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ANYTIME FITNESS FRANCHISE DISCLOSURE DOCUMENT

ANYTIME FITNESS FRANCHISE DISCLOSURE DOCUMENT

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1. You acknowledge that the mandatory standards, specifications and policies we<br />

establish are not aimed at the day-to-day operation of your business, which will solely be within your<br />

control, but are merely intended to preserve the goodwill of the System and Marks.<br />

2. Notwithstanding any requirements in the standards, specifications and policies of<br />

the System that require your Anytime Fitness Center to be open twenty-four (24) hours per day, if any<br />

state or local laws require you to have a staff member on the premises at all times that persons are using<br />

your Anytime Fitness Center, we may, at our sole discretion, consent to you operating your Anytime<br />

Fitness Center less than 24 hours per day.<br />

3. Within ninety (90) days after you open your Anytime Fitness Center, we will<br />

send someone to visit your center. We will provide you a copy of the report at your request. If your<br />

Anytime Fitness Center does not receive a passing score from that visit, a new inspection will be<br />

conducted. This process will be repeated until you have received a passing score. You must reimburse us<br />

for any costs we incur in re-inspecting your Anytime Fitness Center after the first inspection. This fee<br />

will be payable in the manner we specify.<br />

I. Compliance with Laws. You will, at your expense, comply with all applicable local,<br />

state, federal and municipal laws, ordinances, rules and regulations pertaining to the operation of your<br />

Anytime Fitness Center, including, without limitation, any and all1icensing and bonding requirements,<br />

health and safety regulations and the Americans with Disabilities Act. You will, at your expense, consult<br />

an attorney to obtain advice with regard to compliance with all federal and state licensing laws and all<br />

other laws relating to the operation of your Anytime Fitness Center. Further, you will, at your expense,<br />

be exclusively responsible for determining the licenses and permits required by law for your Anytime<br />

Fitness Center, for filing, obtaining and qualifying for all such licenses and permits, and for maintaining<br />

all necessary licenses and permits throughout the term of this Agreement.<br />

J. Payment of Liabilities. You will timely pay all of your obligations and liabilities,<br />

including, without limitation, those due and payable to us and our affiliates, and to your suppliers, lessors<br />

and creditors.<br />

K. Taxes. You will promptly pay all federal, state and local taxes arising out of the<br />

operation of your Anytime Fitness Center. We will not be liable for these or any other taxes and you will<br />

indemnify us for any such taxes that may be assessed or levied against us which arise or result from your<br />

Anytime Fitness Center, including any taxes imposed by your state on any royalties or other amounts you<br />

are required to pay to us and our affiliates.<br />

L. Personnel. You will designate an individual to serve as the Principal Operator of your<br />

Anytime Fitness Center. The Principal Operator will devote hislher best efforts to the supervision and<br />

conduct of the development and operation of your Anytime Fitness Center and, as required in this<br />

Agreement, will agree to personally be bound by confidentiality and non-competition provisions of this<br />

Agreement. The Principal Operator, and anyone owning a controlling interest in your Anytime Fitness<br />

Center if other than the Principal Operator, will complete our initial training requirements and will<br />

complete all additional training as we may reasonably designate. You will be solely responsible for all<br />

wages, travel, and living expenses, and all other costs incurred by you and your employees in connection<br />

with any training or instruction that we provide. You will have a duly qualified and trained Principal<br />

Operator at all times during the term of the Agreement. If your state or local law requires you to have<br />

personnel certified in cardio pulmonary resuscitation or other health procedures, you must comply with<br />

these laws.<br />

FA 12/09 11

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