Tex. Occ. Code Section 702.304
Cancellation and Refund Notice


(a)

Except as provided by Subsection (b), a contract must state in at least 10-point type that is boldfaced, capitalized, underlined, or otherwise conspicuously distinguished from surrounding written material:

(1)

“NOTICE TO PURCHASER: DO NOT SIGN THIS CONTRACT UNTIL YOU READ IT OR IF IT CONTAINS BLANK SPACES.”

(2)

"IF YOU DECIDE YOU DO NOT WISH TO REMAIN A MEMBER OF THIS HEALTH SPA, YOU MAY CANCEL THIS CONTRACT BY MAILING TO THE HEALTH SPA BY MIDNIGHT OF THE THIRD BUSINESS DAY AFTER THE DAY YOU SIGN THIS CONTRACT A NOTICE STATING YOUR DESIRE TO CANCEL THIS CONTRACT. THE WRITTEN NOTICE MUST BE MAILED BY CERTIFIED MAIL TO THE FOLLOWING ADDRESS:

(3)

"IF THE HEALTH SPA GOES OUT OF BUSINESS AND DOES NOT PROVIDE FACILITIES WITHIN 10 MILES OF THE FACILITY IN WHICH YOU ARE ENROLLED OR IF THE HEALTH SPA MOVES MORE THAN 10 MILES FROM THE FACILITY IN WHICH YOU ARE ENROLLED, YOU MAY:

(A)

CANCEL THIS CONTRACT BY MAILING BY CERTIFIED MAIL A WRITTEN NOTICE STATING YOUR DESIRE TO CANCEL THIS CONTRACT, ACCOMPANIED BY PROOF OF PAYMENT ON THE CONTRACT TO THE HEALTH SPA AT THE FOLLOWING ADDRESS:

(B)

FILE A CLAIM FOR A REFUND OF YOUR UNUSED MEMBERSHIP FEES AGAINST THE BOND OR OTHER SECURITY POSTED BY THE HEALTH SPA WITH THE TEXAS SECRETARY OF STATE. TO MAKE A CLAIM AGAINST THE SECURITY PROVIDE A COPY OF YOUR CONTRACT TOGETHER WITH PROOF OF PAYMENTS MADE ON THE CONTRACT TO THE TEXAS SECRETARY OF STATE. THE REQUIRED CLAIM INFORMATION MUST BE RECEIVED BY THE SECRETARY OF STATE NOT LATER THAN THE 90TH DAY AFTER THE DATE NOTICE OF THE CLOSURE OR RELOCATION IS FIRST POSTED ON THE SECRETARY OF STATE’S INTERNET WEBSITE."

(4)

"IF YOU DIE OR BECOME TOTALLY AND PERMANENTLY DISABLED AFTER THE DATE THIS CONTRACT TAKES EFFECT, YOU OR YOUR ESTATE MAY CANCEL THIS CONTRACT AND RECEIVE A PARTIAL REFUND OF YOUR UNUSED MEMBERSHIP FEE BY MAILING A NOTICE TO THE HEALTH SPA STATING YOUR DESIRE TO CANCEL THIS CONTRACT. THE HEALTH SPA MAY REQUIRE PROOF OF DISABILITY OR DEATH. THE WRITTEN NOTICE MUST BE MAILED BY CERTIFIED MAIL TO THE FOLLOWING ADDRESS:

(Address of the health spa home office)

."

(b)

A health spa operator is required to include the statement under Subsection (a)(3)(B) in a contract only if the operator is required to post security with the secretary of state under Subchapter D.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Amended by:
Acts 2005, 79th Leg., Ch. 908 (H.B. 135), Sec. 6, eff. September 1, 2005.
Acts 2011, 82nd Leg., R.S., Ch. 1340 (S.B. 1231), Sec. 6, eff. September 1, 2011.

Source: Section 702.304 — Cancellation and Refund Notice, https://statutes.­capitol.­texas.­gov/Docs/OC/htm/OC.­702.­htm#702.­304 (accessed Jun. 5, 2024).

702.001
Short Title
702.002
Purpose and Construction
702.003
Definitions
702.051
Administrative and Rulemaking Authority
702.052
Rules Relating to Security Claims and Proceeds
702.053
Registration and Renewal Fees
702.101
Certificate of Registration Required
702.102
Application Requirements
702.103
Certificate of Registration Nontransferable
702.104
Term
702.105
Certificate Posting
702.106
Change of Information
702.107
Sales Tax Permit
702.151
Security Required
702.152
Surety Bond Requirements
702.153
Requirements for Security Other than Surety Bond
702.154
Beneficiary of Security
702.155
Duration of Security
702.156
Notice of Cancellation of Security
702.157
Limit on Liability of Surety or Obligor
702.158
Review of Security Amount
702.201
Application for Exemption
702.202
Qualifications for Exemption
702.205
Issuance of Exemption
702.206
Nontransferability of Exemption
702.207
Denial and Revocation of Exemption
702.251
Filing of Security Claim
702.252
Computation of Claim
702.253
Adjudication on Pro Rata Basis
702.254
Claim Barred
702.301
General Requirements
702.302
Disclosure Requirements
702.303
Contract Term
702.304
Cancellation and Refund Notice
702.305
Prepayment Refund Notice
702.306
Finance Charge Notice
702.307
Cancellation of Contract for Full Refund
702.308
Cancellation of Contract for Partial Refund
702.309
Proof of Payment
702.310
Effect of Contract on Third-party Rights
702.311
Void Contract
702.351
Membership Prepayment
702.352
Escrow Deposit Required
702.353
Exemption from Escrow Requirement
702.354
Duty of Financial Institution
702.355
Refund of Escrowed Prepayment
702.356
Withdrawal of Escrow Funds
702.401
Waiver Prohibited
702.402
Prohibited Acts
702.403
Application of Deceptive Trade Practices Act
702.404
Information Required in Advertisement
702.451
Disciplinary Actions
702.452
Notice Requirement Before Health Spa Closing
702.501
Filing of Suit
702.502
Statute of Limitations
702.503
Recovery
702.504
Temporary Closing
702.551
Investigative and Enforcement Authority
702.552
Suit for Enforcement
702.553
Amount of Civil Penalty
702.554
Violation of Injunction
702.555
Deposit in County Fund
702.556
Criminal Offense: Violation of Chapter
702.557
Criminal Offense: Interference with Investigation
702.558
Criminal Offense: Noncompliance with Subpoena or Investigative Demand

Accessed:
Jun. 5, 2024

§ 702.304’s source at texas​.gov