(Guest Post by Chris Birk) Tis the season to hit the treadmill. But consumers should be careful their New Year’s resolution to get in shape doesn’t wind up thinning their bank account.
Thousands of people are joining gyms nationwide this month. Consumers should choose their workout facility carefully — hundreds go out of business each year and customers who’ve paid membership fees upfront wind up losing out.
That’s why it’s important for consumers to make sure their gym is properly bonded and licensed. Surety bonds are three-party agreements that basically give consumers a way to recoup losses if they’re financially harmed by a business.
Many states require health and fitness clubs to post a bond with the state’s attorney general’s office. The bond is basically a guarantee, backed by an insurance firm or surety company. If the gym winds up going out of business, customers can file a claim against that surety bond and feel secure that the bond issuer and the state Attorney General will ensure pre-paid fees are refunded.
Gyms that purchase a surety bond offer consumers a degree of financial protection and peace of mind. Facilities without surety bonds may shutter their doors without notice and leave customers in the lurch. At that point, you’re talking about lawsuits and lawyer fees to get your money back.
Starting a gym membership is a great way to make good on those New Year’s resolutions. Before inking a contract, though, consumers should do some homework and make sure their prospective health and fitness club has the proper licensing and bonding.
Check with the Better Business Bureau or your state’s Consumer Protection or Attorney General’s office to learn more about a particular facility.
The National Association of Attorneys General has an interactive state map on their home page if you have trouble finding contact information.
Chris Birk is a principal at SuretyBonds.com and a former newspaper and magazine writer. You can reach him at chris@suretybonds.com.
img credit: Danny Key
