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News Briefs

By ALM Staff | Law Journal Newsletters |

Gold's Gym Franchise Closures in Dallas Lead to New Regulations

Texas legislators have tightened regulation of health spas in the wake of consumer complaints that they could not get refunds for long-term memberships they purchased from a Gold's Gym franchisee in the Dallas area that went out of business. HB 135, which came into effect on Sept. 1, increases the surety bond that a health spa operator must post from $20,000 to as much as $50,000, depending on the spa's membership base. The law requires the secretary of state to check each spa operator at least every 3 years to determine if the size of the bond is still sufficient. It also requires the state comptroller's office to confirm that the spa operator has a certificate of registration before issuing a sales tax permit. And it requires a posting of intent to move or close a spa location 30 days prior to the closure or move.

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