In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for an Anytime Fitness franchise, based on Item 7 of the company’s 2023 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for an Anytime Fitness franchise, based on Items 5 and 6 of the company’s 2023 FDD

Section III – Number of franchised and company-owned Anytime Fitness outlets at the start of the year and the end of the year for 2020, 2021, and 2022, based on Item 20 of the company’s 2023 FDD

Section IV – News updates on the Anytime Fitness franchise opportunity

Section V – Presentation and analysis of Anytime Fitness’ financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2023 FDD, including information on the:

• 2022 fiscal year average monthly membership count, membership revenue, personal training revenue, pay-per-visit revenue, total revenue; highest total revenue; and lowest total revenue for the fourth, third, second, and first quartile, and all 1,301 Anytime Fitness centers that were open and operating on or before September 1, 2021, started Training Suite, now known as Coaching Suite, on or before this date, operated for the 12-month period ended February 28, 2023, and reported training revenues to Anytime Fitness during this 12-month period

• 2022 fiscal year average monthly membership count, membership revenue, personal training revenue, pay-per-visit revenue, total revenue; highest total revenue; and lowest total revenue for the fourth, third, second, and first quartile, and all 120 Anytime Fitness centers that were open and operating on or before September 1, 2021, operated for the 12-month period ended February 28, 2023, and used Smart Coaching for this 12-month period

• 2022 fiscal year average revenue, cost of goods sold, gross margin, operating expenses, and earnings before interest, taxes, depreciation, and amortization for the 12 company-owned Anytime Fitness centers that were open and operating as company-owned centers for the 12 months ended February 28, 2023 and which were using Smart Coaching during this time period

• 2022 fiscal year average monthly membership count, membership revenue, personal training revenue, pay-per-visit revenue, total revenue; highest total revenue; and lowest total revenue for the fourth, third, second, and first quartile, and all 57 Anytime Fitness Express Market centers that were open and operating on or before September 1, 2021, started Training Suite, now known as Coaching Suite, on or before this date, operated for the 12-month period ended February 28, 2023, and reported training revenues to Anytime Fitness during the 12-month period

Section VI – Key ratios, comparables, computations, and analyses for the Anytime Fitness franchise opportunity (exclusive content for Platinum subscribers)

Section I – Anytime Fitness Franchise Costs

• Anytime Fitness franchise costs, based on Item 7 of the company’s 2023 FDD:

• Initial Franchise/Development Fee:  $42,500
• Travel and Training Expenses:  $1,500 to $1,875
• Leasehold Improvements:  $113,680 to $505,267
• 3 Months’ Rent + Security Deposit:  $29,507 to $47,948
• Construction Management Fees:  $0 to $13,500
• Architect/Design Fees:  $12,200 to $19,850
• Fitness Equipment:  $132,575 to $152,893
• Technology Equipment Package:  $32,118 to $36,424
• Supplies:  $3,500 to $3,800
• Interior and Exterior Signs:  $26,066 to $38,823
• Miscellaneous Opening Costs:  $9,333 to $15,894
• Pre-Sale/Grand Opening Advertising:  $11,000 to $23,000
• Insurance/Bond:  $2,900 to $3,450
• Furniture and Fixtures:  $11,562 to $17,262
• Additional Funds – 3 Months:  $46,111 to $47,611
• Total Estimated Anytime Fitness Franchise Costs:  $474,552 to $970,097

Section II – Anytime Fitness’ Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Anytime Fitness’ initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2023 FDD:

• Initial Franchise/Development Fee:  $42,500
• Monthly Fee:  currently, $699 per center for 1-9 centers; $649 per center for 10+ centers; $647 per month for Anytime Fitness Express Markets
• General Advertising Fee:  currently, $600 per month, beginning when you open your center; $300 per month for an Anytime Fitness Express Market

Section III – Number of Franchised and Company-Owned Anytime Fitness Outlets

Franchised

2020

• Outlets at the Start of the Year:  2,454
• Outlets at the End of the Year:  2,361
• Net Change:  -93

2021

• Outlets at the Start of the Year:  2,361
• Outlets at the End of the Year:  2,334
• Net Change:  -27

2022

• Outlets at the Start of the Year:  2,334
• Outlets at the End of the Year:  2,318
• Net Change:  -16

Company-Owned

2020

• Outlets at the Start of the Year:  14
• Outlets at the End of the Year:  13
• Net Change:  -1

2021

• Outlets at the Start of the Year:  13
• Outlets at the End of the Year:  13
• Net Change:  0

2022

• Outlets at the Start of the Year:  13
• Outlets at the End of the Year:  12
• Net Change:  -1

Section IV – News Updates on the Anytime Fitness Franchise

• Largest Anytime Fitness Franchise Group Sold

• Self Esteem Brands Reports Growth in 2022 of Consumer Health, Wellness Benefits Worldwide

• Anytime Fitness Houston Heights Is Making Healthy Easy!

• Anytime Fitness Ranked No. 91 on Entrepreneur’s 2023 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Anytime Fitness Franchise (Item 19, 2023 FDD)

• This Item 19 is divided into three sections. The first section relates to financial information for Anytime Fitness full-size centers operating with the Coaching Suite described below that all new franchisees will have.

Part 1 – Historical Revenues for Franchised Anytime Fitness Centers Operating with Coaching Suite

• Several years ago, the franchisor’s predecessor, AFLLC, implemented a Training Suite (also referred to as Anytime Fitness Live Programming and now referred to as the “Coaching Suite”) and recommended that Anytime Fitness full-size centers implement this program.

• In March 2019, the franchisor’s predecessor made the initial Training Suite program mandatory for new and renewing Anytime Fitness full-service centers. In addition, the franchisor’s predecessor began recommending that existing franchisees use the Training Suite, and many of those existing franchisees signed a training addendum to the Franchise Agreement, under which they began using the Training Suite.

• As of March 1, 2023, Anytime Fitness had 1,301 centers that were open and operating on or before September 1, 2021, started Training Suite, now known as Coaching Suite, on or before this date, operated for the 12-month period ended February 28, 2023, and reported training revenues to Anytime Fitness during this 12-month period.

• Anytime Fitness excluded 61 centers that permanently closed during the 12-month period ended February 28, 2023. One of these centers closed before operating for at least 12 months.

• These centers received monthly revenue from 3 primary sources. One source is monthly membership fees from ongoing members. Another source is pay-per-visit fees, which are typically paid by employers or insurance companies who pay a nominal fee on behalf of their employee or insured for each visit. A third source is coaching/personal training revenue.

• The following represents information on the average monthly membership count, and the average and median regular monthly membership revenue, pay-per-visit revenue, and coaching/personal training revenue reported to Anytime Fitness by these 1,301 Anytime Fitness centers for the 12-month period ended February 28, 2023.

• This information has not been audited, and Anytime Fitness did not independently verify the information.

• (A fourth source of revenues is one-time enrollment fees for new members, but these fees are not charged by all centers and the fees are not consistent between centers. A fifth source is vending income, which some centers do not have and is, in any event, minimal. Anytime Fitness does not provide information on these additional revenue sources.)

Average of All (1,301 Centers)

• Average Monthly Membership Count:  720
• Number/Percentage at or Above Average Monthly Membership Count:  523/40%
• Membership Revenue:  $322,273
• Personal Training Revenue:  $81,150
• Pay-Per-Visit Revenue:  $21,232
• Total Revenue:  $424,655
• Number/Percentage At or Above Average Total Revenue:  501/39%
• Highest Total Revenue:  $1,644,763
• Lowest Total Revenue:  $75,543

Fourth Quartile Average (325 Centers)

• Average Monthly Membership Count:  1,062
• Number/Percentage at or Above Average Monthly Membership Count:  142/44%
• Membership Revenue:  $513,194
• Personal Training Revenue:  $165,139
• Pay-Per-Visit Revenue:  $29,663
• Total Revenue:  $707,997
• Number/Percentage At or Above Average Total Revenue:  124/38%
• Highest Total Revenue:  $1,644,763
• Lowest Total Revenue:  $517,340

Third Quartile Average (325 Centers)

• Average Monthly Membership Count:  745
• Number/Percentage at or Above Average Monthly Membership Count:  154/47%
• Membership Revenue:  $331,510
• Personal Training Revenue:  $83,472
• Pay-Per-Visit Revenue:  $22,574
• Total Revenue:  $437,557
• Number/Percentage At or Above Average Total Revenue:  152/47%
• Highest Total Revenue:  $517,026
• Lowest Total Revenue:  $376,786

Second Quartile Average (326 Centers)

• Average Monthly Membership Count:  615
• Number/Percentage at or Above Average Monthly Membership Count:  157/48%
• Membership Revenue:  $262,202
• Personal Training Revenue:  $51,070
• Pay-Per-Visit Revenue:  $18,064
• Total Revenue:  $331,335
• Number/Percentage At or Above Average Total Revenue:  165/51%
• Highest Total Revenue:  $376,738
• Lowest Total Revenue:  $282,219

First Quartile Average (325 Centers)

• Average Monthly Membership Count:  460
• Number/Percentage at or Above Average Monthly Membership Count:  150/46%
• Membership Revenue:  $182,368
• Personal Training Revenue:  $25,013
• Pay-Per-Visit Revenue:  $14,636
• Total Revenue:  $222,018
• Number/Percentage At or Above Average Total Revenue:  175/54%
• Highest Total Revenue:  $281,810
• Lowest Total Revenue:  $75,543

• Whenever in this Item 19 Anytime Fitness refers to “Monthly Membership Count” this is the count of distinct paid members who had access to a center during the applicable month. It includes installment and paid-in-full memberships and pay-per-visit members that had a gym visit within the month. Anytime Fitness has excluded frozen and red/yellow (delinquent) members and trial and complimentary members.

Part 2 – Historical Revenues for Franchised Anytime Fitness Centers Using Smart Coaching in the Operation of Their Centers

• Anytime Fitness currently recommends that its Anytime Fitness full-size centers use what it refers to as “Smart Coaching” in the operation of the center. Smart Coaching is Anytime Fitness’ initiative for centers to use various operational and sales tools it provides to them directly or via third-party suppliers.

• These tools are made up of the VI Smart Engagement, the Coaching Dashboard, Fab 5, Evolt, and KPSOFTWORKS, which is a sales and education organization specifically focused on assisting centers to market and sell personal training services. Anytime Fitness uses Smart Coaching at its company-owned centers.

• As of March 1, 2023, Anytime Fitness had 120 centers that were open and operating on or before September 1, 2021, operated for the 12-month period ended February 28, 2023, and used Smart Coaching for this 12-month period.

• Anytime Fitness excluded the centers referenced above that permanently closed during the 12-month period ended February 28, 2023. One of these centers closed before operating for at least 12 months.

• The following represents information on the average monthly membership count, and the average and median regular monthly membership revenue, pay-per-visit revenue, and coaching/personal training revenue reported to Anytime Fitness by these 120 Anytime Fitness centers for the 12-month period ended February 28, 2023.

• This information has not been audited, and Anytime Fitness did not independently verify the information. As reported above, some of these 120 centers also received revenues from one-time enrollment fees for new members, and vending income, but those amounts were not included in these revenues.

Average of All (120 Centers)

• Average Monthly Membership Count:  782
• Number/Percentage at or Above Average Monthly Membership Count:  50/42%
• Membership Revenue:  $357,824
• Personal Training Revenue:  $119,053
• Pay-Per-Visit Revenue:  $25,800
• Total Revenue:  $502,677
• Number/Percentage At or Above Average Total Revenue:  47/39%
• Highest Total Revenue:  $1,577,478
• Lowest Total Revenue:  $176,104

Fourth Quartile Average (30 Centers)

• Average Monthly Membership Count:  1,187
• Number/Percentage at or Above Average Monthly Membership Count:  14/47%
• Membership Revenue:  $567,919
• Personal Training Revenue:  $211,235
• Pay-Per-Visit Revenue:  $42,202
• Total Revenue:  $821,356
• Number/Percentage At or Above Average Total Revenue:  10/33%
• Highest Total Revenue:  $1,577,478
• Lowest Total Revenue:  $601,326

Third Quartile Average (30 Centers)

• Average Monthly Membership Count:  760
• Number/Percentage at or Above Average Monthly Membership Count:  15/50%
• Membership Revenue:  $354,009
• Personal Training Revenue:  $125,706
• Pay-Per-Visit Revenue:  $24,854
• Total Revenue:  $504,569
• Number/Percentage At or Above Average Total Revenue:  16/53%
• Highest Total Revenue:  $571,668
• Lowest Total Revenue:  $444,320

Second Quartile Average (30 Centers)

• Average Monthly Membership Count:  674
• Number/Percentage at or Above Average Monthly Membership Count:  14/47%
• Membership Revenue:  $294,237
• Personal Training Revenue:  $84,876
• Pay-Per-Visit Revenue:  $22,457
• Total Revenue:  $401,569
• Number/Percentage At or Above Average Total Revenue:  15/50%
• Highest Total Revenue:  $443,932
• Lowest Total Revenue:  $356,055

First Quartile Average (30 Centers)

• Average Monthly Membership Count:  508
• Number/Percentage at or Above Average Monthly Membership Count:  14/47%
• Membership Revenue:  $215,133
• Personal Training Revenue:  $54,396
• Pay-Per-Visit Revenue:  $13,685
• Total Revenue:  $283,214
• Number/Percentage At or Above Average Total Revenue:  16/53%
• Highest Total Revenue:  $355,735
• Lowest Total Revenue:  $176,104

Part 3 – 2022 Statements of Revenue, Expenses, and Earnings for Company-Owned Anytime Fitness Centers

• Anytime Fitness does not receive complete operating expenses from its franchised centers. However, it does have that information from its company-owned centers.

• Anytime Fitness has taken the revenues and expenses of its 12 company-owned centers that were open and operating as company-owned centers for the 12 months ended February 28, 2023, and which were using Smart Coaching during this time period, adjusted the expenses to reflect costs franchisees will incur as noted below, and shown the results below.

• Anytime Fitness excluded one company-owned center that closed during this time period. This center was open for more than 12 months before closing.

Average (12 Centers)

• Average Monthly Membership Count:  670

Revenue

• Membership Fees:  $275,741 (58.3%)
• Personal Training/Coaching:  $180,344 (38.1%)
• Pay-Per-Visit:  $16,768 (3.5%)
• Total Revenue:  $472,852 (100.0%)

Operating Expenses

• Rent and CAM:  $109,502 (23.2%)
• Personal Training Expenses:  $97,816 (20.7%)
• Royalties:  $8,388 (1.8%)
• Processing/Credit Card Fees:  $15,440 (3.3%)
• Utilities:  $25,585 (5.4%)
• Insurance:  $2,825 (0.6%)
• Proximity Cards:  $1,876 (0.4%)
• General Advertising Fee:  $7,200 (1.5%)
• Local Marketing:  $10,200 (2.2%)
• Maintenance:  $16,805 (3.6%)
• Base Technology Fee:  $9,588 (2.0%)
• Conference Fee:  $750 (0.2%)
• KPSOFTWORKS:  $3,948 (0.8%)
• Office Expense:  $2,663 (0.6%)
• Cleaning Expense:  $6,694 (1.4%)
• License Fees:  $150 (0.0%)
• Miscellaneous:  $1,414 (0.3%)
• Total Operating Expenses:  $320,843 (67.9%)

Net Operating Income Before Manager Salary, Interest, Taxes, Depreciation, and Amortization:  $152,010 (32.1%)

Manager(s) Base Salary:  $44,102 (9.3%)

Earnings Before Interest, Taxes, Depreciation, and Amortization:  $107,908 (22.8%)

• Similar to the information on revenues for franchised Anytime Fitness centers, the franchisor has not included one-time enrollment fees for new members in its revenues, and it has not included any vending income.

• Manager’s Salary/Commission/Bonuses/Payroll Taxes/Employee Benefits – Anytime Fitness has also excluded revenues from physical therapy services since only one company-owned center had these revenues, and most franchised centers do not have these revenues.

• Monthly Franchise Fee (Royalties) – These are the franchise royalties you must pay to Anytime Fitness under your Franchise Agreement. Anytime Fitness refers to these as “Monthly Fees” in its System. This fee is reduced for franchisees that own 10 or more centers.

• Insurance – Your actual expense will vary depending on your market. The numbers shown in the chart reflect an amount of $2,825 the franchisor was given by its third-party insurance company.

• General Advertising Fee – This is the amount you must contribute to the Anytime Fitness General Advertising and Marketing Fund under your Franchise Agreement.

• Local Marketing – These are the amounts Anytime Fitness’ company-owned centers actually spent on local advertising during the 12-month period ended February 28, 2023. You may be required to spend more or less depending upon your market tier.

• Base Technology Fee – This fee is reduced for franchisees that own four or more centers. The fee Anytime Fitness has shown is the fee per center if you own three or fewer centers. You must pay this fee under your Franchise Agreement.

• Franchise Conference – Anytime Fitness holds its franchise conference every other year. Anytime Fitness estimates the costs for attendance, including travel, hotel, and the conference fee will be $1,500. The amount shown above reflects one-half of this total since you would only attend every other year.

• License Fees – This is the amount Anytime Fitness estimates a franchisee would be required to spend to maintain its health club license.

• Other – Other expenses include bank fees, courier fees, office equipment expense, and postage.

• Manager Base Salary – If you manage the center, these amounts would be additional profit or allotted for your salary. In addition, Anytime Fitness provided 401K benefits to all the employees of the company-owned centers, as it does for all its corporate employees. These figures are not included in the chart above because most of Anytime Fitness’ franchisees do not provide 401K plans to their employees.

Part 3 – Historical Revenues for Franchised Anytime Fitness Express Market Centers Operating with Coaching Suite

• As of March 1, 2023, Anytime Fitness had 57 franchised Anytime Fitness Express Market centers that were open and operating on or before September 1, 2021, started Training Suite, now known as Coaching Suite, on or before this date, operated for the 12-month period ended February 28, 2023, and reported training revenues to Anytime Fitness during the 12-month period above.

• Anytime Fitness excluded 2 centers that permanently closed during the 12-month period ended February 28, 2023. These centers were open for more than 12 months before closing.

• The 57 centers included in the data set received monthly revenue from the same sources as the Anytime Fitness full-size centers.

• The following represents information on the average monthly membership count, average and median monthly membership revenue, and pay-per-visit and personal training revenue reported by these 57 Anytime Fitness Express Market centers for the 12-month period ended February 28, 2023.

• This information has not been audited, and Anytime Fitness did not independently verify the information.

Average of All (57 Centers)

• Average Monthly Membership Count:  614
• Number/Percentage at or Above Average Monthly Membership Count:  24/42%
• Membership Revenue:  $269,042
• Personal Training Revenue:  $64,733
• Pay-Per-Visit Revenue:  $11,614
• Total Revenue:  $345,389
• Number/Percentage At or Above Average Total Revenue:  22/39%
• Highest Total Revenue:  $777,770
• Lowest Total Revenue:  $109,265

Fourth Quartile Average (14 Centers)

• Average Monthly Membership Count:  865
• Number/Percentage at or Above Average Monthly Membership Count:  7/50%
• Membership Revenue:  $417,187
• Personal Training Revenue:  $151,233
• Pay-Per-Visit Revenue:  $19,887
• Total Revenue:  $588,306
• Number/Percentage At or Above Average Total Revenue:  7/50%
• Highest Total Revenue:  $777,770
• Lowest Total Revenue:  $410,323

Third Quartile Average (14 Centers)

• Average Monthly Membership Count:  652
• Number/Percentage at or Above Average Monthly Membership Count:  6/43%
• Membership Revenue:  $298,461
• Personal Training Revenue:  $44,754
• Pay-Per-Visit Revenue:  $13,553
• Total Revenue:  $356,768
• Number/Percentage At or Above Average Total Revenue:  5/36%
• Highest Total Revenue:  $407,289
• Lowest Total Revenue:  $313,945

Second Quartile Average (15 Centers)

• Average Monthly Membership Count:  540
• Number/Percentage at or Above Average Monthly Membership Count:  7/47%
• Membership Revenue:  $219,297
• Personal Training Revenue:  $41,921
• Pay-Per-Visit Revenue:  $8,832
• Total Revenue:  $270,050
• Number/Percentage At or Above Average Total Revenue:  7/47%
• Highest Total Revenue:  $305,690
• Lowest Total Revenue:  $221,400

First Quartile Average (14 Centers)

• Average Monthly Membership Count:  406
• Number/Percentage at or Above Average Monthly Membership Count:  5/36%
• Membership Revenue:  $144,776
• Personal Training Revenue:  $22,653
• Pay-Per-Visit Revenue:  $4,382
• Total Revenue:  $171,811
• Number/Percentage At or Above Average Total Revenue:  7/50%
• Highest Total Revenue:  $220,227
• Lowest Total Revenue:  $109,265

• All of the Anytime Fitness and Anytime Fitness Express Market centers used in compiling the numbers in this Item 19 offer substantially the same products and services as you are expected to offer.

Section VI – Anytime Fitness Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️