Anytime Fitness Franchise Cost & Fees

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Description

Year Business Began: 2002Franchising Since: 2002Headquarters: Woodbury, Minnesota Estimated Number of Units: 4,010Franchise Description: The franchisor is Anytime Fitness, LLC. The franchise system consists of boutique fitness centers with the potential for minimal overhead. 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. Two types of franchise agreements are offered:The franchisee is granted the right to operate one Anytime Fitness center at a location specified by the franchisor in the Franchise Agreement. The center will be an Anytime Fitness center unless the franchisor designates it as an Anytime Fitness Express center. Generally, an Anytime Fitness Express center will be a center located in an area having fewer than 7,000 people living within a 3 mile radius of the center. Anytime Fitness centers will typically have 4,000 to 6,000 square feet, while Anytime Fitness Express centers will typically have 1,500 to 4,000 square feet.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.Training Overview: The franchisor will provide a training program held over the course of 2 weeks that will generally last 10 business days. The franchisor will not require franchisees to attend each training week consecutively; however they will be expected to attend the first half (generally 5 days) of the training program within 90 days of signing the Franchise Agreement. Franchisees will be expected to attend the second half (generally 5 days) of the training program before opening the Anytime Fitness center. The Principal Operator of the business must attend and complete training to the franchisor’s satisfaction before the franchisee opens the Anytime Fitness center. In addition, if the Principal Operator is not also a Principal Owner, then a Principal Owner of the business must also attend and complete the training to the franchisor’s satisfaction before the Anytime Fitness center is opened. During the time franchisees operate their business, they are required to attend additional training, which may be offered in person or online, in order to stay current on the policies, procedures, and techniques of operating an Anytime Fitness center. The franchisor requires a Principal Owner to attend the annual conference. Territory Granted: Once the location for the Anytime Fitness center has been approved, the franchisor will give franchisees a protected territory. The territory will range from approximately one-half mile from the center (in densely populated metropolitan areas) to as much as 5 miles (in small towns). Franchisees may locate their Anytime Fitness center at any site the franchisor approves within that territory, so long as the site selected is not also within the territory of another Anytime Fitness center. Protected territories may overlap, but the franchisor will not approve anyone opening an Anytime Fitness center, or relocating an Anytime Fitness center, into a protected territory given to another Anytime Fitness center.Obligations and Restrictions: While it is not required that franchisees personally supervise their Anytime Fitness center, the franchisor recommends 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 of the business must complete initial training requirements and all other training reasonably designated, and that person must sign a confidentiality agreement with the franchisee that meets the franchisor’s requirements and that the franchisee provides to Anytime Fitness before they attend training. Franchisees may offer only those products and services that are approved, and must offer all products and services that are designated as required for all franchisees. Each calendar year, the business must obtain at least 1,200 continuing engagement credits within the system.Term of Agreement and Renewal: The initial term is 6 years, except in California, where the initial term is 10 years. If franchisees are in good standing, they can renew the Franchise Agreement for an additional 5-year period. An Area Development franchise term is typically between 1 and 4 years. Franchisees cannot renew the Area Development Agreement.Financial Assistance: The franchisor does not generally offer, directly or indirectly, any other financing to help franchisees establish their business. However, the franchisor does have arrangements with a number of third-party equipment lenders who provide financing to its franchisees. If the franchisee wants the franchisor to assist in obtaining financing, a separate Financing Consulting Agreement must be signed. The franchisor will discuss the various financing products and services that are available, and assist in preparing applications for financing with the lenders with whom it has established relationships. The franchisor does not have a written agreement with any lender to provide financing to franchisees. The franchisor also a direct bridge financing program that it offers to qualifying franchisees to help finance tenant improvements. The franchisor does not guarantee any note, lease or other obligation franchisees incur. Investment Tables: Estimated Initial Investment Name of Fee Low High Initial Franchise/ Development Fee $14,000 $42,500 Travel and Living Expenses While Training $3,080 $3,580 Real Estate and Improvements $7,375 $333,000 Architect/Design Fees$3,500$9,500 Fitness Equipment $2,414 $139,100 Tanning Equipment $0 $9,000 Hydro-massage Equipment $0 $16,995 Global Access System Equipment $373 $32,000 First Aid Equipment $1,000 $1,400 Interior Signs $75 $5,326 Outside Signs $199 $10,000 Miscellaneous – Opening Costs $1,575 $2,504 Pre-Sale/Grand Opening Advertising $8,000 $23,000 Insurance $2,200 $2,750 Supplies and Furniture $3,000 $5,900 Legal and Accounting Expenses $500 $4,500 Training Suite $0 $7,885 Club Management $537 $537 Additional Funds – 3 months $59,445 $73,069 Estimated Total $107,524 $722,796 Other Fees Type of Fee Amount Monthly Fee $549 per month for an Anytime Fitness center and $449 per month for an Anytime Fitness Express center. General Advertising Fee Currently, $300 per month. Grand Opening and Ramp Up Program $8,000 to $18,000 for an Anytime Fitness center; no minimum for an Anytime Fitness Express center Anytime Health Membership Fees $0.50 per month per current member, subject to a maximum of $225 per month and $675 per franchisee for those with multiple centers. Global Access Fee Currently $249 per month. Construction Document Review Fee $2,700 Training Suite Fees Currently:1-3 centers: $149 per center4-9 centers: $109 per center10+ centers: $109 per centerfor the first 9 centers, and $0for each additional center thereafterThe franchisor reserves the right to periodically increase this fee; however the franchisor will not increase this fee to more than $300 per center per month. Training Suite Registration Fee $500 for up to two individuals to attend the training program;Additional individuals may attend for an additional fee of $250 per person. On-Site Training Suite Registration Fee$5,000 for one owner, with up to a total of 21 attendees.$7,000 for two owners, with up to a total of 21 attendees.$7,500 for three owners, with up to a total of 21 attendees. Healthy Contributions Reimbursement Program – Initial Fees Currently, no cost for set-up of the first Reimbursement Program, and $20 for each additional Reimbursement Program. Also, currently, $1.50 initial member fee for each member the franchisee enrolls on the Healthy Contributions website, and $3 for each member enrolled by Healthy Contributions. Healthy Contributions Reimbursement Program – Ongoing Fees Currently $5 per Reimbursement Program per month, and a transaction fee of $.15 per reimbursement if sent directly to the member or to the franchisee and $.30 if the franchisee applies it to the member’s fees. Charitable Contribution $100 per month. Inspection Fee Generally $50-$100 Peer Compliance Default Fee Up to $1,000 per violation. Standard Default Fee Up to $250 per violation. Additional Assistance Currently, $500 per day plus travel costs. Marketing Materials Variable, but currently at the franchisor’s cost plus shipping. Annual Conference Fee Currently, $439 for early registration increasing to $659 at the Conference. Participation Fee Up to $1,200 for each year the franchisee fails to complete 1,200 continuing education credits (CEC), as outlined in the Operations Manual. Customer Service Webinar Currently, $250 Renewal Fee $4,500, reduced to $4,000 if the franchisor receives the fee, and all the franchisee’s signed renewal documents, at least 30 days before the franchise expires. Transfer Fee $7,500 – $12,000 Relocation Fee $1,500 Liquidated Damages $10,000 Insurance/Bond 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. Re-sale Assistance Program $549, plus $79 per month until the business is sold or the franchisee decides to terminate his or her participation in the program. The franchisee also pays a commission of up to 5% of the sale price, depending on the amount of the sale price. Lease Renegotiation Program 5% of any lease savings the franchisor achieves for the franchisee. Reinvention Program $500 per month. Additional Email Addresses $20 per month for each additional 5 email addresses and mailboxes. Digital Marketing ProgramCurrently, fees are $650, $800 or $1,100 per month for base packages, or $1,200 per month for custom package, plus an initial set up fee, currently, $300 or $350, depending on the package selected. A three-month initial commitment is required. The above information has been taken from the FDD of Anytime Fitness Inc. Year of FDD: 2018Franchise Direct’s Disclaimer

Other Fees
Type of Fee Amount
Monthly Fee $549 per month for an Anytime Fitness center and $449 per month for an Anytime Fitness Express center.
General Advertising Fee Currently, $300 per month.
Grand Opening and Ramp Up Program $8,000 to $18,000 for an Anytime Fitness center; no minimum for an Anytime Fitness Express center
Anytime Health Membership Fees $0.50 per month per current member, subject to a maximum of $225 per month and $675 per franchisee for those with multiple centers.
Global Access Fee Currently $249 per month.
Construction Document Review Fee $2,700
Training 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 the franchisor will not increase this fee to more than $300 per center per month.

Training Suite Registration Fee $500 for up to two individuals to attend the training program;
Additional individuals may attend for an additional fee of $250 per person.
On-Site Training Suite Registration Fee $5,000 for one owner, with up to a total of 21 attendees.
$7,000 for two owners, with up to a total of 21 attendees.
$7,500 for three owners, with up to a total of 21 attendees.
Healthy Contributions Reimbursement Program – Initial Fees Currently, no cost for set-up of the first Reimbursement Program, and $20 for each additional Reimbursement Program. Also, currently, $1.50 initial member fee for each member the franchisee enrolls on the Healthy Contributions website, and $3 for each member enrolled by Healthy Contributions.
Healthy Contributions Reimbursement Program – Ongoing Fees Currently $5 per Reimbursement Program per month, and a transaction fee of $.15 per reimbursement if sent directly to the member or to the franchisee and $.30 if the franchisee applies it to the member’s fees.
Charitable Contribution $100 per month.
Inspection Fee Generally $50-$100
Peer Compliance Default Fee Up to $1,000 per violation.
Standard Default Fee Up to $250 per violation.
Additional Assistance Currently, $500 per day plus travel costs.
Marketing Materials Variable, but currently at the franchisor’s cost plus shipping.
Annual Conference Fee Currently, $439 for early registration increasing to $659 at the Conference.
Participation Fee Up to $1,200 for each year the franchisee fails to complete 1,200 continuing education credits (CEC), as outlined in the Operations Manual.
Customer Service Webinar Currently, $250
Renewal Fee $4,500, reduced to $4,000 if the franchisor receives the fee, and all the franchisee’s signed renewal documents, at least 30 days before the franchise expires.
Transfer Fee $7,500 – $12,000
Relocation Fee $1,500
Liquidated Damages $10,000
Insurance/Bond 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.
Re-sale Assistance Program $549, plus $79 per month until the business is sold or the franchisee decides to terminate his or her participation in the program. The franchisee also pays a commission of up to 5% of the sale price, depending on the amount of the sale price.
Lease Renegotiation Program 5% of any lease savings the franchisor achieves for the franchisee.
Reinvention Program $500 per month.
Additional Email Addresses $20 per month for each additional 5 email addresses and mailboxes.
Digital Marketing Program Currently, fees are $650, $800 or $1,100 per month for base packages, or $1,200 per month for custom package, plus an initial set up fee, currently, $300 or $350, depending on the package selected. A three-month initial commitment is required.