If you do not use our designated architectural vendor to create the Construction Documents and this is your first Anytime Fitness center, we will charge you a fee of $2,700 to review the Construction Documents created by another vendor. You must retain a 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. In either case, if you require additional Compliance Drawings, you must pay us $250 for each additional Compliance Drawing. If you are signing the Franchise Agreement as part of a franchise renewal or transfer and we determine that your Anytime Fitness center requires renovation or re-equipment, then you must pay us $250 for your Compliance Drawing, but we will credit $250 against your Monthly Fee if you complete all renovation and re-equipment requirements by the required due date. We anticipate this design will be sufficient to provide to an architectural vendor to create your Construction Documents. If you are developing a new Anytime Fitness center, we will provide you with one Compliance Drawing at no additional cost. You must obtain a Compliance Drawing from us. (5) As described in Item 5, we will create a Compliance Drawing of your center. At this time, participation in the Construction Management Services program is optional, and the $8,500 cost is included in the high range estimates. As of the issuance date of this Disclosure Document, we anticipate that the cost of the Construction Management Services will be $6,500 to $8,500. As described in Item 8, you may be required to participate in our “Construction Management Services” program offered through our approved vendor to oversee the construction of your Anytime Fitness center. The loan must be repaid at the earlier of (i) when the landlord pays the tenant improvement money, (ii) 90 days after the last cash distribution is made to you under the loan documents, or (iii) 30 days after you open your Anytime Fitness center. We require you pay us a 6% origination fee, but we do not charge interest on the loan, unless it is in default. We may not agree to provide you this loan. The maximum amount we will finance for any franchisee is $150,000. We have a program that is exercised at our sole discretion and may provide a short-term loan to qualified franchisees when that happens so that you can pay for those improvements, pending receipt of money from your landlord. However, we assumed the general contractor will include permitting fees in the construction costs. If you are receiving a leasehold improvement allowance from your landlord, the landlord may require you show them that you paid for the leasehold improvements before giving you the money. The above figures do not include extensive renovations. Moderate and higher cost fitness centers may require extensive interior renovations and additional equipment. You may also need to provide a larger security deposit and a personal guaranty of the lease. The lower estimates assume the landlord will cover many of the leasehold improvement costs. A lower cost center is one that would require fewer leasehold improvements and fewer equipment expenditures.

Costs will vary in relation to the physical size and location of the fitness center. Our franchise model is based on minimizing overhead expenses, including real estate costs.

All our estimates are based on these assumptions. Our estimate assumes you must pay only the first month’s rent and a security deposit equal to another month’s rent. The above estimates anticipate costs equal to $59per square foot for the buildout, and assume that you will receive tenant improvement allowances of $26.38per square foot from your landlord. (4) Our estimate for initial expenses for real estate and improvements assumes you will lease a “vanilla shell” or “as is” space of 5,289 square feet 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 fees