Anytime Fitness Inc.
Date of Incorporation: 2002
Franchising Since: 2002
Headquarters: South Hastings, Minnesota
Country:U.S.
Description: The franchise system consists of boutique fitness centers with the potential for minimal overhead and labor costs. There is a card access and security system that allows members of an Anytime Fitness center to have access to any Anytime Fitness center 24 hours a day, automated tanning and vending services, and reciprocal benefits between centers. In some cases, the franchise may be allowed to not be accessible 24 hours a day. An Anytime Fitness Express will be smaller in size than the Anytime Fitness center, equipped with no showers, one tanning bed, and will generally be located in a town of less than 5,000 people.
Franchise Offer: Two types of franchise:
- The franchisee is granted the right to operate one Anytime Fitness center at a location specified by the franchisor in the Franchise Agreement. If the center will have more than 2,500 square feet, it will usually be identified as an Anytime Fitness center. If it has less than 2,500 square feet, it will usually be identified as an Anytime Fitness Express center.
- The franchisor also offers to qualified people, the right to develop multiple Anytime Fitness franchises within a specific territory under the terms of an Area Development Agreement.
Financial Assistance: When the initial franchise fee is $19,999 (and $15,999 for Veterans), the franchisor will offer to finance that fee by allowing the franchisee to pay it in two installments. However, when the franchisee pays it in installments, he or she will be paying more than if he or she paid the fee in full when he or she signs the Franchise Agreement. The franchisor does not generally offer, directly or indirectly, any financing to the franchisee. They also do not have any written agreements with any lender to provide financing. However, Anytime Fitness has an arrangement with a number of third-party equipment lenders who provide financing to franchisees. In addition, Provision, an affiliate, may offer to finance all of the electronics for the franchisee’s center, including cameras, security systems, and computers, based on credit approvals.
Training and Assistance: The franchisor provides an initial training program to educate and acquaint the new management team with the business of operating an Anytime Fitness center. The franchisee is expected to attend this training program at least 60 days before the opening of the Anytime Fitness Center. All of the initial training will be classroom based, but the franchisee will have an option to receive additional training by working in one of the Anytime Fitness Centers for up to two days. Training is located at office headquarters in Minnesota.
Territory: The franchisee is granted an exclusive territory. The territory will range from approximately one-half mile from the center (in densely populated metropolitan areas) to as much as five miles (in small towns). The criteria used for determining the boundaries of the territory include density of population, growth trends of population, apparent degree of affluence of population, the density of residential and business entities, traffic generators, driving time, and natural boundaries. The Anytime Fitness center may be located at any place within the given territory, so long as the site selected is not also within the territory of another Anytime Fitness center. Territories may overlap, but it will not be approved to place anyone opening an Anytime Fitness center, or relocating an Anytime Fitness center, into a territory given to another Anytime Fitness Center.
Term of Agreement and Renewal: The initial term is six years, except in California and Georgia, where the initial term is 10 years. If the franchisee is in good standing, they can renew the Franchise Agreement for an additional five-year period. Franchisees cannot renew the Area Development Agreement.
Obligations and Restrictions: While it is not required that the franchisee personally supervises the Anytime Fitness center, it is recommended that they do so. If the franchisee is not the "on premise" supervisor of the business, a Principal Operator must be designated to serve as the on premises supervisor. The Principal Operator must complete the initial training requirements and all other training designated.
Total Number of Units: More than 1,500 units open worldwide.
Investment Tables:
Initial Investment:
Initial Investment for a Regular Anytime Fitness Center
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise/ Development Fee | $11,999 | $21,999 |
| Travel and Living Expenses While Training | $500 | $2,300 |
| Real Estate and Improvements | $10,000 | $134,000 |
| Fitness Equipment | $1,500 | $37,500 |
| Tanning Equipment | $0 | $1,800 |
| Security System | $0 | $2,400 |
| First Aid Equipment | $0 | $1,600 |
| Interior Signs | $775 | $975 |
| Outside Signs | $2,000 | $9,500 |
| Miscellaneous - Opening Costs | $3,000 | $16,000 |
| Grand Opening Advertising | $2,000 | $6,000 |
| Insurance | $1,800 | $5,000 |
| Supplies | $1,000 | $6,000 |
| Legal and Accounting Expenses | $500 | $4,500 |
| Additional Funds - 3 months | $8,000 | $50,000 |
| Total | $44,074 | $300,074 |
Ongoing Fees:
| Name of Fee | Amount |
|---|---|
| Monthly Fee | $449 per month |
| General Advertising Fee | No more than the greater of $150 per month or 1% of the monthly revenues for general marketing. |
| Local Marketing Fund | No more than the greater of $150 per month or 1% of the monthly revenues for general marketing. |
| Anytime Health Membership Fees | $0.50 per month per current member ($1 per month for couples or family memberships). |
| Website Maintenance Fee | Currently $19.99 per month |
| Access Control Software Support and Security Monitoring | Generally, $89 per month |
| Inspection Fee | Generally $50-$100 |
| Renewal Fee | $500 |
| Transfer Fee | $2,500 - $9,999 |
| Liquidated Damages | $10,000 |
| Insurance Handling Fees | Currently $100 |
| Costs and Attorneys' Fees | Will vary under circumstances. |
| Interest | The lesser of 1.5% per month or the maximum rate allowable by applicable law. |
| Indemnification | Will vary under circumstances. |
Date of FDD: 2010
The above information has been ompiled from the FDD of Anytime Fitness Inc. along with online sources.
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