No. Arkansas does not require a health spa or health club to post a surety bond. Under the Arkansas Health Spa Consumer Protection Act (Arkansas Code Annotated 4-94-101 et seq., Act 204 of 1989), a spa or club that sells memberships must instead file an annual registration statement with the Arkansas Secretary of State (Form CFD-03) before it sells any membership contracts, and it must follow strict contract rules that protect people who prepay. Those rules cap financing at 25 months, limit how long the contract can run, and give members clear cancellation and refund rights if they move, become disabled, or the facility closes. There is no bond amount, no obligee, and no premium, because there is no bond.
| Question | Answer |
|---|---|
| Who requires a bond? | No one. Arkansas does not require a health spa or health club surety bond. |
| Governing law | Arkansas Health Spa Consumer Protection Act, Arkansas Code Annotated 4-94-101 et seq. (Act 204 of 1989) |
| Official form | Form CFD-03, Health Spa Consumer Protection Act Annual Registration Statement (a registration form, not a bond form) |
| Bond amount | None required |
| Premium basis | Not applicable (there is no bond) |
| Coverage term | Not applicable; registration renews annually, within 30 days of the filing anniversary date |
| Obligee | Not applicable; the registration statement is filed with the Arkansas Secretary of State, Business and Commercial Services |
Is a bond required, and how much is it?
There is no Arkansas health spa or health club bond to buy. The Health Spa Consumer Protection Act runs from Arkansas Code 4-94-101 through 4-94-109, and none of those sections create a surety bond, a bond amount, or a financial security deposit. Instead, the Act protects prepaid members through registration and contract limits.
| Item | What the law provides |
|---|---|
| Surety bond amount | None. The Act does not require a bond. |
| Minimum / maximum | Not applicable. There is no statutory minimum or maximum, because there is no bond. |
| How it scales | Not applicable. Nothing is tied to prepaid membership volume. |
| What protects prepaid members instead | Annual registration with the Secretary of State (4-94-106), a 25-month cap on financing and a 2-year cap on the contract term (4-94-107), performance deadlines (4-94-108), and cancellation and refund rights (4-94-109). |
If you have seen a company advertise an “Arkansas health spa bond” or “Arkansas health club bond,” it is likely applying a requirement from another state. Several other states (for example, Texas and Tennessee) do require a health spa bond tied to prepaid memberships. Arkansas does not.
What protects prepaid members instead of a bond?
Because there is no bond, the Act protects members who pay in advance through the rules the spa must follow in its contracts and its registration. The key protections are:
- Registration before any sale. Any person, firm, corporation, organization, club, or association that operates a health spa must file an annual registration statement with the Arkansas Secretary of State before it sells any health spa membership contracts (4-94-106).
- A cap on how long you can be financed. No contract may require payments or financing over a period longer than 25 months from the date the contract is entered into, and the term cannot be measured by the life of the buyer (4-94-107).
- A cap on the contract term. Facility availability under the contract cannot exceed 2 years, though it may be renewed for additional equal periods (4-94-107).
- Deadlines for the spa to actually open. At an existing facility, services must begin within 45 days of the contract date. For a planned or under-construction facility, the contract is voidable if the facility and services are not available within 180 days of the contract date (4-94-108).
- Cancellation and refund rights. A member may cancel within 3 business days of receiving the contract by written notice, and all money paid must be refunded within 30 days (4-94-109). After that window, a member (or the member’s estate) may still cancel on death, total and permanent physical disability, a move of more than 50 miles from the facility, or the facility’s permanent closure. The spa may keep only the reasonable value of goods and services already used and may ask for reasonable proof of the qualifying event.
- A written contract. Every health spa contract must be in writing, and the buyer must get a copy when the contract is signed (4-94-104). Contract provisions that waive these protections are void or voidable (4-94-105).
What does it cost?
There is no bond, so there is no bond premium to pay. The only state filing is the annual registration statement (Form CFD-03) with the Secretary of State, which the state lists with no filing fee.
[CLIENT FLAG: confirm All n One does not sell an Arkansas health spa or health club bond, since the statute requires none. If you offer any related product (for example, general liability for a gym, or a health spa bond in a state that does require one), tell us what to point buyers to here.]
What counts as a “health spa” under the Act, and who is exempt?
Under Arkansas Code 4-94-102, a “health spa” is broadly any person, firm, corporation, organization, club, or association engaged in selling memberships in a program of physical exercise, or that offers access to facilities such as saunas, whirlpools, weightlifting or exercise rooms, massage facilities, steam rooms, or exercise machines.
The Act does not apply to certain organizations, including:
- Nonprofit organizations such as the YMCA or YWCA, where health spa functions are only incidental to the organization’s main purpose
- Organizations whose primary purpose is teaching martial arts
- Nonprofit educational institutions
- Country clubs
- Weight-loss services that do not include exercise facilities and that last less than 25 months
[VERIFY against Arkansas Code 4-94-102 and 4-94-103: confirm the full current definition and the complete list of exemptions, since the exemption list is summarized here.]
How do I register my health spa in Arkansas?
- Confirm your business meets the definition of a “health spa” under Arkansas Code 4-94-102 and is not one of the exempt organizations.
- Complete Form CFD-03, the Health Spa Consumer Protection Act Annual Registration Statement, with the spa name and address, the officers, directors, and stockholders (and the same for any parent corporation), and the types of facilities you offer.
- File the registration statement with the Arkansas Secretary of State, Business and Commercial Services, before you sell any membership contracts. Submit it in duplicate as the form directs.
- Make sure your membership contracts meet the Act’s requirements: in writing, financing no longer than 25 months, a term no longer than 2 years, and the required cancellation and refund language.
- File your annual renewal within 30 days of the anniversary date of your registration to stay current.
You do not buy or file a bond as part of this process, because Arkansas does not require one for health spas or health clubs.
Frequently asked questions
Does Arkansas require a health club or health spa bond?
No. The Arkansas Health Spa Consumer Protection Act (Arkansas Code 4-94-101 et seq.) does not require a surety bond. It requires annual registration with the Secretary of State and sets rules that protect people who prepay for memberships.
Then why do some websites mention an “Arkansas health spa bond”?
Some sellers apply the requirements of other states to Arkansas by mistake. Several states do require a health spa bond tied to prepaid memberships, but Arkansas is not one of them. Arkansas uses registration and contract rules instead.
What do I have to file in Arkansas if I run a health spa?
An annual registration statement, Form CFD-03, filed with the Arkansas Secretary of State before you sell any memberships. It lists your spa, your officers and owners, and the facilities you offer.
Is there a fee to register?
The state lists the CFD-03 registration statement with no filing fee. [VERIFY against Arkansas Secretary of State fee schedule: confirm the current registration fee, if any.]
How does Arkansas protect members who pay in advance if there is no bond?
Through contract limits and cancellation rights: financing capped at 25 months, a contract term capped at 2 years, deadlines for the spa to open, and the right to cancel and get a refund on death, permanent disability, a move of more than 50 miles, or the facility’s closure.
Can a member get their money back if the gym closes?
Yes. If the facility permanently closes and services become unavailable, the member may cancel and is entitled to a refund of money paid, less the reasonable value of what they already used (Arkansas Code 4-94-109).
How long can a health spa membership contract run in Arkansas?
Financing cannot run longer than 25 months, and facility availability under the contract cannot exceed 2 years, although it can be renewed for additional equal periods (Arkansas Code 4-94-107).
Do I need any bond at all to open a gym in Arkansas?
Not under the Health Spa Consumer Protection Act. A local government or a specific business activity could carry its own separate requirement, so confirm with your city or county. [VERIFY against Arkansas Secretary of State and Arkansas Code: confirm no separate state or local health spa or health club bond requirement exists outside Chapter 94.]
