Alabama's Health Studio Services Act (Ala. Code §8-23-3) requires a health studio that sells memberships for a planned or under-construction facility to post a $50,000 security bond. Ours is $1,500 flat — 3% of the bond amount — and the application is five minutes, no credit check.
















Consumer-protection bonds like this are simple. Here's the entire process:
Business details and an effective date. That's the application — no financials, no credit check section, no follow-up scavenger hunt.
Bonds like this are among the thousands of bond types that issue right after purchase. At most, 1–2 business days.
Your executed bond arrives by email, ready to hold and file as the Health Studio Services Act requires before and while you sign membership contracts. Wet-ink original mailed on request.
$50,000 security × 3% = $1,500, one-time per term. Fixed amount, fixed price, multi-year if you want it.
Alabama's Health Studio Services Act (Ala. Code §8-23-1 et seq.) requires a health studio that sells contracts for services to be rendered at a planned studio or one under construction to purchase a security bond of not less than $50,000, or file an equivalent irrevocable letter of credit. The point is to protect members who pay up front before a facility is fully open.
The bond is a consumer-protection guarantee. A buyer who suffers a loss by reason of the seller's breach of contract or bankruptcy may bring an action on the bond and recover against the surety. The surety's total liability can't exceed the aggregate amount of the bond, regardless of how many claims are filed.
It is not insurance for you — if the surety pays a buyer's claim, you repay the surety. Whatever your situation, we issue the $50,000 bond at a flat 3% with no credit check. If your facility doesn't fall under the preopening/planned-studio rule, send us your details and we'll confirm whether a bond is required.
These are the actual issuing fields — no credit check section, because this bond doesn't have one.
Start the application →If yours isn't here, the bond team can usually answer within the hour.
$1,500 flat, five-minute application, bond often issued in the same sitting. Free until issued.