New studio on a sale

Definition

The rule that treats a change of ownership as a brand new business for bonding.

Why It Matters

Florida says a health studio is considered a NEW health studio each time it changes ownership, or each time stock ownership changes enough to put it under new management or control, and a new studio must file its own security. The seller's bond does not travel. Two exits from that exist and both are narrow: substantially the same stockholders forming a new entity, and a department opinion that control has not effectively changed, each of which also requires a satisfactory complaint history. Nothing in the regime screens an owner or a trainer, since the registration is consumer protection and not an occupational check, and the definition carves personal trainers out by name.