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B60/100FDD 2024

Anytime Fitness — Litigation & Risk

Health & Fitness · FDD Items 3, 4 & 5

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Moderate — Review

3 cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
3
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
60 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID

7(a) FOIA data · FY2020–present

SBA Loan Performance

Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.

Total 7(a) loans
1,108
Government-backed loans issued
Default rate
11.7%
vs <3% typical · system-wide
5-yr default rate
2.0%
Defaults
94 loans
Loans charged off or defaulted
Total loan volume
$449.0M
Avg loan size
$405K
Participating lenders
249

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Minnesota
State whose law governs disputes — relevant if you're not based there

What drove the 60/100 rating

Risk Score Breakdown

  1. 01MINORSystem declining: -0.9% YoY unit contraction signals market saturation or franchisee struggles despite 2,310 locations
  2. 02HIGHLitigation exposure: Spain franchisee breach-of-duty lawsuit on appeal + affiliate regulatory actions (Illinois/New York) indicate FDD disclosure and compliance vulnerabilities
  3. 03MINORThin margins: $112,687 avg net income on $441,894 revenue (25.5% net margin) leaves minimal buffer for underperformance or unexpected costs
  4. 04MEDHigh initial investment relative to margins: $397k-$973k entry cost requires 3.5-8.6 years to recoup at avg net income, assuming zero growth/decline

Severity inferred from FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.