General Information - Health Club Services

The General Business Law requires that health clubs or spas, with a few exceptions, file a Certificate of Deposit, Letter of Credit or Bond with the Department of State.

No application is required and no license is issued.

The requirements are as follows:

  • If contract is for a term not greater than 12 months: $50,000

  • If contract if for a term more than 12 months and up to 24 months: $75,000

  • If contract is for a term more than 24 months and up to 36 months: $150,000

In addition, for clubs with three or more locations or for multiple franchises of a common franchiser, the following amounts are required in addition to the above amounts:

  • For three to four locations: an additional $50,000

  • For five to six locations: an additional $100,000

  • For seven to nine locations: an additional $150,000

  • For ten or more locations: an additional $200,000

Going out of business:

A health club or spa must be closed for at least six months before they can request a release of their Certificate of Deposit, Letter of Credit or Bond. After having been closed for that length of time, they must submit a written request for a release. Licensing will then check with the Attorney General's Office to determine whether any complaints against the company are on file. If no claims or complaints against the company are on file and we receive a favorable response from the Attorney General, the Certificate of Deposit, Letter of Credit or Bond will be released. Licensing will send a written confirmation to that effect.