New York Health Club Bond
Overview
New York sizes its health club security to the length of the contracts a club sells. Under Article 30 of the General Business Law, as administered by the Department of State, a health club that sells contracts for services must file a bond, irrevocable letter of credit, or certificate of deposit with the Secretary of State: $50,000 if contracts run no more than twelve months, $75,000 if they run more than twelve and up to twenty-four months, and $150,000 for terms beyond twenty-four months, with additional amounts required for clubs operating three or more locations. The security protects members' prepaid money, and the Department of State controls when a filed security may be released.
Who Needs This Bond?
Gyms, fitness studios, martial arts schools, and other health clubs in New York that sell membership contracts for services fall under Article 30 of the General Business Law. The tier that applies depends on the longest contract term the club offers: clubs selling only month-to-month or annual deals sit in the $50,000 tier, while clubs selling multi-year memberships move up to $75,000 or $150,000. New clubs and clubs changing their contract offerings both need to confirm their tier before filing.
What is this Bond For?
The security exists so members are not left empty-handed if a club closes with prepaid contracts outstanding. The Department of State explains that if a club goes out of business, the filed certificate of deposit, letter of credit, or bond is not released until the club has been closed for at least six months and the Attorney General's office confirms no claims or complaints are on file. In short, it converts the club's promise to deliver services into a funded guarantee held for consumers.
When is it Required?
The security is filed with the Department of State at registration and maintained for as long as the club sells covered contracts. Clubs cannot simply let the security quietly lapse: the Department of State releases a filed security only after the club has been closed for at least six months, submits a written release request, and the Attorney General's office reports no outstanding complaints — a process built to keep continuous protection in place.
Where Does it Apply?
This is a New York State requirement under the General Business Law, filed with the Secretary of State. It applies to covered health clubs across the state — New York City, Long Island, upstate — because the obligation comes from state statute. Local jurisdictions may have separate business requirements, but the Article 30 security is a single statewide filing.
How to Buy Online
Use 'Buy This Bond Online' to open the secure surety portal in a new tab. Select the tier that matches your longest contract term, complete the application, and pay online. Your executed New York health club bond will be ready to file with the Secretary of State.
Why Bond Titan?
Bond Titan is powered by The Southern Agency, a licensed surety agency. The tiers and conditions described here are cited to the New York Department of State's official health club guidance in the Official Sources section, so you can confirm which tier your club belongs in straight from the administering agency — and then finish the whole purchase online.
Official Sources
The requirements described on this page are verified against the official sources below.
- Health clubs must file a certificate of deposit, letter of credit, or bond with the Department of State under General Business Law Article 30; tiers of $50,000 (contracts ≤12 months), $75,000 (12–24 months), and $150,000 (24–36 months), plus additional amounts for clubs with three or more locations; security released only after the club is closed at least six months, a written request is filed, and the Attorney General's office reports no complaints: New York Department of State — Health Club Services (verified July 16, 2026)