ANYTIME FITNESS FRANCHISE DISCLOSURE DOCUMENT

insurance program and waive any claim against us for any liability costs or expenses arising out of any
uninsured claim, in full or in part, of any nature whatsoever.
B. Relationship; Your Indemnification. We and you are independent contractors. Neither
we nor you will make any agreements, representations, or warranties in the name of or on behalf of the
other or that our relationship is other than franchisor and franchisee. Neither we nor you will be obligated
by or have any liability under any agreements, representations or warranties made by the other nor will
we be obligated for any damages to any person or property directly or indirectly arising out of the
operation of your Anytime Fitness Center. You assume sole and complete responsibility for and will
defend at your own cost and indemnify, reimburse and hold harmless us, our affiliates and our respective
officers and directors from and against all loss, costs, expenses, obligations and damages and liabilities
(including defense costs) arising directly or indirectly out of the development or operation of your
Anytime Fitness Center, including, without limitation, claims relating to your employment practices,
twenty-four (24) hour unsupervised access, equipment selection, and floor plan. You will have the right
to defend any such claim against you. We, using our own counsel, by notice to you, may control any
matter in which we are named or directly affected, but this will not affect your liability to pay all
attorneys' fees we incur in defending ourselves, which obligation is part of your indemnification
obligation. The indemnities and assumptions of liabilities and obligations set forth in this Agreement will
continue in full force and effect subsequent to the expiration or termination of this Agreement.
C. Our Indemnification. We will indemnify you against and reimburse you for any
obligations or liability for damages payable to third parties and attributable to agreements, representations
or warranties made by us, or caused by our negligence or willful action (so long as such obligations or
liabilities are not asserted on the basis of theories such as agency, apparent agency or vicarious liability or
claim of negligent failure to compel your compliance with the provisions of this Agreement, the Manual
or any other agreement between you and us), and for costs reasonably incurred by you in the defense of
any such claim brought against you or in any action in which you are named as a party, provided that we
will have the right to participate in and, to the extent we deem necessary, to control any litigation or
proceeding which might result in liability of or expense to you subject to such indemnification.
12. FINANCIAL STATEMENTS AND AUDIT RIGHTS
A. Financial Statements. Within thirty (30) days following your fiscal year end, you will, at
your own expense, provide us with copies of your financial statements (reviewed by your accountant),
including an income statement for the fiscal year just ended and a balance sheet, cash flow statement, and
any other document accompanying your financial statements, as of the end of such fiscal year, which
financial statements will have been prepared in accordance with generally accepted accounting principles
applied on a consistent basis. We will also have the right to request other financial statements from you
during the year, and you will deliver those financial statements to us when, and in the form and manner,
we require.
B. Review Rights. You will make all of your financial books and records available to us
and our designated representatives at all reasonable times for review. Your financial books and records
for each fiscal and calendar year will be kept in a secure place and will be available for review by us for at
least five (5) years after the end thereof.
13. ASSIGNMENT OF FRANCHISE AGREEMENT
A. By Us. We may transfer or assign this Agreement or any or all ofthe rights, interests,
benefits or obligations arising under it without restriction. Upon any transfer or assignment of this
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