Detailed Information on Anytime Fitness’s Initial Franchise Fee, Royalty Fee + 36 Other Fees (Items 5 and 6, 2023 FDD)

1.  Standard Initial Franchise Fee:  $25,000 to $42,500

• The franchisor offers franchises for Anytime Fitness and Anytime Fitness Express Market centers. The standard initial franchise fee for an Anytime Fitness center is $42,500. The standard initial franchise fee for an Anytime Fitness Express Market center is $25,000.

• However, the franchisor does offer other pricing options for veterans and for existing franchisees of Anytime Fitness and its affiliated brands (The Bar Method, Basecamp Fitness, and Waxing the City), so long as these franchisees are not in default under their existing Franchise Agreement(s) with Anytime Fitness or the applicable brand, and for people signing an Area Development Agreement to operate multiple Anytime Fitness franchises.

2.  Development Fee:  the initial franchise fee for all the centers you commit to open

• If you sign an Area Development Agreement, the initial franchise fee is referred to as a Development Fee, and you pay it in full, for all the centers you commit to open, when you sign the Area Development Agreement.

3.  Extension Fee:  $500

• You will have 12 months from the date you sign the Franchise Agreement to open and begin operating your center. If you want to extend that time for an additional 3 months, and the franchisor agrees to allow you to do so, you must pay a $500 extension fee as a condition to the franchisor granting the extension.

• After 15 months from the date you sign the Franchise Agreement, you must begin paying the monthly royalty fee (Monthly Fee) ($549 for an Anytime Fitness center and $449 for an Anytime Fitness Express center) to the franchisor, whether or not your Anytime Fitness center is open.

• If you are actively working with the franchisor’s real estate team in locating a site or have signed a lease with the assistance of the franchisor’s real estate team, the franchisor will waive the Monthly Fee until your Anytime Fitness center is open.

4.  Compliance Drawing:  $250 for each additional Compliance Drawing after the first

• The franchisor will create a specific club layout/design (“Compliance Drawing”) of your center using the as-built drawings, surveys, technical data, and site plans you provide. You must obtain a Compliance Drawing from the franchisor.

• If you are developing a new Anytime Fitness center, the franchisor will provide you with one Compliance Drawing at no additional cost.

• If you are signing the Franchise Agreement as part of a franchise renewal or transfer and the franchisor determines that your Anytime Fitness center requires renovation or re-equipment, then you must pay the franchisor $250 for your Compliance Drawing, but it will credit $250 against one Monthly Fee payment if you complete all renovation and re-equipment requirements by the required due date.

• In either case, if you require additional Compliance Drawings, you must pay the franchisor $250 for each additional Compliance Drawing.

5.  Monthly Fee:  currently, $699 per center for 1-9 centers; $649 per center for 10+ centers; $647 per month for Anytime Fitness Express Markets

• Due Date:  On or before the first day of each month.

• You will begin paying this fee after you open your center, but if you have a Protected Territory and have not opened after 15 months, you then must begin paying this fee.

• If you are actively working with the franchisor’s real estate team in locating a site or have signed a lease with the franchisor’s assistance, the franchisor will waive the Monthly Fee until your Anytime Fitness center is open.

• For Anytime Fitness centers, this fee includes the monthly Coaching Suite fee.

• Any Anytime Fitness Express Markets do not count when calculating the number of centers that you operate for purposes of calculating the Monthly Fee.

6.  General Advertising Fee:  currently, $600 per month, beginning when you open your center; $300 per month for an Anytime Fitness Express Market

• Due Date:  On or before the first day of each month.

• The franchisor reserves the right to increase the General Advertising and Marketing Fund Contribution upon 60 days’ written notice to you, provided it will not exceed the greater of $600 per month ($300 per month for Anytime Fitness Express Markets) or 2% of Gross Revenue (which may be calculated on a weekly basis).

7.  Grand Opening and Ramp Up Program:  $11,000 to $23,000 for an Anytime Fitness center; no minimum for an Anytime Fitness Express Market

• Due Date:  As incurred.

• You will not pay these amounts to the franchisor but it may require you to submit receipts to verify you met this requirement.

• If you fail to spend the minimum required amount on the Grand Opening and Ramp Up Program, the franchisor has the right to require you to pay the difference into the General Advertising and Marketing Fund.

• You are not required to spend a minimum amount on a Grand Opening and Ramp Up Program for an Anytime Fitness Express Market center.

8.  Base Technology Fee (formerly, Global Access Fee):  currently, $799 per center for 1-3 centers; $649 per center for 4-9 centers; $599 per center for 10-24 centers; $549 per center for 25+ centers

• Due Date:  On or before the first day of each month.

• Once you begin operating, you pay this fee to the franchisor or its affiliate for ongoing support for its proprietary access control software, development and release updates of that software, access to Anytime Health resources and memberships, email hosting, fitness scanning and/or monitoring, sound system services, and cellular communications.

• As part of this fee, ProVision will also provide security monitoring services and ongoing support for your technology, email, club operating software, and club management software.

9.  Construction Document Review Fee:  $2,700

• Due Date:  Immediately after notice from the franchisor.

• You must pay the franchisor this fee if this is your first Anytime Fitness center and you do not use the franchisor’s designated architectural vendor to complete your Construction Documents.

10.  Coaching Suite Fees:  currently, 1-3 centers: $149 per center; 4-9 centers: $109 per center; 10+ centers: $109 per center for the first 9 centers, and $0 for each additional center thereafter. The franchisor reserves the right to periodically increase this fee; however, it will not increase this fee to more than $300 per center per month.

• Due Date:  On or before the 1st day of each month.

• You will only pay this fee to the franchisor for Anytime Fitness center(s) in which you are implementing the Coaching Suite if those centers are operating pursuant to Franchise Agreements dated March 28, 2019 or earlier.

11.  Coaching Suite Registration Fee:  currently, $250 per person

• Due Date:  At the time training is scheduled.

• Currently, there is no Registration Fee as a new or renewing franchisee for you to attend the Coaching Suite Training that is conducted as part of the franchisor’s initial training program.

• If you are an existing franchisee that will now offer the Coaching Suite at your center, and have not already attended training, then you must attend the Coaching Suite Training.

• In addition, you are responsible for travel costs, room and board, and the salaries, fringe benefits, and other expenses you and your employees incur.

12.  On-Site Coaching Suite Registration Fee:  $6,000 for 1 owner, with up to a total of 21 attendees. $4,500 per owner for 2 owners, with up to a total of 21 attendees. $3,500 per owner for 3 owners, with up to a total of 21 attendees.

• Due Date:  At the time training is scheduled.

• This fee is paid in the event you choose to complete the Coaching Suite Training in the field, on-site at your Anytime Fitness center, or the center of a participating owner.

• Training is a two-day customized, interactive program provided by corporate staff. Training is provided for up to 21 attendees and includes pre-visit communication and post-visit follow-up for each owner. Attendees must be employees of the participating owner(s).

• Travel costs, room, and board for corporate staff are included in this fee.

13.  On-Site Relaunch Training or Additional Assistance Fees:  currently, $3,000

• Due Date:  At the time training is scheduled or on the closing date of a club sale, whichever is earlier.

• On-Site Relaunch Training: If you are a new franchisee purchasing an existing club, the franchisor will send a representative or designee out to the purchased club for 2 to 6 days of required, on-site training for you and your staff in club operations.

• Length of training is at the franchisor’s discretion.

• Travel costs, room, and board for corporate staff are included in the fee.

• Additional Assistance: If you ask the franchisor, or if the franchisor determines you need, additional assistance in operations training, the franchisor will send a representative or designee out to the purchased club for 2 to 6 days of required, on-site training for you and your staff in club operations.

• Length of training is at the franchisor’s discretion.

• Travel costs, room, and board for corporate staff are included in the fee.

14.  On-Site Relaunch Re-booking Fees:  $1,500 for each re-booking

• Due Date:  Upon re-booking.

15.  On-Site Training Cancellation Fees:  $0 to $10,500 depending upon the type of scheduled training and how far in advance you cancel the training

• Due Date:  Upon cancellation or rescheduling.

16.  No Show Fees:  currently, $500 or the actual costs of rescheduling travel, whichever is greater

• Due Date:  Immediately after notice from the franchisor.

• If you are scheduled for an on-site visit by the franchisor’s representative or designee or register for an in-person training program, and you fail to attend, fail to have the appropriate parties attend, or fail to stay for the entire program, and you did not provide the franchisor at least 2 weeks’ advance notice that you would not be attending, then you must pay this fee.

17.  Healthy Contributions Fitness Incentive Program – Initial Fees:  currently, no cost for set-up of the first Fitness Incentive Program, and $20 for each additional Fitness Incentive Program. Also, currently, a $1.50 initial member fee for each member you enroll on the Healthy Contributions website, and $3 for each member enrolled by a Healthy Contributions staff member upon club’s request.

• Due Date:  Paid by ACH or similar draft, generally 40-45 days after each activity month end.

• Payable to Healthy Contributions if members or non-member attendees of your location are participating in Fitness Incentive Programs administered by Healthy Contributions. Fees are for the ongoing work in administering, transferring, processing, and distributing funds and data for all fitness incentive programs.

18.  Healthy Contributions Fitness Incentive Program – Ongoing Fees:  currently, a $5 fee per each Fitness Incentive Program per month, a monthly transaction fee of $0.15 or $0.25 per active member for each applicable deposit, a $0.15 per member, per month maintenance fee for data storage and security, and a $0.50 total transaction fee per month. This will change to a flat fee percentage billing at: Pay Per Visit: flat 3.5% of received payment; Reimbursement: 3.5% of membership dues; Group Membership Program: 3.5% of received payment.

• Due Date:  Paid by ACH or similar draft, generally 40-45 days after each activity month end.

• Payable to Healthy Contributions if members or non-member attendees of your location are participating in Fitness Incentive Programs administered by Healthy Contributions. Fees are for the ongoing work in administering, transferring, processing, and distributing funds and data for all fitness incentive programs.

19.  Charitable Contribution:  $100 per month

• Due Date:  On or before the first day of each month.

• Although the franchisor currently does not require you to pay this charitable contribution, in the future it may require you to pay $100 per month to Heartfirst Charitable Foundation or another charitable organization the franchisor designates.

20.  Inspection Fee:  generally $50 to $100

• Due Date:  Upon notice from the franchisor. Your billing vendor will subtract this fee from the receipts generated by your accounts.

• The franchisor reserves the right to have someone conduct an inspection of your center after you open. If you fail the inspection, the center will be re-inspected, and you may then have to reimburse the franchisor for its costs of additional inspections until the center passes an inspection.

• As long as you pass the initial inspection, you will not incur this cost.

21.  Peer Compliance Committee Default Fee:  up to $1,000 per violation

• Due Date:  Immediately after notice from the franchisor.

• If you breach certain provisions of your Franchise Agreement, the franchisor can submit the default to a “Peer Compliance Committee” made up of other franchisees. If they determine a breach occurred, they may levy a fine against you of up to $500.

• If you do not timely cure, or breach the provisions again, the next fine can be up to $1,000.

• All fines will be donated directly to the HeartFirst Charitable Foundation or another charitable organization to be designated by the franchisor.

• Any fines the Peer Compliance Committee may assess are in addition to the standard default fee described below and any damages or costs the franchisor may incur as a result of the default.

22.  Standard Default Fee:  up to $250 per violation

• Due Date:  Immediately after notice from the franchisor.

• In addition to its right to terminate the Franchise Agreement, if you breach certain provisions of your Franchise Agreement, and you fail to cure the default during the cure period provided, you must pay the franchisor a fee of up to $250 per month until the default is cured in order to offset the franchisor’s costs incurred to address the default.

• This standard default fee is in addition to any fines that may be assessed through the Peer Compliance Committee.

23.  Marketing Materials:  currently, $5,000

• Due Date:  When incurred.

• You must purchase marketing materials for promotions the franchisor requires.

• This amount is for the first year of operations. After the first year, the amount will vary based upon your needs, but will count against your Local Marketing Spend requirement discussed below.

24.  Conference Fee:  currently, $459 for early registration, increasing to $689 at the Conference

• Due Date:  When you register for the Conference.

• You must pay this fee in those years in which a Conference is scheduled, for one center, regardless of how many centers you open, even if you do not register for the Anytime Fitness Conference. It gives you a registration for a Principal Owner of your business to attend or participate in the Anytime Fitness Conference.

25.  Continuing Engagement Credit Fees:  up to $1,200 for each year you fail to complete 1,200 continuing engagement credits (“CEC”), as outlined in the Operations Manual

• Due Date:  During the first quarter of each calendar year.

• The franchisor will contribute these fees to the General Advertising and Marketing Fund.

26.  Customer Service Webinar:  currently, $250

• Due Date:  Immediately after notice from the franchisor.

• If you fail to meet the franchisor’s customer service standards, you must take the franchisor’s customer service webinar and pay this fee.

• If you do not take the webinar within the time the franchisor requires, you will be charged an additional $250 per month until you attend the webinar.

27.  Renewal Fee:  $4,500, reduced to $4,000 if the franchisor receives the fee and all your signed renewal documents, at least 30 days before your franchise expires

• Due Date:  At least 30 days before the term of your Franchise Agreement expires.

• You only pay this fee if you want to renew your franchise.

28.  Transfer Fee:  $7,500 or $12,000

• Due Date:  Before you transfer the franchise.

• If you transfer the franchise before you open the center, the fee will be $12,000. If you transfer the franchise after you open, the transfer fee is $7,500.

• You only pay this fee if you sell your franchise or your interest in it.

29.  Relocation Fee:  $1,500

• Due Date:  When you submit a request to move your center.

• You must obtain the franchisor’s consent to relocate your business. If the franchisor does not approve your request, it will refund the fee.

• It is currently the franchisor’s policy to waive the fee if you work with the franchisor’s real estate team to obtain a new site.

30.  Liquidated Damages:  $10,000

• Due Date:  If you fail to develop an Anytime Fitness center by the deadline provided in an Area Development Agreement that you sign.

• This fee only applies if you sign an Area Development Agreement, and it then applies for each Anytime Fitness center you fail to develop under that agreement.

31.  Insurance/Bond Handling Fees:  currently, $100

• Due Date:  Immediately after notice from the franchisor.

• You only pay this fee to the franchisor if you fail to obtain insurance or a health club surety bond, and it obtains the insurance coverage or the surety bond for you. This fee does not include the cost of insurance or bond premiums for which you must also reimburse the franchisor.

32.  Costs and Attorneys’ Fees:  will vary under circumstances

• Due Date:  Immediately after notice from the franchisor.

• You only pay this amount if the franchisor is successful in any legal action it brings against you, or in defending any claim you bring against it.

33.  Interest:  the lesser of 1.5% per month or the maximum rate allowable by applicable law

• Due Date:  As incurred.

• Payable on all overdue amounts.

34.  Indemnification:  will vary under circumstances

• Due Date:  As incurred.

• You have to reimburse the franchisor if it is sued or held liable for claims arising out of your business.

35.  Club Enhancement Program:  $500 per month

• Due Date:  Each month after you begin operating.

• These are your funds that the franchisor recommends you set aside to remodel your Anytime Fitness center to current standards as a condition to renewing your franchise and to provide other updates to your center.

• However, the franchisor has the right to require you to pay these amounts to it to hold for you.

36.  Local Marketing Spend:  $600, $800, or $1,000 per month, depending on your market tier; no minimum for an Anytime Fitness Express Market center. Currently, $350 one-time setup fee if the franchisor conducts the local marketing on your behalf.

• Due Date:  As incurred.

• After the Grand Opening and Ramp Up Plan, you must spend a required amount per month on approved local advertising, depending on your market tier.

37.  PT Revenue Reporting Fee:  $500

• Due Date:  As incurred.

• You will be charged this fee for each month you do not report your PT revenue through the franchisor’s designated club management software or its mandated billing platform.

38.  DMA Violation:  $1,000 to $10,000 based on the frequency of the violation and severity of conduct

• Due Date:  If you secure real estate and do not comply with the franchisor’s requirements for securing real estate within a DMA.

• Only payable if you fail to comply with the requirements for securing a site within the DMA.