This article is written for Evolving Wellness by Chris Birk. Chris is a principal at SuretyBonds.com, a former newspaper and magazine writer, and college professor. You can learn more about Chris at the end of this article.
Gyms and health clubs across the country are packed this time of year, hit by the one-two punch of bad holiday eating habits and New Year’s resolutions.
But both long-time gym rats and first-timers can save themselves from potential headaches – not to mention a blow to the wallet - by ensuring their gym is properly licensed and bonded.
Every year, hundreds of gyms nationwide close their doors, often without warning or word to their customers. For consumers who have paid fees upfront, recovering their money can often prove a difficult if not impossible task when the gym didn’t have a surety bond.
More like a form of credit than insurance, surety bonds are essentially three-party agreements that provide consumers with a way to recover losses if they’re hurt financially by a business. Bonds are like a guarantee between the gym, the state and the company issuing the bond.
If the business folds, the bond ensures that consumers have a way to get their money back. Both the state and the bond company are there to make sure customers are made whole.
That’s a big deal for gym goers who wind up locked out of their favorite facility. Consumers who can’t rely on a bond have to file lawsuits and waste time and money working through the court system. Many just give up entirely and count the membership fees as a loss.
Gym closures have been on the rise in some parts of the country. In fact, the South Carolina Department of Consumer Affairs recently issued a consumer warning about health clubs after receiving hundreds of complaints in the past year.
Consumers are starting to ask more questions as the headlines and unpleasant stories pile up – and that’s a good thing.
Depending on where you live, if in the US, your state may actually require health clubs and gyms to have a bond on file with the state Attorney General’s office. It’s often part of the licensing process and a way to weed out businesses that may be less than legitimate.
When you decide it’s time to start a gym membership, do a little research and find out if the place you’re planning to join has met all the necessary licensing requirements. Also inquire about whether they’re bonded.
That simple question can provide a lot of peace of mind.
To learn more about a particular gym, check with the Better Business Bureau or your state’s Consumer Affairs/Consumer Protection agency. The National Association of Attorneys General also has an interactive map with contact information for each state’s Attorney General’s office.
*Main Photograph provided by Neeta Lind
About The Guest Author
Chris Birk, a principal at SuretyBonds.com, is a former newspaper and magazine writer and college professor. His work has appeared in more than two dozen newspapers and magazines, including the Chicago Sun-Times, the St. Louis Post-Dispatch and Insurance Journal. You can reach him at chris@suretybonds.com.
