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ANYTIME FITNESS FRANCHISE DISCLOSURE DOCUMENT

ANYTIME FITNESS FRANCHISE DISCLOSURE DOCUMENT

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If you are an existing franchisee that wants to sign an Area Development Agreement to open additional<br />

Anytime Fitness centers, the Development Fee will be $10,999 for each Anytime Fitness center to be<br />

developed under that agreement, or $8,999 each if you qualify for the Veteran's program.<br />

If you sign an Area Development Agreement to develop 2 Anytime Fitness Express centers, you pay a<br />

Development Fee of$18,998 (an average of $9,449 for each center). We reduce this fee to $16,998 (an<br />

average of $8,499 each) if you qualify for the Veteran's program. If you sign an Area Development<br />

Agreement to develop 3 or more Anytime Fitness Express centers, you pay a Development Fee of $8,999<br />

times the number of centers we require you to open, or $7,999 each if you qualify for the Veteran's<br />

program.<br />

If you are an existing franchisee that wants to sign an Area Development Agreement to open additional<br />

Anytime Fitness Express centers, the Development Fee will be $8,999 times the number of centers we<br />

require you to open, or $7,999 times the number of centers we require you to open if you qualify for the<br />

Veteran's program.<br />

All portions of the Development Fee are payable in full when you sign the Development Agreement and<br />

are nonrefundable. You will not pay an Initial Franchise Fee for any of the Anytime Fitness centers we<br />

require you to develop under the Area Development Agreement. (In our last fiscal year, we only offered<br />

Area Development Agreements for Anytime Fitness centers (and not Anytime Fitness Express centers).<br />

The Development Fees ranged from $9,999 to $12,499 per center, depending on the number acquired.)<br />

There are other fees you will pay to our affiliate, Provision, before you begin operating. You must buy<br />

access card readers for your access control system from Provision as these are the only readers that will<br />

allow your members to use their reciprocity benefits. The cost is $799 for each card reader. We expect<br />

that most franchisees will purchase 3 card readers, but we only require you to purchase 1 reader (unless<br />

you have multiple tanning beds, in which case you will need one card reader for each tanning bed), and<br />

the most that anyone purchased last year was 5 readers. The access cards you purchase from Provision<br />

(also sometimes referred to as "proximity cards") currently sell for $3.75 to $4.75 each. You can decide<br />

how many access cards you want to initially purchase, but there is a minimum order of 100. Last year,<br />

the most access cards anyone purchased from Provision before opening was 400. These payments are not<br />

refundable.<br />

We expect that most of our franchisees will also purchase their operating systems from Provision. This<br />

will include the computer system, security system, video monitors, and digital video recorders. The cost<br />

of these systems typically ranges from $16,000 to $23,000 for an Anytime Fitness center, and $14,000 to<br />

$16,000 for an Anytime Fitness Express business. If you choose to purchase your computer somewhere<br />

else, then you must pay Provision a one-time software configuration fee of $999. In addition, if you have<br />

someone else install the security components of your operating system, you must pay us a fee to have<br />

someone inspect the installation to confirm it complies with our manual. The fee is $1,999. If we find<br />

any deficiencies, we will correct those deficiencies, but you must pay us our then-current hourly support<br />

fee to do so. This fee is currently $85 an hour. None of the payments discussed in this paragraph are<br />

refundable.<br />

FDD 6

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