20.02.2013 Views

ANYTIME FITNESS FRANCHISE DISCLOSURE DOCUMENT

ANYTIME FITNESS FRANCHISE DISCLOSURE DOCUMENT

ANYTIME FITNESS FRANCHISE DISCLOSURE DOCUMENT

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

<strong>ANYTIME</strong> <strong>FITNESS</strong>®<br />

AREA DEVELOPMENT AGREEMENT<br />

This Area Development Agreement is made as of the Effective Date set forth in the Rider<br />

attached to this Agreement (the "Rider") between <strong>ANYTIME</strong> <strong>FITNESS</strong>, LLC, a Minnesota limited<br />

liability company ("we" or "us") and the person or persons named in the Rider as the Developer ("you").<br />

RECITALS:<br />

A. We have invested substantial time, effort and money to develop a system of operating<br />

boutique fitness centers with the potential for minimal overhead and labor costs, and have a federally<br />

registered trademark for the names "Anytime Fitness®" and "Anytime Fitness Express,®" as well as other<br />

intellectual property rights. We grant franchises to qualified candidates for the operation of fitness<br />

centers. We also license our trademark rights in "Anytime Fitness" and may in the future adopt, use and<br />

license additional or substitute trademarks, service marks, logos and commercial symbols in connection<br />

with the operation of Anytime Fitness and Anytime Fitness Express centers (collectively the "Marks").<br />

These centers use our methods, procedures, standards, and specifications (all of which are collectively<br />

referred to as the "System") which we may improve, further develop or otherwise modifY from time to<br />

time.<br />

B. You acknowledge that you have had an adequate opportunity to be thoroughly advised of<br />

the provisions of this Agreement, the form of franchise agreement we currently use to grant rights to<br />

operate fitness centers, and our Franchise Disclosure Document, and have had sufficient time and<br />

opportunity to evaluate and investigate the System and the procedures and financial requirements<br />

associated with the System, as well as the competitive market in which it operates.<br />

C. You desire to develop and operate multiple fitness centers which use the Marks and the<br />

System.<br />

In consideration of the foregoing and the mutual covenants and consideration below, you and we<br />

agree as follows:<br />

1. Grant of Development Rights. The following provisions control with respect to the rights<br />

granted hereunder:<br />

A. We grant to you, under the terms and conditions of this Agreement, the right to develop<br />

and operate the number of fitness centers identified in the Rider (the" Anytime Fitness Centers"), using<br />

the principal trademark identified in the Rider, operating within the territory described in the Rider (the<br />

"Development Territory").<br />

B. You agree to be bound by the "Development Schedule" set forth in the Rider. Time is of<br />

the essence for the development of each Anytime Fitness Center in accordance with the Development<br />

Schedule. Each Anytime Fitness Center must be developed and operated by you pursuant to a separate<br />

Franchise Agreement that you enter into with us. If you transfer or otherwise assign your interest in any<br />

Franchise Agreement you have with us before you open the Anytime Fitness Center under that agreement,<br />

and before you have operated that business for at least six (6) months under your management, then that<br />

center will not be considered to have been developed by you, and will not count toward your compliance<br />

with the Development Schedule.<br />

C. Unless otherwise indicated in the Rider, if you are in compliance with the Development<br />

Schedule set forth in the Rider, we will not develop or operate or grant anyone else a franchise to develop<br />

and operate an Anytime Fitness Center from any location in the Development Territory prior to the earlier<br />

of (i) the expiration or termination of this Agreement; (ii) the date on which you must sign the Franchise<br />

Agreement for your last Anytime Fitness Center pursuant to the terms of the Development Schedule; or<br />

ADA 12/09

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!