Ohio Health Club / Prepaid Entertainment Bond

The bond protects consumers who pay in advance for health club memberships before the facility opens. If the facility fails to open by the represented date or within 180 days of signing the contract, consumers can file claims against the $10,000 bond to recover their prepaid fees. This is in addition to other protections under Ohio's Prepaid Entertainment Contracts Act, including a 3-day cancellation right and limits on pre-opening payments.

The bond is required only when you are selling prepaid health club memberships or contracts before your facility is fully constructed and open for business. If your facility is already operational when you start selling memberships, this bond is not required. The bond protects consumers who pay in advance and ensures the facility opens by the promised date or within 180 days of contract signing.

You must maintain the $10,000 bond from the time you begin selling prepaid contracts until 24 months after your facility is fully constructed and opens for service. Once your facility has been operational for 24 months, you may cancel the bond. This gives consumers adequate protection during the critical pre-opening and early operational period.