Anytime Fitness FDD Item 17 is the section of the Franchise Disclosure Document that governs what happens at the three most critical junctures of the franchise relationship: renewal (what happens when the initial term expires), termination (what gives the franchisor the right to end the relationship early), and transfer (what happens when you want to sell or assign the franchise). At Lopes Law LLC, we consider Item 17 one of the most important sections of any FDD, because it defines the franchisee’s exit options and sets the terms under which those options can be exercised.

Anytime Fitness, owned by Self Esteem Brands and operating over 5,000 locations worldwide, has a franchise agreement that covers a defined initial term. When that term expires, the renewal conditions, the transfer restrictions, and the post-termination obligations determine whether the franchisee can continue operating, sell the business at a fair price, or walk away with reasonable terms. SBA loan data shows 17 Anytime Fitness loan defaults at a 19.4% failure rate, and for franchisees who find themselves in financial difficulty, understanding the termination and transfer provisions is often the difference between an orderly exit and a catastrophic loss.

What Are the Renewal Terms for an Anytime Fitness Franchise?

The renewal provisions determine whether you can continue operating the franchise after the initial term expires. Renewal is not automatic and not guaranteed. The Anytime Fitness franchise agreement typically requires the franchisee to meet several conditions for renewal:

• Good standing: The franchisee must be in compliance with all terms of the current franchise agreement, with no outstanding defaults or uncured breaches.
• Then-current agreement: The franchisee must sign the then-current version of the franchise agreement, which may contain different terms, different fees, and different obligations than the original agreement. This is a critical point: the deal you signed initially may not be the deal you get at renewal.
• Renewal fee: A renewal fee is typically required, the amount of which is disclosed in the FDD.
• Facility upgrades: The franchisor may require facility renovations, equipment updates, or technology upgrades as a condition of renewal. These costs are borne by the franchisee.
• Advance notice: The franchisee must typically provide advance written notice of intent to renew within a specified window before the expiration date.

The requirement to sign the then-current franchise agreement is particularly significant. If Anytime Fitness has increased its fees, reduced territory protections, or added new obligations in the years since you signed the original agreement, the renewed agreement will reflect those changes. You do not have the right to renew under the original terms unless the franchise agreement specifically provides for that, which is uncommon.

What Can Trigger Termination of an Anytime Fitness Franchise?

The termination provisions define the circumstances under which Anytime Fitness can end the franchise relationship before the term expires. These fall into two categories: defaults that are curable (the franchisee gets a chance to fix the problem) and defaults that trigger immediate termination (no cure period).

Curable Defaults

Curable defaults typically include failure to pay fees within a specified period, failure to maintain operational standards, failure to submit required reports, and similar breaches that can be remedied. The franchisee is given a cure period, usually 30 to 60 days, to correct the default. If the default is cured within the specified period, the franchise agreement continues.

However, repeated curable defaults can themselves become grounds for termination. Many franchise agreements include a provision that allows the franchisor to terminate the agreement if the franchisee commits a specified number of defaults within a defined period, even if each individual default was cured within the cure period. This means that a pattern of late fee payments, even if each payment is eventually made, can accumulate into grounds for termination.

Non-Curable Defaults (Immediate Termination)

Non-curable defaults typically include bankruptcy or insolvency of the franchisee, felony conviction, unauthorized transfer of the franchise, material misrepresentation in the franchise application, abandonment of the business, and certain health or safety violations. These defaults trigger immediate termination without an opportunity to cure.

The distinction between curable and non-curable defaults is critical for franchisees to understand. A franchisee who falls behind on royalty payments may have 30 days to catch up. A franchisee who files for bankruptcy protection may lose the franchise immediately. Understanding these triggers before you sign the agreement allows you to plan for contingencies and avoid inadvertent defaults.

Can You Sell or Transfer Your Anytime Fitness Franchise?

Yes, but the transfer is subject to the franchisor’s approval and significant conditions. Anytime Fitness, like virtually all franchise systems, restricts the franchisee’s ability to transfer the franchise without prior written consent from the franchisor. The typical conditions for transfer include:

• Franchisor approval: The buyer must meet Anytime Fitness’s financial qualifications, operational standards, and any other criteria the franchisor applies to new franchisees.
• Transfer fee: A transfer fee must be paid, as disclosed in the FDD.
• Training: The buyer must complete the required training program.
• General release: The seller is typically required to sign a general release of all claims against the franchisor as a condition of the transfer.
• Right of first refusal: Anytime Fitness may have the right to purchase the franchise on the same terms offered by the third-party buyer. If the franchisor exercises this right, you cannot sell to your chosen buyer.
• Facility upgrades: The franchisor may require the buyer to commit to facility upgrades as a condition of transfer approval.

The right of first refusal is particularly consequential. It gives the franchisor the option to match any third-party offer and purchase the franchise itself. This can discourage potential buyers who do not want to invest the time and expense of negotiating a deal that the franchisor may ultimately override. It can also depress the sale price, because buyers know they are competing with the franchisor’s option to match.

If you are currently an Anytime Fitness franchisee considering your options, a franchise exit audit can help you understand the transfer process, evaluate the likely sale price, and identify any obstacles to a successful transfer.

What Are the Post-Termination Obligations?

After the franchise agreement terminates or expires without renewal, the former franchisee faces several obligations that can significantly affect their ability to continue operating any business at the same location:

• De-identification: The former franchisee must remove all Anytime Fitness branding, signage, and trade dress from the facility. This includes returning the proprietary key fob access system to the franchisor. The de-identification must typically be completed within a short timeframe (often 30 days or less).
• Non-compete covenant: The franchise agreement typically includes a post-termination non-compete provision that restricts the former franchisee from operating a competing business (such as another gym or fitness center) within a defined geographic area for a defined period (often 1 to 2 years). The enforceability of non-compete covenants varies by state, but they can effectively prevent a former franchisee from opening an independent gym at the same location.
• Payment of outstanding obligations: All outstanding fees, royalties, and other financial obligations must be paid in full upon termination.
• Return of proprietary materials: All confidential information, operations manuals, software, and proprietary systems must be returned to the franchisor.

The combination of de-identification requirements and non-compete covenants means that a terminated franchisee may lose both the brand and the ability to operate a gym at the same location. The leasehold improvements and equipment remain, but without the brand and the member base (which is tied to the Anytime Fitness system), the remaining assets may have limited value.

How Do Anytime Fitness Termination Provisions Compare to Industry Standards?

The termination provisions in the Anytime Fitness franchise agreement are broadly consistent with franchise industry standards, but every system has specific nuances that matter. Franchise systems like Dickey’s Barbecue Pit (27 SBA loan defaults) and Patrice & Associates (31% failure rate) have similar termination frameworks, but the specific cure periods, the definition of curable versus non-curable defaults, and the post-termination obligations vary.

What distinguishes Anytime Fitness is the key fob access system. Upon termination, the franchisee must return this system, which means the gym cannot operate as a 24/7 access facility without it. This gives the franchisor significant practical leverage in any termination scenario, because without the access system, the gym’s core value proposition to members disappears.

What Should Prospective Anytime Fitness Franchisees Review in Item 17?

When reviewing Anytime Fitness FDD Item 17, focus on these specific areas:

• Renewal conditions: Determine whether the renewal requires signing the then-current franchise agreement and what protections (if any) exist against materially adverse changes to the terms.
• Cure periods: Identify the cure periods for each type of default and whether repeated cured defaults can accumulate into grounds for termination.
• Transfer approval criteria: Understand the specific criteria the franchisor applies to buyer approval and whether those criteria are objective (financial thresholds) or subjective (franchisor discretion).
• Right of first refusal: Determine whether the franchisor has a right of first refusal and how it operates in practice.
• Non-compete scope: Evaluate the geographic scope, duration, and breadth of the post-termination non-compete covenant. Understand how it would affect your ability to operate any business at the same location.
• General release requirement: Understand whether the franchisee must sign a general release of all claims against the franchisor as a condition of renewal or transfer, and what rights are being waived.

Why Legal Review of Item 17 Is Essential

Item 17 defines the terms of your exit from the franchise, whether that exit is voluntary (sale, transfer, non-renewal) or involuntary (termination for default). Understanding these provisions before you sign the initial agreement is essential because you cannot negotiate better exit terms after you are already locked in.

At Lopes Law LLC, we review Anytime Fitness renewal, termination, and transfer provisions with the same level of scrutiny we apply to the fee structure and territory provisions. Our flat-fee FDD validation review is $3,000 and covers all 23 items of the FDD. The investment in legal review is a fraction of the total $222,744 to $521,437 investment at stake.

Frequently Asked Questions About Anytime Fitness FDD Item 17

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Last updated: March 11, 2026