Wisconsin Fitness Center Bond Guide
New fitness centers in Wisconsin need to file a surety bond before opening. Learn how the bonding process works and get a free quote with this guide.
Bond Overview
- Purpose: To protect prepaid membership funds if a gym does not fulfill its contracts
- Who Needs It: All fitness centers opening in Wisconsin
- Regulating Body: The Department of Agriculture, Trade and Consumer Protection
- Required Amount: $25,000
- Premium Rates: Start at $250, vary based on credit score
How much does a fitness center bond cost in Wisconsin?
In lieu of requiring that fitness centers in Wisconsin register with the state before opening, the Wisconsin Department of Agriculture, Trade and Consumer Protection mandates that all fitness centers must file a $25,000 surety bond. Surety providers use a basic underwriting process that includes a credit review to determine pricing. Qualified applicants can expect surety bond costs starting at 1% of the total bond amount—or just $250 per year.
Interested in running a fitness center in Wisconsin? Apply for your bond today to get a free quote!
Why do I need this bond?
Wisconsin fitness center bonds are required as protection for the consumers to guarantee that they will receive reimbursement in the event that the facility fails to issue a refund of prepaid money due to the principal’s failure to provide the facilities and services guarantees to the consumer upon the initial signing of their contract.
If the consumer does not receive their refund, they may notify the department in order to make a claim. Once the department has received notification, they will then notify the surety within three years of the principal’s failure to uphold the contract or three years of the bond’s cancellation, whichever happens first. If the surety pays out any money to settle the claim, then it becomes the responsibility of the principal to repay the surety, guaranteeing that the surety shall not suffer a loss.
Take the first step toward opening a fitness center by purchasing the bond you need.
What’s the fine print?
These bonds are continuous and must be renewed annually to comply with regulations established by the department. However, the surety may opt to cancel Wisconsin fitness center bonds at any point during the term by notifying the department in writing at least 30 days in advance of the proposed cancellation date.
