Texas Health Spa Act Security Exemptions

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.

Author Mike Young, Esq.

To get legal help from Attorney Mike Young, call 214-546-4247 or click here now to schedule a phone consultation.

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