lone Star State have to post security with the Secretary of State because of the state’s Health Spa Act. It’s common to post a $20K to $50K surety bond to meet this security requirement. However, there are two Texas Health Spa Act security exemptions that could save you money.

1. Short-Term Contract & Small Payment Exemption

You may be eligible for this exemption if…

A. Your gym contracts are 31 days or less in length;
B. Members don’t sign a note or retail installment agreement;
C. Members don’t authorize you to repeatedly draw membership fees from their bank accounts;
D. You don’t require members to pay initiation fees; and
E. Members prepay for 31 days or less.

This exemption is rare because most Texas gym business models do not fit these criteria.

2. Financially Stable Gym Exemption

You may be eligible for this exemption if…

A. Your gym has $50,000 or more in assets;
B. Your gym has been in business for at least five years without changing ownership/management; and
C. A member hasn’t filed a complaint with the state government that alleges you closed a gym or failed to open a gym.

This exemption is common for Texas gyms that have been in business for five years or more.

Do You Qualify For Texas Health Spa Act Security Exemptions?

If you need help obtaining a security exemption or other compliance with the Texas Health Spa Act, set up a phone consultation with Texas Business Lawyer Mike Young.

Related Resource: Click here to learn more about how we can help you and your Texas gym