ANYTIME FITNESS FRANCHISE DISCLOSURE DOCUMENT

3. you or any of your owners make an unauthorized Transfer under this Agreement;
4. you or any of your owners is proven to have engaged in fraudulent conduct, or
are convicted of, or plead guilty or no contest to a felony or a crime involving moral turpitude, or any
other crime or offense that is reasonably likely to have an adverse effect on the System, the Marks or the
goodwill associated therewith;
5. you are given three (3) or more notices of being in material violation of any of
the terms or requirements ofthis Agreement within any twelve (12) month period, whether or not such
defaults are timely cured after notice;
6. you misuse or make any unauthorized use of the Marks and do not cease such
misuse or unauthorized use within twenty-four (24) hours' notice from us;
7. you knowingly or intentionally maintain false books or records or submit any
false record, statement or report to us; or
8. you, by act or omission, materially impair the value of, or the goodwill associated
with, any of the Marks or the System.
B. With Notice and Failure to Cure. Except for those defaults provided for under
Section 14.A above, you will be in default hereunder for any failure to maintain or comply with any of the
terms, covenants, specifications, standards, procedures or requirements imposed by this Agreement or any
other agreement you have with us or with any of our affiliates, or in any Manual, policy or procedure
statement or other written document provided by us, or to carry out the terms of this Agreement in good
faith. Before we terminate this Agreement as a result of such defaults, we will provide you with thirty
(30) days written notice of your default. If the defaults specified in such notice are not cured within the
thirty (30) day period (either by you or by any financial institution that has loaned money to you or to
your business), we may terminate this Agreement upon the expiration of the thirty (30) day period
without further notice. Such defaults will include, without limitation, the occurrence of any of the
following events:
1. you fail to construct, remodel, and commence operating your Anytime Fitness
Center within one hundred eighty (180) days from the Effective Date of this Agreement;
2. you fail, refuse, or neglect to promptly pay when due any monies owing to us,
our Affiliates, to the Fund, to the Program, or to other creditors you have, or to submit the financial or
other information required under this Agreement;
3. a threat or danger to public health or safety results from the construction,
maintenance, or operation of the Anytime Fitness Center;
4. you sell non-approved products or services; or
5. you, by act or omission in connection with the operation of your Anytime Fitness
Center, permit a continuing violation of any applicable law, ordinance, rule, or regulation of a
governmental body; provided, however, that if such act or omission damages the goodwill associated with
the System or the Marks, we will have the right to terminate this Agreement if you do not cure such
default within twenty-four (24) hours after notice from us.
FA 12/09 18