ANYTIME FITNESS FRANCHISE DISCLOSURE DOCUMENT

$150,000 per location. Gaia will typically offer financing terms ranging from 36 to 60 months,
with fixed monthly payments. They will typically require two payments to be made at the
beginning of the lease, but they may require an additional down payment at the beginning of the
lease term, depending on credit approval and quality of credit. Interest rates currently range from
10% to 12% per year. The amount of the monthly payment will depend on the amount financed
and the length and type of program term. At the end of the lease, you can purchase the equipment
for $1. Gaia also offers a "Preferred Performance Program" that provides for lower interest rates
for successful Anytime Fitness franchisees that have been in business for more than two years,
subject again to credit approval and credit quality. Gaia typically does not require you to pledge
any other assets to secure the lease, but you must provide a personal guaranty.
You have the right to prepay your obligations to Gaia at any time, but if you do prepay, you must
pay all amounts due, plus an early termination payment. You will be in default under Gaia's
lease documents if you fail to pay any amounts owed when due or you breach any of the
provisions of their lease agreement. If you commit a payment default, you must pay a late charge
of 1 112% per month or, ifless, the maximum charge allowed by law. If you default, Gaia may
retake possession of the equipment and terminate your lease. They also have the right to
accelerate the lease and require that you pay the remaining balance of the lease (discounted at 6%
per annum). You must also pay the cost of repossession and Gaia's reasonable attorneys' fees
and actual court costs. You waive all special, incidental or consequential damages against Gaia
(Lease Agreement - Sections 17 and 20), and the right to notice and a judicial hearing prior to
Gaia's repossession ofthe equipment in the event of default (Lease Agreement - Section 29). A
copy of the Gaia leasing documents is attached to this Franchise Disclosure Document as
Exhibit 1-5.
6. Life Fitness, a division of Brunswick Corporation, also offers financing to our franchisees. If you
do not otherwise qualifY for Life Fitness's standard financing, Life Fitness will consider offering
financing to you under a separate agreement we have with them. This financing is, however, still
subject to credit approval. Under this arrangement, they may offer lease financing for cardio and
strength fitness equipment (at least 90% of which must be Life Fitness or Hammer Strength
equipment). The average financing is between $100,000 and $125,000. Life Fitness offers
standard fixed payments, ranging from 36 months to 48 months. They typically require two
advance payments at the beginning of the lease term, but may require up to 30% down at the
beginning of the lease term, depending on credit approval and quality. You will own the
equipment at the end ofthe scheduled payments. Interest rates currently range from 15% to 20%
per annum, depending on the strength ofthe credit and credit availability. The amount of the
monthly payment will depend on the amount financed, the interest rate, and the length and type of
program term. Life Fitness typically will not require you to pledge any other assets to secure the
lease, but you must personally guarantee the lease. Life Fitness will also retain a security interest
in the equipment that is financed. We do not guarantee your obligations to Life Fitness, but we
do have an agreement with them under which Life Fitness has the right to assign your interest in
your lease to us in exchange for our payment of the obligations. In consideration for that
agreement, Life Fitness pays us a fee of 4% per year of your outstanding obligations.
FDD
You have the right to prepay your obligations to Life Fitness at any time, and if you do prepay,
you must pay all amounts due, discounted at the rate set forth in the finance documents (currently
3% per year). Defaults include your failure to make any payments when due, or if you breach
any of your other promises in the loan documents or in any other agreements you have with Life
Fitness. If you do not pay any amount when due, Life Fitness can charge you a late payment
charge equal to the lesser of 1.5% per month, or the maximum rate permitted by law. If you are
in default, Life Fitness can also terminate your lease and require you to pay the balance of the
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