ANYTIME FITNESS FRANCHISE DISCLOSURE DOCUMENT
ANYTIME FITNESS FRANCHISE DISCLOSURE DOCUMENT
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