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California Dance Studio ($25,000) Bond
Those who want to run a dance studio in the state of California in order to teach dance classes are required to have a California Dance Studio Bond in order to do so, in addition to obtaining a business license from either the city or the county.
Contracts for dance studio services and classes are required to be drafted in accordance with the state requirements outlined in Sections 1812.50 – 1812.69 of the Civil Code. These standards must be followed. The code stipulates that dance studios are not permitted to engage in unethical business activities, such as false or misleading advertising, contracts that do not place an undue financial strain on the business with exorbitant costs, services that are not dishonest or deceitful, or any other unethical behavior.
According to another provision of the code, all contracts must be put in writing, and the client must be given a copy of the document at the moment it is signed.
A California Dance Studio Bond is necessary for any enterprises that are actively and presently offering dance instruction and training in their facilities. This requirement applies to both private and public establishments.
The customers of a dance school are protected from any malpractice or dishonesty committed by the dance studio because of the California Dance Studio Bond. This ensures that the dance studio will comply with all of the laws, rules, and regulations that have been established by the state. Customers are protected against the dancing studio’s potential for unethical business practices or illegal behavior by virtue of this relationship.
Due to the fact that the California Dance Studio Bond is of a continuous nature, it maintains its full force and effect for the whole of the period of the original bond. A notification must be sent to the obligee by the surety firm thirty days before the cancellation date in order for the obligee to allow the bond to be canceled.
Any customer who has submitted or deposited cash as payment for instruction is guaranteed to be financially protected by California Dance Studio Bonds in the event that the studio fails to comply with its agreements and professional code of conduct. This is a guarantee that is provided by dance studio surety bonds. This guarantees that the customers either get the services they paid for in accordance with the terms of the agreement or receive a full refund of the money they paid for those services if the agreement is broken.
Bond Amount
The Secretary of State of California mandates that the amount of the California Dance Studio Bond be either $25,000 or 25% of the dance studio’s gross revenue from its business during the studio’s most recent fiscal year, whichever is larger. This requirement applies to all dance studios in the state. In addition to that, the Secretary of State requires a filing fee of thirty dollars ($30).
The California Dance Studio Bond is performed in order to comply with the requirements of Title 2.4 (beginning with Section 1812.50), Part 4 of Division 3 of the Civil Code and of Chapter 2 (beginning with Section 995.010) of Title 14, Part 2 of the Code of Civil Procedure. Both of these sections may be found in the Civil Code.
Coverage
Instead of protecting you, your house, or your company as insurance does, the California Dance Studio Bond guards the interests of the obligee (the organization requesting the bond). If the principal (the dancing studio) does not provide the services as promised, the obligee may submit a claim with the surety business in order to get relief from the obligation.
In the event that the claim can be shown to be legitimate, the surety will settle the claim by paying out a maximum amount equal to the bond’s punitive sum. After that, you are obligated to pay back the surety for any and all money that was paid out, including any legal expenses that the surety expended in the process of defending the claim against you.
Do keep in mind that claims have the potential to be harmful to your company. In addition to the financial damage they do, they make it very difficult, if not impossible, to get a bond in the future.