ANYTIME FITNESS FRANCHISE DISCLOSURE DOCUMENT

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7. This amount includes gas, electric, water, cable, Internet and telephone. S. This amount assumes you signed up each of your members in the current year. In reality, your cost for proximity cards will be less after the first year, because you will not have to issue new proximity cards to each member each year. 9. This amount is based on our current requirement that you contribute $150 per month to our national advertising fund. 10. We expect you to spend at least $6,000 per year for advertising. However, we recommend you spend more, and our projection assumes you spend at least $S,OOO, and that your spending increases as you have more members. This amount includes any amount we may require you to contribute to a local marketing fund. 11. Miscellaneous includes janitorial services, legal and accounting fees, cell phone, supplies, licenses, bank charges, and other similar items. Many of these costs can vary significantly depending on the location of your center and the time you spend looking for the best possible cost on these items. The projections are consistent with the experience of our company owned centers. Additional Assumptions: A. The projections assume you act as manager of your center and do not receive a separate salary. They assume you do not hire any other employees to help you. Because our centers are designed to operate 24 hours a day, without the necessity of having staff on premises, you should not need any other employees. However, some states will require you have an employee on premises whenever your center is open. If you are an absentee-owner, or you operate in a location that requires the center to be staffed at all times, your expenses will increase significantly because you will have to pay salaries and benefits to employees. In our company-owned centers, we do have to pay a manager, or a management fee, to somebody to oversee the centers for us. Thus, we would have had additional expenses for wages or management fees. B. We did not provide any allowance for corporate or personal income taxes. C. While we did include expenses for a lease/purchase of your equipment, we did not include any other expenses for depreciation, amortization, interest, or the repayment of debt. We anticipate every franchisee will fund its initial investment differently, and we therefore cannot project how you would account for these items. D. The projections are based on economic conditions that existed in February 2009, with no consideration in any category for inflation related adjustments or further weaknesses in general economic conditions. E. The projections assume you follow our guidelines in terms of the products and services you offer and the way you operate your business. If you do not, your results will likely vary dramatically from the results we have projected. Of the 10 centers we used in compiling these projections, 9 of them were open during all of200S. 9 of the 10 centers had over 400 members, 70fthe 10 had over 600 members, and 4 of the 10 had over SOO members, as of the end of200S. It does, however, take several months to build your membership, and you should not expect to achieve these levels during your first year. 9 of the 10 centers exceeded the revenue and income projections in the first (400 members) column, 5 exceeded the revenue and income projections in the second (600 members) column, and 4 exceeded the revenues and income projections in FDD 39
the third (800 members) column. Because our franchisees are not required to give us this level of detail as to their revenues and expenses, we cannot tell you how many of our franchisees exceeded the projected revenues or projected profits. If you request, we will provide information to you to substantiate these projections. Written substantiation for the financial performance representations made in this Item 19 will be made available to you upon reasonable request. We do not recommend a particular accounting method or system to you. All of the centers we used in compiling these projections used the accounting system we and our affiliates use in centers we operate. That system is consistent with generally accepted accounting principles. We provided substantially the same services to those centers as we will offer to you. All of these centers offered substantially the same products and services as you are expected to offer. We do not furnish or authorize our salespersons to furnish any oral or written information concerning the actual, average or potential sales, costs, income or profits of an Anytime Fitness Express business. Actual results will likely vary from one center to another, and we cannot estimate the results of any particular center. If you receive any oral or written information concerning the actual, average or potential sales, income or profits of an Anytime Fitness Express center from any of our representatives, or from a person claiming to act on our behalf, you should immediately report that incident to us, as we have not authorized that information. You should not rely on any oral or written estimate or projection of sales, income or profits, or statement of actual, average, estimated or potential sales, income or profits of an existing or future Anytime Fitness Express center, because reliance on that information would not be reasonable in light of the fact that we have not authorized that information to be provided to you or to any other prospective franchisee. FDD Outlet Type Franchised Company- Owned Total Outlets ITEM 20. OUTLETS AND FRANCmSEE INFORMATION SYSTEMWIDE OUTLET SUMMARY FOR YEARS 2006 TO 2008 Outlets at the Outlets at the Year Start of the End of the Year Year 2006 117 297 2007 297 582 2008 582 939 2006 8 11 2007 11 11 2008 11 7 2006 125 308 2007 308 593 2008 593 946 40 Net Change +180 +285 +357 +3 +0 -4 +183 +285 +353
Page 1 and 2: ANYTIME FITNESS FRANCHISE DISCLOSUR
Page 3 and 4: ANYTIME FITNESS, LLC FRANCmSE DISCL
Page 5 and 6: operations and licenses. Many state
Page 7 and 8: 1. Anytime Fitness, Inc. v. Reserve
Page 9 and 10: If you are an existing franchisee t
Page 11 and 12: Type of Fee (Note 1) Amount (Note 2
Page 13 and 14: AMOUNT TYPE OF ANYTIME METHOD TO WH
Page 15 and 16: (7) We require you have an automate
Page 17 and 18: We may negotiate preferred vendor c
Page 19 and 20: Section in Franchise Section in Dev
Page 21 and 22: Under the personal guaranty, which
Page 23 and 24: $150,000 per location. Gaia will ty
Page 25 and 26: ITEM 11. FRANCmSOR'S ASSISTANCE, AD
Page 27 and 28: Name Subjects Taught Background Deb
Page 29 and 30: the initial training, will provide
Page 31 and 32: services to the fund. We will not s
Page 33 and 34: ITEM 13. TRADEMARKS The Franchise A
Page 35 and 36: Provision b. Renewal or extension o
Page 37 and 38: Section in Franchise or Provision O
Page 39 and 40: Section in Franchise or Provision O
Page 41: ACCOUNTANT HAS AUDITED THESE FIGURE
Page 45 and 46: State Year Number of Transfers 2006
Page 47 and 48: Reacquired Ceased Outlets by the Op
Page 49 and 50: Outlets Outlets at Reacquired Outle
Page 51 and 52: Name l City and State Telephone Num
Page 53 and 54: Name l City and State Telephone Num
Page 55 and 56: FDD EXHIBIT A LIST OF STATE AGENCIE
Page 57 and 58: Virginia State Corporation Commissi
Page 59 and 60: FDD EXHIBITB TABLE OF CONTENTS OF O
Page 61 and 62: 150 -151 152 153 153 154 -160 161 -
Page 63 and 64: FDD EXHIBITC LIST OF FRANCmSEES AS
Page 65 and 66: Name Scott & Shelby Mitteer Shane M
Page 67 and 68: Name Address Telephone GymDay Corp.
Page 69 and 70: Name Address Telephone Full of Life
Page 71 and 72: Name Address Telephone Colorado 534
Page 73 and 74: Name Address Telephone Good Life Ve
Page 75: Name Address Telephone H-I02 Inc. 1
Page 78 and 79: Name Address Telephone Chris Naples
Page 80 and 81: Name Address Telephone Bill Taylor
Page 82 and 83: Name Address Telephone Make It Happ
Page 84 and 85: Name Address Telephone Joe Koeppl 1
Page 86 and 87: Name Address Telephone Temple Keepe
Page 88 and 89: Name Address Telephone 7350 West St
Page 90 and 91: Name Address Telephone 24 Fitness,
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Name Address Telephone Dana Cates H
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Name Address Telephone Metairie Fit
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Name Address Telephone Ultimate Sec
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Name Address Telephone NK Fitness,
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Name Address Telephone FIF, Inc. 65
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Name Address Telephone J Abernethy,
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Name Address Telephone Kenneth & Kr
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Name Miranda Hills Miranda Hills Mi
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Name Address Telephone Kenny Stubbl
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Name Address Telephone West-Am Fitn
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Name Address Telephone 24 Fitness,
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Name Address Telephone Clifford Pie
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Name Address Telephone Rick Whittin
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Name Address Telephone Effects Pers
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Name Address Telepbone RL W Enterpr
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Name Address Telephone Silent Owl,
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Name Address Telephone 2101 Broadwa
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Name Address Telephone Dennis Rudni
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Name Address Telephone Fitness 180,
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Name Address Telephone 1604 N Calab
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Name Address Telephone Jerry Greger
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Name Address Telephone CM Fitness,
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Name Address Telephone Erik Recende
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Name Address Telephone Helen Wada 1
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Name Address Telephone Scott Schimm
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FDD EXHIBITD FINANCIAL STATEMENTS
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ANYTIME FITNESS, INC. FINANCIAL STA
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- This page intentionally left blan
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ANYTIME FITNESS, INC. STATEMENT OF
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ANYTIME FITNESS, INC. NOTES TO FINA
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ANYTllvIE FITNESS, INC. FINANCIAL S
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SUPPLEMENTAL DISCLOSURES OF CASH FL
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FA 12/09 FRANCHISE AGREEMENT ANYTIM
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ANYTIME FITNESS FRANCHISE AGREEMENT
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fees and a modification to the Prot
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5. MONTHLY FEE A. Monthly Fee. You
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1. We will have ten (10) business d
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containing such Marks as we designa
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1. You acknowledge that the mandato
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You will also allow us to visit you
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insurance program and waive any cla
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7. prior to the date of the propose
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C. Applicable Law. If the provision
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17. YOUR COVENANTS NOT TO COMPETE A
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arbitration proceeding brought agai
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provisions relating to assignment.
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L. Patriot Act. You represent and w
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1. Effective Date: ________ _ FRANC
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PERSONAL GUARANTY AND AGREEMENT TO
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STATE SPECIFIC ADDENDUM TO FRANCHIS
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IN WITNESS WHEREOF, the undersigned
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STATE SPECIFIC ADDENDUM AS REQUIRED
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ADA 12/09 AREA DEVELOPMENT AGREEMEN
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ANYTIME FITNESS® AREA DEVELOPMENT
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provided, however, that you will no
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1. Effective Date: _______ _ AREA D
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PERSONAL GUARANTY AND AGREEMENT TO
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STATE SPECIFIC ADDENDUM TO DEVELOPM
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FDD EXHIBITG STATE SPECIFIC ADDENDA
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5. The Franchise Agreement contains
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TOGETHER WITH A COPY OF ALL PROPOSE
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exercising a right of first refusal
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6. The following is added in Item 1
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Financing Consultant Agreement You,
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FDD EXHffiITI-l US BANK FINANCE DOC
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FDD AMERIFUND FINANCE DOCUMENTS
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SCBEDULE"A" COLLATERAL For the Fina
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FDD ExmBIT 1-3-2
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REQUEST FOR DRIVER'S LICENSE Please
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FDD EXHIBIT 1-3-3
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(9) Lessee shall have no remedy for
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Purchase Option Lease #: _____ _ Fo
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FDD EXHIBIT 1-4 KLC FINANCIAL, INC.
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GAIA Leasing LLC 50 South Sixth Str
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11. Location, Ownership and Use The
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(b) The failure of Lessee to perfor
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EXHIBIT A EARLY TERMINATION SCHEDUL
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FDD EXHIBIT 1-6 LIFE FITNESS FINANC
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Re: "Obligor" Personal Guaranty To
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EQUIPMENT LEASE AGREEMENT THIS AGRE
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and Lessor. At Lessor's option, all
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(b) Lessee shall fail to make any o
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this Lease inures to the benefit of
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IF LESSEE IS OTHER THAN AN INDIVIDU
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EXHIBIT A AGREEMENT OF UNCONDITIONA
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FDD EXHIBIT J PROVISION SECURITY SO
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e. ProVision Materia/s. In connecti
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Hosting Services Fee = $19.99 Monit
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9. General a. Independent Contracto
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ITEM 23. RECEIPT This Disclosure Do
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ITEM 23. RECEIPT This Disclosure Do
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