ANYTIME FITNESS FRANCHISE DISCLOSURE DOCUMENT
ANYTIME FITNESS FRANCHISE DISCLOSURE DOCUMENT
ANYTIME FITNESS FRANCHISE DISCLOSURE DOCUMENT
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ITEM 12.<br />
TERRITORY<br />
When you sign a Franchise Agreement, you will receive the right to operate 1 Anytime Fitness center. If<br />
the site for that center has been identified before you sign the Franchise Agreement, then you must<br />
operate the center at that site. If the site becomes unavailable to you for any reason, it is your obligation<br />
to select a new location, and to obtain our approval of that location before you acquire the site,<br />
and before you obtain any rights in the location. If a site has not been identified, then we will<br />
designate an area, and you may locate your Anytime Fitness Center at any place within that area, so long<br />
as the site you select is not also within a territory of another Anytime Fitness center. Thus, until a site has<br />
been identified, you will not have any exclusive rights in the area identified in the Franchise Agreement.<br />
Once the location for your Anytime Fitness Center has been approved, we will give you a protected<br />
territory. The limitations on us in that territory are described below. We may attach a map to your<br />
Franchise Agreement that will identify the territory or we may simply describe an area surrounding your<br />
location. The map or description may not be a specific radius from your center, because it will take into<br />
account traffic patterns and natural boundaries. However, the territory will range from approximately<br />
one-half mile from your center (in densely populated metropolitan areas) to as much as 5 miles (in small<br />
towns). You may locate your Anytime Fitness center at any place within that territory, so long as the site<br />
you select is not also within the territory of another Anytime Fitness center. Territories may overlap, but<br />
we will not approve anyone opening an Anytime Fitness center, or relocating an Anytime Fitness center,<br />
into a territory given to another Anytime Fitness center. (By way of example, one person may have an<br />
Anytime Fitness center in the center of City A, with a territory of 3 miles in all directions, while another<br />
person has an Anytime Fitness center in the center of City B, located 4 miles away from the site of the<br />
first franchisee's Anytime Fitness center, and also with a territory of3 miles. While the territories<br />
overlap, each franchisee's business is located outside the territory of the other franchisee, and it cannot be<br />
relocated within the other franchisee's territory). We do not have the right to unilaterally change your<br />
territory, and there are no minimum quotas required; as long as your Franchise Agreement is in effect,<br />
you will retain the rights described in this paragraph.<br />
The criteria we use for determining the boundaries of the territory include density of population, growth<br />
trends of population, apparent degree of affluence of population, the density of residential and business<br />
entities, traffic generators, driving time, and natural boundaries. During the term of your Franchise<br />
Agreement, we will not place or license to anyone else the right to place an Anytime Fitness or Anytime<br />
Fitness Express center in your territory. However, we do have the right to place Anytime Fitness or<br />
Anytime Fitness Express centers, or grant others the right to do so, outside your territory, even if they<br />
compete for members with your center, and even if the territorial boundaries for that franchise overlap<br />
with the boundaries for your territory.<br />
We do not restrict the customers you may serve, and you may solicit customers outside your territory,<br />
including through channels of distribution such as the Internet, telemarketing or other direct marketing<br />
sales. We and our affiliates also have the right to operate, and to grant franchises or licenses to others to<br />
operate, fitness centers and other businesses offering similar services in your territory under trademarks<br />
other than "Anytime Fitness®" or "Anytime Fitness Express®," but we do not have any plans to do so at<br />
this time. In addition, we and our affiliates have the right to sell products and services (like apparel or<br />
health-related services) to your members and to others in and outside your territory, using the "Anytime<br />
Fitness®" or "Anytime Fitness Express®" name, or using any other name, through any channel of<br />
distribution, including the Internet, catalog sales, telemarketing, or other direct marketing, and may do so<br />
in your territory.<br />
FDD 29