ANYTIME FITNESS FRANCHISE DISCLOSURE DOCUMENT

(7) We require you have an automated external defibrillator. This equipment will generally cost between
$1,000 and $1,400. In some areas, you may be required to have additional first aid supplies, and our high
estimate covers the cost of these supplies.
(8) This amount includes lease security deposit, utility costs, permits, and licensing fees.
(9) Some franchisees, particularly people who sign Area Development Agreements to control an entire
market, will spend more than $6,000 per center for grand opening advertising because they believe they
will receive a return on that investment.
(10) You will need to purchase and maintain in effect at all times during the term of the Franchise
Agreement a policy or policies of insurance, naming us as an additional insured on the face of each
policy. You must have and maintain general liability insurance with complete operations coverage, broad
form contractual liability coverage, property damage all with current minimum limits of $1 ,000,000 per
person and $1,000,000 per occurrence, $3,000,000 in the aggregate, and other insurance in the types and
amounts as we may require or as required by law. The insurance policy must be written by a carrier who
has a minimum rating acceptable to us. Our insurance estimate assumes that you will personally operate
your Anytime Fitness center and have no employees. Therefore, the estimates do not include premiums
for worker's compensation insurance, employer's liability insurance or automobile liability insurance.
Your insurance costs may be substantially higher if you have to buy employer's liability insurance,
automobile liability insurance, or any other insurance required by your landlord. Before you make a
decision to purchase the franchise, you should confirm that insurance is available for a fitness center of
the type you intend to operate, given that you will not staffthe premises all ofthe time.
(11) This estimates your initial start up expenses during the initial 3 months. This amount does not
include the cost of obtaining a bond for your business. If you choose to sell prepaid memberships, under
some state laws, you must obtain a bond to secure your obligations to pre-paid members. Because the
requirements vary by state, and may depend on your net worth, we cannot estimate the amount you will
need to obtain a bond, or the assets you may need to collateralize that bond.
(12) These figures are estimates and we cannot guarantee that you will not have additional expenses
starting the business. We recommend that you have additional funds available to you to fund your
business. Your costs will depend on factors such as: how much the business is staffed, your sales and
management skills, experience and business acumen; local economic conditions; the local market for your
services; competition; the ability to obtain favorable real estate and equipment rates. These costs do not
include any payroll or owners draw amounts and assumes you will work full-time at your Anytime
Fitness center.
(13) These figures are estimates based on our experience in setting up Anytime Fitness centers in the last
2 years. Your actual expenses of establishing and operating this business could vary significantly from
these estimates. It is possible to significantly exceed costs in any of the areas above. Some states have
laws that require staffing or operational requirements that will significantly increase the amounts you will
have to spend to open and operate your Anytime Fitness center. If your state requires you to have
someone on the premises full-time or additional equipment on the premises, these costs may increase by
$5,000 or more a month. You should review these figures carefully with a business and a legal advisor
before making any decision to purchase the franchise. We do not offer financing for any part ofthe initial
investment. The availability and terms of financing will depend on factors like the availability of
financing generally, your credit worthiness, your relationship with local banks, your experience in the
fitness industry, and any additional collateral you may offer to a lender to secure the loan. Our estimates
do not include any finance charges, interest or debt service obligations.
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