![]() ![]() 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. 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. ![]() However, we assumed the general contractor will include permitting fees in the construction costs. 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. Your actual cost will vary, depending on the distance to be traveled, your method of travel, and your personal circumstances. While we do not charge you for this training, you do have to pay your travel and living expenses while you attend the training. In addition, if your Principal Operator is not a Principal Owner, then a Principal Owner must also attend and complete this training to our satisfaction before you open your Anytime Fitness center. (3) The person you designate as the “Principal Operator” of your business must attend mandatory initial training in Woodbury, Minnesota or such other place we designate. The Initial Franchise Fee is described in Item 5. The high end of the range assumes you pay cash. The low end of the range assumes you finance the $42,500 initial franchise fee with an SBA loan. However, we charge other Initial Franchise Fees in certain specific circumstances. The Initial Franchise Fee for an Anytime Fitness Express franchise is generally $25,000. (2) The Initial Franchise Fee is generally $42,500 for an Anytime Fitness center franchise. Except where noted, the high estimate assumes you will pay cash. You may not qualify for an SBA loan and even if you do, you may be required to make a cash injection that is higher than 15%. The low end of the ranges provided all assume that you are financing these costs with a loan from the Small Business Administration (“SBA loan”) which generally requires a 15% cash injection from you. These figures are estimates based on our experience in establishing and operating Anytime Fitness centers in the last 3 years and reflect the anticipated initial costs based on a lease for a “vanilla shell” or “as is” space for the operation of a 5,289 square foot Anytime Fitness center. (1) None of these payments are refundable. This table relates to the estimated initial investment for a start-up fitness center. Pre-Sale/Grand Opening Advertising (Note 10) Technology Solutions (Equipment Package) (Note 6) Vendors (e.g., travel, hotel, restaurants) Travel and Living Expenses While Training (Note 3)
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