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Introduction
A cosmetology school in Minnesota is a state-licensed educational institution approved by the Minnesota Board of Cosmetologist Examiners that provides training in hair, skin, and nail care. These schools prepare students to meet the state’s licensing requirements, including completing a number of hours of instruction and passing state board exams to become licensed cosmetologists.
Explanation: Minnesota Cosmetology School Bond
The Minnesota Cosmetology School Bond is a type of surety bond mandated by the Minnesota Board of Cosmetologist Examiners for all licensed cosmetology schools performing within the state. This bond serves as a financial guarantee that the school will conform to the state laws and regulations, ensuring honest business practices and the fulfillment of contractual obligations to students.
Purpose of the Bond
The primary objectives of the Minnesota Cosmetology School Bond are:
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Consumer Protection: Ensures that students receive the training services pledged and provides a means of financial alternative if the school fails to deliver.
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Regulatory Compliance: Guarantees that the school complies with Minnesota Statutes and Administrative Rules governing cosmetology education.
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Financial Accountability: Discourages fraudulent practices and promotes integrity within the cosmetology education industry.
Read a Bloomington, MN – Erosion Control Performance Bond.
Bond Amount Requirements
The required bond amount is determined by the school’s gross income from student tuition, fees, and other required institutional charges in the preceding year:
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Minimum Bond Amount: $10,000
Types of Cosmetology School Bond in Minnesota
The bonding requirements apply evenly across different business structures—individual (sole proprietorship), partnership, and corporation or LLC—with distinctions primarily in the application process and documentation.
1. Individual (Sole Proprietorship) Cosmetology School Bond
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Applicant: An individual operating the school independently.
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Bond Requirement: A continuous corporate surety bond of $10,000, conditioned upon the faithful performance of all contracts and agreements with students.
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2. Partnership Cosmetology School Bond
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Applicant: Two or more individuals operating the school jointly.
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Bond Requirement: A continuous corporate surety bond of $10,000, similar to that required for sole proprietorships.
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3. Corporation or LLC Cosmetology School Bond
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Applicant: A legally recognized corporate entity or limited liability company.
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Bond Requirement: A continuous corporate surety bond of $10,000, consistent with other business structures.
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Have a Minnesota – Ownership and Security Interest (Lost Title) Bond.
Step-by-Step Guide to Obtaining a Cosmetology School Bond
To secure the bond:
- Select a Surety Provider: Choose a licensed surety company experienced in Minnesota’s bonding requirements.
- Apply for the Bond: Submit an application detailing your school’s information and financial background.
- Pay the Premium: Premiums are typically a percentage of the bond amount, influenced by creditworthiness and other factors.
- Submit to the Board: File the original signed bond with the Minnesota Board of Cosmetologist Examiners as part of your licensing application or renewal.
Conclusion
The Minnesota Cosmetology School Bond is a critical component in the licensing process, safeguarding students and ensuring that cosmetology schools operate with integrity and in compliance with state regulations.
See a Minnesota – Professional Fund-Raiser Bond.
Frequently Asked Questions (FAQs)
What happens if the bond is canceled or lapses?
If the bond is canceled or allowed to lapse, the school may face license suspension or revocation. The surety must provide a 60-day written cancellation notice to the Board.
Can students file a claim against the bond?
Yes. If a school fails to fulfill its obligations—such as not providing instruction or failing to refund prepaid tuition—students may be eligible to file a claim against the bond for financial compensation.
Can I get a Cosmetology School Bond with bad credit?
Yes, but it may be more expensive. Surety providers evaluate creditworthiness, and those with lower credit scores may pay a higher bond premium (typically 3%–10% of the bond amount).
Can the bond be transferred to a new owner or school name?
No. A bond is issued to a specific business entity. If your school changes ownership or legal structure, a new bond must be issued under the updated entity name.
Is a separate bond required for each school location?
Yes. If your organization operates multiple licensed school locations, each location may need a separate bond, depending on how the licenses are structured and how tuition is handled.
Is the bond refundable?
No. The bond premium is a non-refundable fee paid to the surety for coverage. It is not returned even if your school closes or no claims are filed.