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ANYTIME FITNESS FRANCHISE DISCLOSURE DOCUMENT

ANYTIME FITNESS FRANCHISE DISCLOSURE DOCUMENT

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1. Anytime Fitness, Inc. v. Reserve Holdings, LLC and Joseph J. Nordquist, United States<br />

District Court, District of Minnesota, Civil File No. 08-4905, filed August 18,2008. We<br />

terminated this franchisee's franchise for breach of the Franchise Agreement. When the<br />

franchisee failed to stop operating as an Anytime Fitness center, we brought this action<br />

for trademark infringement and for enforcement of the post-termination obligations. On<br />

September 12, 2008, the court issued a Preliminary Injunction against our franchisee,<br />

requiring the franchisee to immediately stop operating any fitness business at the location<br />

of its former Anytime Fitness business, to return all confidential and proprietary materials<br />

to us, to remove and return to us, or destroy, all signage, promotional materials, and other<br />

materials bearing our mark, and to cancel all telephone and/or fax numbers and all<br />

directory listings for the former franchised business. The franchisee complied with the<br />

Order, and we settled the case, with the franchisee reimbursing us for attorneys' fees we<br />

incurred in the litigation.<br />

2. Anytime Fitness, Inc. v. Spencer Helmke, 18th Judicial District Court, Sedgwick County,<br />

Kansas, case #08SC642, filed July 31, 2008. We filed this claim in small claims court for<br />

payment of unpaid amounts owed by a former franchisee. Just before the hearing, the<br />

franchisee agreed to pay us and we settled the case.<br />

Other than these 2 actions, no litigation is required to be disclosed in this Disclosure Document.<br />

ITEM 4.<br />

BANKRUPTCY<br />

No bankruptcies are required to be disclosed in this Disclosure Document.<br />

ITEMS.<br />

INITIAL FEES<br />

We offer franchises for Anytime Fitness and Anytime Fitness Express centers. An Anytime Fitness<br />

center will typically have at least 2,500 square feet of space. An Anytime Fitness Express center typically<br />

requires less than 2,500 square feet of space, and would typically be placed in a town having less than<br />

5,000 people. In all cases, we will determine whether a particular location qualifies as an Anytime<br />

Fitness center or an Anytime Fitness Express center.<br />

Our initial franchise fee for an Anytime Fitness center is $17,999. If you (i) are installing an Anytime<br />

Fitness center in a hotel, motel or apartment complex that you own or operate that is available only to guests<br />

and employees of the hotel or motel, or residents and employees of the apartment complex, or (ii) already<br />

have an Anytime Fitness franchise and you are not in default under your other Franchise Agreement(s)<br />

with us, then we discount the initial franchise fee to $10,999 (but if the new center shares a Protected<br />

Territory with another Anytime Fitness Center that you already own, we will reduce the initial franchise<br />

fee to $6,999).<br />

Our initial franchise fee for an Anytime Fitness Express center is $10,999. However, if you are already<br />

operating an Anytime Fitness center and you want to open an Anytime Fitness Express center, we will<br />

reduce the fee to $9,999, unless the new center is in the Protected Territory of your existing club, in which<br />

case we will reduce the initial franchise fee for the Anytime Fitness Express center to $6,999.<br />

We also have a Veteran's program that offers reduced franchise fees to current members ofthe United<br />

States and Canadian Military, and veterans who received an honorable discharge from a branch of the<br />

United States and Canadian Military. If you qualifY for this discount, we will reduce the $17,999 initial<br />

FDD 4

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