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ANYTIME FITNESS FRANCHISE DISCLOSURE DOCUMENT

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services to the fund. We will not spend any portion of any advertising fund for advertising principally<br />

designed at solicitation of the sale of franchises, unless we contribute additional amounts to the fund to<br />

cover the cost of that portion of the advertising.<br />

You must conduct a grand opening advertising and promotional program for your center within 30 days<br />

after you open your center. Also, you must, at your own expense, obtain (or contribute to the cost of<br />

obtaining) a listing for your business in the principal "yellow pages" and other telephone directory<br />

serving your area and each of these listings must be of the style, format and size we specify. You may<br />

develop additional advertising materials for your use at your own cost. Before you begin using those<br />

materials, you must submit them to us for our approval. We may also provide you with advertising<br />

materials or offer them to you at an additional cost. You are ultimately responsible for insuring that your<br />

advertising complies with all applicable laws before using them.<br />

Computer Hardware and Software<br />

You will need to purchase a computer to operate your business. We do not specify the computer you<br />

purchase. You may purchase any computer as long as it meets our minimum requirements.<br />

The system we recommend (which meets all our requirements) is available at a current cost of<br />

approximately $1,800. You can lease that system from Provision (see Item 10). This particular computer<br />

has a warranty of 12 months on parts and labor from the date of installation. However, we do not have<br />

any obligation to upgrade or maintain the hardware you purchase or the software that comes with that<br />

computer and we cannot predict the costs of upgrades or maintenance.<br />

Much of the software you will use for your computer is standard software that you will order with your<br />

computer. However, Provision will license to you the billing and payment software for your computer at<br />

no initial cost so long as you obtain your computer from Provision. If you obtain your computer from<br />

another source, then you must pay Provision a software license fee of $999 for this software (see Item 5).<br />

(We own that software, but we license it to Provision, to re-license to our franchisees.) We have been<br />

using this software (or prior versions) since our first Anytime Fitness center opened. The software is<br />

proprietary to us and we have not approved any compatible equivalent software. (Provision's principal<br />

address is 12181 Margo Avenue South, Hastings, Minnesota 55033, and its telephone number is 651-306-<br />

0066.) Provision will also provide the continuing monthly support you need to operate this software.<br />

You will pay Provision a fee, currently $89 a month, for this software support. Provision has advised us<br />

that it intends to provide software updates at no cost to you as part of the monthly support it provides, but<br />

it is not obligated to do so, and whether it does so or not is likely to depend on the extent of any upgrades.<br />

We may require you to upgrade or update your hardware or software at any time during the franchise<br />

term. There are no limitations on the frequency and costs of hardware and software upgrades or updates.<br />

We do not have any contractual obligation to upgrade or update any of your hardware, or software, during<br />

the term of the franchise.<br />

You will use your computer in a variety of ways. It will provide access control for your Anytime Fitness<br />

center, track usage of the center, and allow members reciprocity between centers. You can also add a<br />

point of sale program, but we do not require you to do so. You can also use your computer for e-mail,<br />

internet access, and word processing support.<br />

We will have access to the information in your computer, which we can access as we believe is necessary.<br />

There are no limits on our right to access this information.<br />

FDD 28

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