ANYTIME FITNESS FRANCHISE DISCLOSURE DOCUMENT

5. MONTHLY FEE
A. Monthly Fee. You will pay to us a monthly royalty payment (the "Monthly Fee"). The
Monthly Fee will initially be Four Hundred Nineteen Dollars ($419) per month (unless your Anytime
Fitness Center will be operated under the name, "Anytime Fitness Express," and is located in the same
territory we granted to you for an Anytime Fitness Center you are operating, in which case the Monthly
Fee will initially be Three Hundred Fifty-nine Dollars ($359) per month). On January 1 of each year,
beginning January 1,2010, we may increase the Monthly Fee to reflect inflation according to the changes
in the Consumer Price Index -- All Items 1982-84 =100 (the "Index") published by the Bureau of Labor
Statistics, U.S. Department of Labor, or its successors, or, in the event the Index is no longer published,
by any other comparable instrumentality we select tracking inflation in the United States. The increase
will be based on the increase in the Index for the most recent twelve (12) months ended November 30 of
each year, and such increase will take effect on January 1. Your obligation to pay us the Monthly Fee
under the terms of this Agreement will remain in full force and effect throughout the term of this
Agreement. The Monthly Fee is due on or before the first day of each month. If you open after the first
day of the month, the Monthly Fee is not due until the month that begins immediately after the month that
your Anytime Fitness Center opens. For example, if you sign this Agreement April 15, and your Anytime
Fitness Center opens June 15, the first time that you must pay the Monthly Fee is July 1. Your obligation
to pay the Monthly Fee continues through the term of this Agreement. You will also pay the full amount
of the Monthly Fee for the last month of the term of this Agreement, regardless the actual expiration or
termination date of this Agreement.
B. Method of Payment.
1. Notwithstanding any designation by you, we have the sole discretion to apply
any payments made by you to any of your indebtedness for Monthly Fees, advertising contributions,
purchases from us or our affiliates, interest, collection costs or any other indebtedness.
2. You hereby authorize your billing and payment processor to deduct from any
monies it collects on your behalf the amount of all fees you are obligated to pay us and to pay those fees
to us on the due date of such fee. We also have the right to require you to sign and deliver to us, our
bank(s) and your bank, as necessary, all forms and documents that we may request to permit us to debit
your account, either by check, via electronic funds transfer or other means or such alternative methods as
we may designate ("Payment Methods") for all fees and payments due to us. We may use the Payment
Methods to collect Monthly Fees, advertising fees and any other amounts due to us or our affiliates on the
date such amounts become due. You will notify us at least twenty (20) days before closing or changing
the account against which such debits are to be made. If such account is closed or ceases to be used, you
will immediately provide all documents and information necessary to permit us to debit the amounts due
from an alternative account. You acknowledge that these requirements are only a method to facilitate
prompt and timely payment of amounts due and will not affect any obligation or liability for amounts
owed.
C. Security Interest. You grant us a first priority security interest in your receivables and
equipment, whether now existing or hereinafter created, together with all proceeds of such assets. You
authorize us to file one or more financing statements to evidence this security interest. However, we will
subordinate our first priority interest to a lending institution that provides you financing for your Anytime
Fitness business.
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