Who needs a prepaid membership bond in North Carolina?

Issued by North Carolina Attorney General (Article 21 of Chapter 66, prepaid entertainment contracts), at step 4 of 6 in the opening sequence: get the permits for your kind of business.

2 of the 20 kinds of business in North Carolina

Applies to any club or studio that takes payment before the service, including monthly memberships. Contracts may not run past three years, must start within 180 days and carry a three-day cancellation right; the Attorney General can claim on the bond for members if the location closes. Pay-per-visit sales with no contract are outside the article.

Checked Oct 17, 2026 against the agency’s page.

Step 4 of 6: Get the permits for your kind of business

  1. Set up the business
  2. Register for tax
  3. Approve the space
  4. Get the permits for your kind of business
  5. Alcohol permits
  6. Before the first hire

Issued by North Carolina Attorney General (Article 21 of Chapter 66, prepaid entertainment contracts).

Sources and dates

G.S. 66-118 to 66-124; Attorney General health club bond form and instructions (March 2026). Checked against the agency’s page on the date shown; cities add their own fees.

Questions about opening here.