Anytime Fitness Franchise Costs: Estimated Initial Investment (Item 7, 2022 FDD)

• This table relates to the estimated initial investment for a start-up fitness center.

• None of these payments are refundable.

• These figures are estimates based on Anytime Fitness’s experience in establishing and operating Anytime Fitness centers in the last 3 years and reflect the anticipated initial costs based on a lease for a “vanilla shell” or “as is” space for the operation of a 4,500 to 5,358 square foot Anytime Fitness center.

1.  Initial Franchise/Development Fee:  $42,500

• If you sign a Development Agreement to develop multiple Anytime Fitness centers, you will pay a Development Fee based upon the number of centers you commit to open. The Development Fee replaces the Initial Franchise Fee you would have paid for those centers. You must commit to open at least 2 centers under the Development Agreement.

2.  Travel and Training Expenses:  $3,000 to $3,500

• The person you designate as the “Principal Operator” of your business must attend mandatory initial training in Woodbury, Minnesota or such other place Anytime Fitness designates. In addition, if your Principal Operator is not a Principal Owner, then a Principal Owner must also attend and complete this training to Anytime Fitness’s satisfaction before you open your Anytime Fitness center.

• While Anytime Fitness does not charge for this training, you do have to pay your travel and living expenses while you attend the training.

3.  Deposit and Leasehold Improvements:  $7,871 to $371,142

4.  3 Months’ Rent:  $23,614 to $28,116

• Anytime Fitness’s estimate for initial expenses for real estate and improvements assumes you will lease a “vanilla shell” or “as is” space, which, at a minimum, includes rooms that will work as an office, bathrooms, studio space, concrete floors, demised exterior walls, HVAC, roof, and utilities stubbed to the premises sufficient for an Anytime Fitness center.

• Anytime Fitness’s estimate assumes you will pay $14.94 per square foot for base rent and $6.05 per square foot for CAM for a full-size Anytime Fitness center. These estimates are based on the average base rents and CAM charges experienced by the Anytime Fitness system in 2021.

• The above estimates anticipate costs equal to $65 per square foot for the buildout for a full-size Anytime Fitness center. The high estimate assumes you will pay the full amount of the buildout in cash without any tenant improvement allowance by your landlord. The low estimate assumes that your landlord pays for the full build-out cost for your Anytime Fitness center. However, there is no assurance your landlord will agree to do so.

• Most of Anytime Fitness’s franchisees receive some tenant improvement allowance from their landlord (the average amount received by franchisees in the Anytime Fitness system in 2021 was $17.36 per square foot).

• Anytime Fitness’s estimate assumes you must pay only 1 month’s rent as a security deposit.

• Costs will vary in relation to the physical size and location of the fitness center. The above figures do not include extensive renovations. However, Anytime Fitness assumed the general contractor will include permitting fees in the construction costs.

• You may be required to participate in Anytime Fitness’s “Construction Management Services” program offered through Anytime Fitness’s approved vendor to oversee the construction of your Anytime Fitness center.

• At this time, participation in the Construction Management Services program is optional, but Anytime Fitness has included the $13,500 cost in the high range estimates. Anytime Fitness may transition the Construction Management Services to a mandatory program in the future.

5.  Architect/Design Fees:  $6,000 to $16,080

• You must retain Anytime Fitness’s designated architectural vendor to create a complete set of detailed Construction Documents, and to obtain any required permits, and conform the premises to local ordinances or building codes. Anytime Fitness estimates the fees for these documents will be $6,000 to $13,130 for an Anytime Fitness center.

• If you do not use Anytime Fitness’s designated architectural vendor to create the Construction Documents, Anytime Fitness will charge you a fee of $2,700 to review the Construction Documents created by another vendor.

• Anytime Fitness does not construct, remodel, or decorate your premises.

6.  Fitness Equipment:  $153,010

• The total cost of equipment will vary depending on various factors, including the size of your fitness center and the type of equipment you obtain. Some costs will vary in relation to the physical size of the fitness center and whether you purchase from Anytime Fitness’s recommended sources or from others.

• These figures reflect the ProVision basic package cost, plus an estimated 10% for taxes and an estimated 55% for shipping and installation.

7.  Technology Equipment Package:  $34,805 to $36,224

8.  Supplies:  $3,575

• This amount includes the costs for office and cleaning supplies as well as the automated external defibrillator that you are required to purchase. The AED will generally cost $2,000.

9.  Interior and Exterior Signs:  $24,000 to $26,000

• The above amounts reflect Anytime Fitness’s recommended package.

• The total cost of the signage will vary depending on various factors, including the size of your location and local zoning requirements.

10.  Miscellaneous Opening Costs:  $10,000 to $11,000

• This amount includes utility set-up and first month costs, permitting and licensing fees, and professional (legal and accounting) fees.

11.  Pre-Sale/Grand Opening Advertising:  $11,000 to $23,000

• If you are a new franchisee in the Anytime Fitness system and you open a new Anytime Fitness center, you will need to spend a minimum of between $11,000 and $23,000 (depending on your market Tier) for a Grand Opening and Ramp Up program.

• Some franchisees, particularly people who sign Area Development Agreements to control an entire market, may spend more than $23,000 per center for grand opening advertising.

12.  Insurance/Bond:  $2,900 to $3,450

• You will need to purchase and maintain in effect at all times during the term of the Franchise Agreement a bond for your business, which you are required to purchase from the franchisor’s designated surety bond vendor to secure your obligations to pre-paid members for membership fees and for pre-paid personal training revenue.

• The franchisor has negotiated a base rate of $250 per year for bonds through its designated vendor, however your actual cost may vary based on your individual circumstances.

• Further, you will need to purchase and maintain in effect at all times during the term of the Franchise Agreement a policy or policies of insurance, naming Anytime Fitness and its affiliates as additional insureds on these policies.

• You must have and maintain general liability insurance with complete operations coverage, broad form contractual liability coverage, and property damage, all with current minimum limits of $1,000,000 per person, $1,000,000 per occurrence, and $3,000,000 in the aggregate, and other insurance in the types and amounts as Anytime Fitness may require or as required by law.

• The insurance estimates do not include premiums for workers’ compensation insurance, employer’s liability insurance, or automobile liability insurance.

• Before you make a decision to purchase the franchise, you should confirm that insurance is available for a fitness center of the type you intend to operate, given that you will not staff the premises all of the time.

13.  Furniture and Fixtures:  $13,000 to $15,300

14.  Additional Funds – 3 Months:  $46,300 to $51,000

• These figures estimate your initial startup expenses during the initial 3 months. Anytime Fitness recommends that you have additional funds available to you to fund your business.

• These costs include costs for uniforms and payroll expenses for a full-time personal trainer and 2 full-time employees. These costs also include additional utility costs, keyfobs, the first 3 months of Monthly Fees, General Advertising Fees, and Base Technology Fees for a single Anytime Fitness center, and the high estimate includes a $500 extension fee.

• The estimates for a full-size Anytime Fitness center also include the minimum Local Marketing Spend.

• These costs do not include any owners’ draw amounts.

• These estimates assume that local or state law applicable to your Anytime Fitness center do not require a full-time on-site staff member or additional equipment than Anytime Fitness requires.

15.  Total Costs:  $381,575 to $783,897

• These figures are estimates based on Anytime Fitness’s and its predecessor’s experience in establishing and operating Anytime Fitness centers.