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ANYTIME FITNESS FRANCHISE DISCLOSURE DOCUMENT

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written consent, you may not use the Franchised Location for any purpose other than the operation of an<br />

Anytime Fitness center.<br />

C. Protected Territory. Included in the Rider is a map or description of an area surrounding<br />

the Franchised Location (the "Protected Territory"). Except as specified in this Section, during the term<br />

of this Agreement, we will not operate or license to anyone else the right to operate an Anytime Fitness<br />

center from any other location in the Protected Territory. You acknowledge and agree that (i) we and our<br />

affiliates have the right to grant other franchises or licenses and to operate company or affiliate owned<br />

Anytime Fitness centers at locations outside the Protected Territory even if they compete with your<br />

Anytime Fitness Center for members who may live and/or work in or near the Protected Territory, (ii) we<br />

and our affiliates have the right to operate, and to grant franchises or licenses to others to operate, fitness<br />

centers and any other business from locations within and outside the Protected Territory under trademarks<br />

other than the Marks, including, without limitation, health club membership promotion services, or health<br />

club billing services, without compensation to you; and (iii) the boundaries of your Protected Territory<br />

may overlap with a territory we grant to another franchisee or to an Anytime Fitness center we or our<br />

affiliates operate, so long as no other Anytime Fitness center is located within your Protected Territory.<br />

D. Additional Reservation of Rights. We and our affiliates reserve any and all rights not<br />

expressly granted to you under this Agreement, including, without limitation, the right to sell anywhere<br />

(including within the Protected Territory) products and services (including to your members) under the<br />

"Anytime Fitness" name, or under any other name, through any channel of distribution.<br />

2. TERM; RENEWAL RIGHTS<br />

A. Initial Term. The term of this Agreement is for five (5) years commencing on the<br />

Effective Date of this Agreement, unless terminated earlier as provided in this Agreement.<br />

B. Renewal. You have the right to renew your Anytime Fitness Center franchise for the<br />

Franchised Location for an additional five (5) year term, provided you meet all of the following<br />

conditions:<br />

1. you have given us written notice at least two hundred ten (210) days prior to the<br />

end of the then current term of this Agreement of your desire to renew;<br />

2. you and all entities you are a member, partner or shareholder of, are in<br />

compliance with all agreements between you and us and between you and our affiliates, and there has<br />

been no series of defaults by you thereunder (i.e., an abnormal frequency of defaults or a default that has<br />

occurred repeatedly, or a combination thereof), whether or not such defaults were cured;<br />

3. you make, or provide for in a manner satisfactory to us, such renovation and reequipping<br />

of your Anytime Fitness Center as we deem appropriate to reflect the then-current standards<br />

and image of the System, including, without limitation, renovation or replacement of signs, equipment,<br />

furnishings, fixtures and decor;<br />

4. you pay us a renewal fee at least thirty (30) days prior to the expiration of the<br />

initial term of this Agreement in an amount equal to Five Hundred Dollars ($500) (the "Renewal Fee");<br />

5. you sign the standard Franchise Agreement then being used by us, provided that<br />

you pay the Renewal Fee in lieu ofthe Initial Franchise Fee set forth in the then-current Franchise<br />

Agreement. The terms of such Franchise Agreement may differ from this Agreement, including higher<br />

FA 12/09 2

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