ANYTIME FITNESS FRANCHISE DISCLOSURE DOCUMENT

the initial training, will provide and be responsible for this training. We do not require you to attend this
training after the first year you operate your business. However, during the first 12 months following the
opening of your Anytime Fitness center, you must either attend our annual conference, or one of our
monthly sales training programs. If you do attend, you will not have to pay us any fees for attendance,
but you will be responsible for travel costs, room and board, and the salaries, fringe benefits, and other
expenses you and your employees incur in attending the training program. The materials we use for this
training are developed each time from a variety of sources.
Site Selection and Opening
We or one of our affiliates will provide you with consulting services to assist you in evaluating and
selecting a site for your Anytime Fitness center. It is your obligation to select a site for your business and
obtain our approval of that site. While we will assist you, we do not locate or select a site for you, or
negotiate the purchase or lease of a site, and we do not own the premises and lease them to you. Before
you acquire any site, you must submit to us information and materials we require and obtain our approval
to your site. The factors we take into account in approving a site are the visibility of the site, the retail
feel of the site, the location of competitors whether the site is easily accessible and similar factors. An
Anytime Fitness center should have at least 2,500 square feet of space. An Anytime Fitness Express
center typically requires less than 2,500 square feet of space, and would typically be placed in towns
having a population of under 5,000.
We expect the typical length oftime between the signing of your Franchise Agreement and the opening of
your Anytime Fitness center to be between 90 and 180 days, unless you are converting an existing fitness
facility, in which case the time should be less than 60 days. Ifwe are unable to agree on a site within 90
days after you sign the Franchise Agreement, we have the right to terminate your Franchise Agreement.
Ifwe exercise this option during the first 120 days after you sign the Franchise Agreement, then you may
sign a termination agreement and release us from all further obligations, in which case we will refund
$5,000 of your initial franchise fee (unless the initial franchise fee was less than $10,000, in which case
we will retain $5,000 and refund any balance).
If you sign an Area Development Agreement, you must sign individual Franchise Agreements and begin
operating Anytime Fitness centers under each of those agreements within the time provided for in your
Development Schedule. If you fail to open a center on the date set forth in the Development Schedule,
we will have the right to terminate the Area Development Agreement, and you will be obligated to pay us
$10,000 for each undeveloped center as liquidated damages.
Advertising
You agree in your Franchise Agreement to contribute amounts to the Anytime Fitness Advertising and
Marketing Fund, an amount not to exceed the greater of (i) $150 per month, or (ii) 1 % of all the revenues
you generated in your business during the previous 12 months. Currently, the amount we require to
contribute is $150 per month. We require all our franchisees to contribute to this fund, but some
franchisees have older forms of agreement that only allow us to charge them a fixed amount ($150 per
month). Our company-owned centers also pay $150 per month to the fund.
We account for the contributions to this fund separately from our other revenues, and we do not use them
to pay any of our general operating expenses other than our costs of administering the fund, including
salaries and overhead in administering the fund. The purpose of the fund is to develop marketing and
advertising programs that benefit the Anytime Fitness brand. This means we may use monies in the fund
for any purpose that promotes the Anytime Fitness (and Anytime Fitness Express) name, including to
create advertising materials or public relations campaigns, or to implement advertising. We do most of
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