Anytime Fitness FDD Item 19 is the section of the Franchise Disclosure Document that contains financial performance representations, the closest thing to an earnings projection that a franchisor is permitted to provide under the FTC Franchise Rule. For prospective franchisees evaluating the Anytime Fitness opportunity, Item 19 is where the investment thesis meets real-world data. At Lopes Law LLC, we consider Item 19 the single most important section for prospective franchisees to understand, because it provides the foundation for calculating whether the $222,744 to $521,437 total investment will generate a viable return.

Anytime Fitness, owned by Self Esteem Brands (parent of Waxing the City and Basecamp Fitness), is the world’s largest gym franchise with over 5,000 locations worldwide. The brand’s financial performance data reflects the results of a mature franchise system with locations spanning urban centers, suburban markets, and rural communities. But the averages and medians disclosed in Item 19 mask a wide range of individual location performance, and understanding how to interpret that data is critical to making a sound investment decision.

What Is FDD Item 19 and Why Does It Matter?

Item 19 of any Franchise Disclosure Document is titled “Financial Performance Representations.” Under the FTC Franchise Rule (16 C.F.R. Part 436), franchisors are not required to include an Item 19 disclosure. It is optional. However, if a franchisor chooses to make any financial performance representations, they must be included in Item 19, they must have a reasonable basis, and the basis must be disclosed.

Anytime Fitness includes an Item 19 in its FDD, which is a positive sign. Many franchise systems choose not to disclose financial performance data, which leaves prospective franchisees with no official data on which to base their investment analysis. When a franchisor does include Item 19 data, it provides a starting point for financial modeling, but it requires careful interpretation.

The data in Item 19 is not a guarantee of future performance. It is historical data from existing locations, subject to survivorship bias (closed locations are not included), geographic variation (a Manhattan gym performs differently than one in rural Iowa), and timing differences (new locations perform differently than ones that have been open for 10 years).

How Should You Interpret Anytime Fitness Item 19 Revenue Data?

The most common mistake prospective franchisees make with Item 19 data is treating the average revenue as their expected outcome. Averages can be misleading, particularly in franchise systems with a wide performance distribution. A system with one location earning $500,000 and another earning $200,000 has an average of $350,000, but neither location is near the average.

Here is what to focus on when analyzing the Item 19 data:

• Median versus average: The median is the midpoint where half of locations perform above and half below. In most franchise systems, the median is lower than the average because a few high-performing outliers pull the average upward. If the FDD provides both figures, the median gives a more realistic picture of typical performance.
• Distribution data: Look for information about what percentage of locations meet or exceed the stated average. In many franchise systems, less than 40% of locations achieve the average, meaning the majority of franchisees perform below it.
• Segmentation: Does the data separate new locations from mature ones? A 10-year-old gym with 2,000 members will perform very differently from a gym that opened 6 months ago. If the data is not segmented, the numbers may overrepresent mature location performance.
• Sample size and scope: How many locations are included in the data? Are closed locations excluded? If the data only includes locations that were open for the full reporting year, it may exclude locations that closed during that period, creating survivorship bias.

What Does Item 19 Tell You About Anytime Fitness Profitability?

Item 19 typically discloses revenue, not profit. This is a critical distinction. Revenue is what comes in through membership dues and ancillary income. Profit is what remains after paying all expenses, including rent, utilities, equipment costs, staffing, insurance, technology fees, the $799 monthly royalty, advertising contributions, and debt service on any loans used to fund the initial investment.

To convert Item 19 revenue data into a profitability estimate, you need to model the full operating cost structure. For an Anytime Fitness location, the major cost categories include:

Expense Category	Typical Range (% of Revenue)	Notes
Rent / Occupancy	15% – 25%	Largest single expense; varies by market
Payroll / Staffing	15% – 25%	Lower than full-service gyms due to 24/7 model
Royalty (flat)	$799/month (~2-5%)	Effective % depends on revenue level
Advertising / Marketing	3% – 5%	National fund + local requirements
Technology / Access System	2% – 4%	Key fob system, software, licensing
Utilities	4% – 8%	24/7 operation = higher utility costs
Insurance	2% – 4%	General liability, property, workers’ comp
Equipment / Maintenance	3% – 6%	Ongoing replacement and repair
Debt Service	Varies	If financed, SBA or conventional loan payments

When you total these expenses, an Anytime Fitness location with typical costs will spend 50% to 70% of revenue on operating expenses before the owner takes any income. This means a location generating $350,000 in annual revenue might produce owner income of $100,000 to $175,000 before taxes. A location generating $200,000 in revenue might produce owner income of $40,000 to $80,000, which on a total investment of $222,744 to $521,437 represents a modest return.

How Does the 19.4% SBA Default Rate Relate to Item 19 Data?

SBA loan data shows 17 Anytime Fitness loan defaults at a 19.4% failure rate. This is a critical data point that should be evaluated alongside Item 19 financial performance data, because it provides an independent measure of franchise viability that is not subject to the same survivorship bias as Item 19 data.

A 19.4% default rate means that approximately 1 in 5 Anytime Fitness franchisees who received SBA loans defaulted on those loans. Loan defaults typically occur when the business cannot generate sufficient revenue to cover operating expenses and debt service, which is exactly the scenario that Item 19 data, properly interpreted, should help you avoid.

For comparison, Dickey’s Barbecue Pit recorded 27 SBA loan defaults, and Patrice & Associates showed a 31% failure rate. Every franchise system has some failure rate, but the Anytime Fitness 19.4% rate means the risk is real and should be factored into your financial modeling. If Item 19 data shows that a significant percentage of locations generate revenue below the level needed to cover expenses and debt service, the default rate data confirms that concern with real-world outcomes.

How Does the Flat Royalty Affect Financial Performance Analysis?

The flat $799 monthly royalty creates a unique dynamic in the financial performance analysis. In a percentage-based royalty system, the royalty expense scales with revenue. A 5% royalty on $300,000 is $15,000; on $500,000 it is $25,000. The expense is proportional, which means the royalty does not disproportionately affect low-revenue locations.

With the flat fee, the $9,588 annual royalty ($799 x 12) is the same whether the location generates $200,000 or $500,000 in revenue. This means the royalty expense is a smaller percentage of revenue for high-performing locations and a larger percentage for low-performing ones. When interpreting Item 19 data, this dynamic must be factored in. A location in the bottom quartile of revenue performance is paying a higher effective royalty rate than a location in the top quartile, which amplifies the margin pressure on underperforming locations.

What Questions Should You Ask About Item 19 Data?

When reviewing Anytime Fitness Item 19 with your franchise attorney, ask these questions:

• What is the median revenue, not just the average? This gives a more realistic picture of typical performance.
• What percentage of locations achieved the average? If less than 50% met the average, most franchisees are underperforming relative to the stated figure.
• Are closed locations included? If not, the data suffers from survivorship bias and overestimates typical performance.
• Is the data segmented by age of location? New locations perform differently from mature ones, and combining them in one dataset can be misleading.
• What are the top-line revenue drivers? Is revenue primarily from membership dues, or does it include personal training, merchandise, and other ancillary revenue that may require additional investment?
• How does the data compare to SBA default rates? If Item 19 shows strong performance but the default rate is high, there is likely a disconnect that needs investigation.

For current franchisees who are underperforming relative to Item 19 benchmarks, a franchise exit audit can help evaluate your options including transfer, non-renewal, or negotiated exit.

Why Legal Review of Item 19 Is Essential

Item 19 data provides the foundation for the most important calculation in any franchise investment decision: the projected return on investment. But the data requires expert interpretation to be useful. At Lopes Law LLC, we review Anytime Fitness Item 19 data in the context of the complete FDD, including Item 6 fees, Item 7 investment costs, Item 8 sourcing restrictions, Item 12 territory protections, and Item 17 renewal and exit terms.

Our flat-fee FDD validation review is $3,000 and covers all 23 items of the FDD. For an investment of $222,744 to $521,437, the legal review cost is less than 1.5% of the total investment and provides the financial clarity needed to make a sound decision.

Frequently Asked Questions About Anytime Fitness FDD Item 19

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Last updated: March 11, 2026