Need assistance? 
+1 815-826-6324 (815-8-BondAI) 
phil@AmericasSuretyBonds.com
Expert Surety Bonds Since 2004
Need assistance? +1 815-826-6324 (815-8-BondAI) phil@AmericasSuretyBonds.com
Expert Surety Bonds Since 2004
This $25,000 bond is written to whoever asked you for it, usually a party to your franchise or lease, and the wording on their form decides what it covers. Send us that form or their written requirement and the bond is issued to match it, so you are not paying for a bond the obligee turns away.
The Anytime Fitness Franchise Health Club bond in Alaska is a $25,000 surety bond guaranteeing that the club owner meets the obligations described in the bond form. Alaska does not have a health club licensing statute that sets this bond, so the obligee is the party that requires it, such as the franchisor or a landlord, and the exact form, term and filing steps should be confirmed with that party before the bond is issued.
We can help with all Alaska bonds!
The most common mistake with this bond is assuming the State of Alaska is the obligee. Alaska does not license health clubs under a health spa or prepaid membership statute of the kind some states use to bond gyms. The $25,000 requirement comes from the party that asked for it, which is most often the franchisor or the landlord on your club's lease. That party is the obligee, and its name and address need to appear on the bond exactly as it specifies.
A surety bond is a three party promise. Your franchise entity is the principal, the surety backs you, and the obligee can make a claim of up to $25,000 if you fail to meet the obligations written into the bond form. Depending on who requires it, those obligations may cover payments or performance owed under the franchise agreement or lease, or protection for members who prepaid dues. The form controls, so read it before you sign the indemnity agreement.
Alaska's Unfair Trade Practices and Consumer Protection Act, AS 45.50.471, declares unfair or deceptive acts or practices in trade or commerce unlawful. That covers how a club advertises and sells memberships. The Consumer Protection Unit in the Alaska Department of Law takes complaints and investigates patterns of unfair business practices.
Ask the obligee for its bond form or written bond wording, the exact obligee name and address, the effective date it wants, and whether it expects a new bond or a continuation certificate each year. The premium is set by underwriting, mainly the owners' personal credit, the franchise entity's finances and how long the location has operated.
The party that told you a bond is required, usually the franchisor or the landlord on your lease. Use the exact name and address that party gives you. A bond made out to the wrong obligee will not satisfy the requirement.
Alaska does not have a health club licensing statute that sets this bond, so the amount and form come from the party requiring it. Alaska's consumer protection law, AS 45.50.471, still applies to how memberships are advertised and sold.
Whatever the bond form says. The obligee can claim up to $25,000 if the club fails to meet the obligations written into the form. If the surety pays a claim, you repay the surety under the indemnity agreement.
Underwriters look at the owners' personal credit, the financial strength of the franchise entity and the club's operating history. Clean credit and a track record lower the rate.
The term, renewal and cancellation terms are written into the obligee's form or requirement. Confirm with the obligee whether it expects a new bond or a continuation certificate each year before the bond is issued.
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