About The Max Challenge Franchise
The Max Challenge is a group fitness and nutrition franchise that combines structured workout programs with meal planning and motivational coaching to help members achieve lasting body transformations.
The brand operates in both traditional standalone studios and Express formats, offering a comprehensive approach to health and fitness.
The Max Challenge has been franchising since 2013 under Max Transformation Holdings, LLC.
The Max Challenge Franchise Cost & Fees
Minimum Investment
$151K
Average Investment
$250K
Maximum Investment
$349K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 (traditional stand-alone) or $15,000 (Express) | One-time payment upon signing |
| Royalty Fee | The Greater of 7% of gross revenues or the Monthly Minimum Royalty Fee of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of gross revenues or $200 per month, whichever is greater | National brand fund |
| Total Investment Range | $151,028 – $349,478 | Includes build-out, inventory, working capital |
The investment range of $151K–$349K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (The Greater of 7% of gross revenues or the Monthly Minimum Royalty Fee) and marketing fee (2% of gross revenues or $200 per month, whichever is greater) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $15,000 | $40,000 |
| Training Fee | $15,000 | $15,000 |
| Opening Advertising-Enrollment /First Three Months Local Advertising Expenditures | $11,000 | $27,000 |
| Computer Equipment | $6,000 | $7,500 |
| Pre-Registration Office | $0 | $5,000 |
| Grand Opening Package, MAXAccess Passes & MAX Protein Powder | $3,728 | $4,728 |
| Insurance | $500 | $2,000 |
| Signage | $2,000 | $18,000 |
| Equipment and Furnishings | $6,000 | $38,250 |
| Prepaid Rent and Security Deposit | $0 | $20,000 |
| Leasehold Improvements/Fit out | $0 | $115,000 |
| Utility Deposits | $0 | $2,000 |
| Licenses and Permits; Fictitious Name Registration and/or Incorporation and Legal Review | $500 | $5,000 |
| Initial Training; Travel, Lodging, Meals, etc. for Initial Training | $200 | $5,000 |
| Additional Funds | $3,000 | $45,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $20,000 |
| Renewal Fee | Then-current renewal fee, currently $20,000, non-refundable |
| Technology Fee | Currently $325 per month |
| Audit Fee | Cost of audit |
| Local Advertising Deficiency Fee | 5% of gross revenues per month or $2,000 per month, whichever is greater |
| Additional Initial Training Fee | $500 per person |
| Annual Mandatory Conferences & Continuing Education | Currently $0, but we reserve the right to charge you a fee equal to our costs plus fifteen percent (15%) |
| Optional Franchisee Support & Training | Our then-current rates; currently, ranging from $80/hour to $500/day depending on the nature of the services requested plus reimbursement of direct costs |
| Transfer Brokerage Fee | 20% of the sale price |
| Interest on Past Due Amounts | 12% per year or the highest amount allowed by applicable law, whichever is less |
| Costs and Attorneys Fees | Total amount of our costs and expenses |
| Alternative Supplier Request Fee | Currently $0; up to $500 plus all costs we incur |
| Trainer and Designated Manager Assistance Fee | Currently $2,500 for each request you submit to us |
| Indemnification | Total losses and expenses incurred by us and our affiliates |
| Bookkeeping fee | $325 per month |
| Mobile App Fee | Then-current fee; currently, $250 per month |
| Non-Compliance Fees | Up to $500 per incident |
| Taxes | You must reimburse us for any taxes, fees or assessments imposed on us for acting as franchisor or licensing the Marks. |
| Liquidated Damages | An amount equal to the aggregate Royalty Fees and Continuing Advertising Fees due to us during the 36 month period immediately preceding termination |
| Relocation/Franchisee Initiated Renovation Support & Approval Fee | $2,500 |
| Express Conversion Fee | $10,000 |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 40 hours |
| Classroom Training | 40 hours |
| On-the-Job Training | 5 hours |
| Training Location | Monmouth, Middlesex or Ocean, NJ, or as determined by us |
| Additional Training | If any required trainee fails to complete initial training to our satisfaction, we may require them to undergo additional training and you shall pay us $500 per person for each person we must retrain. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | A typical approved territory will cover an area that consists of a two (2) mile “driveable distance” from your approved site |
| Description | We will determine the size and boundaries of your Approved Territory based on factors including geographic area, population density, character of neighborhood, location and number of competing businesses, and other factors. The typical territory is a two-mile drivable distance from the approved site, determined using mapping services like GOOGLE®, MAPQUEST®, or YAHOO® maps. We may grant a territory of less than two miles based on demographics and other factors. You will operate from one approved location. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years from the Effective Date |
| Renewal Term | one (1) additional term of ten (10) years or for Your then-current lease term, whichever is shorter |
| Renewal Fee | $20,000 |
| Renewal Conditions | Good standing, timely written notice (6-12 months prior), sign then-current Franchise Agreement, pay renewal fee, remodel and modernize Center to current standards, and sign a general release. |
| Transfer Fee | $20,000 |
| Transfer Conditions | Proposed buyer meets franchisor's criteria, all outstanding debts paid, all defaults cured, buyer signs then-current franchise agreement (amended for operational business) and pays 50% of then-current Initial Franchise Fee plus training costs, buyer assumes liabilities/benefits of existing agreement, franchisee pays transfer fee and supplemental transfer fee, buyer completes initial training, Center modernized to current standards, and franchisee and transferee sign a general release. |
| Termination for Cause | Misuse of Trade Name/Marks/System, conduct reflecting unfavorably on goodwill, unauthorized use of names/marks/systems in advertising, direct/indirect interest in confusingly similar business, failure to provide Nondisclosure/Noncompetition Agreement, unauthorized assignment/transfer, material misrepresentations, acting without prior written approval, cessation of operations (unless by force majeure for >180 days), failure to permanently correct similar breach twice in 12 months, threat to public health/safety, insolvency/bankruptcy, felony conviction/moral turpitude crime, knowingly maintaining false books/records, failure to make payments when due (5 days notice), failure to submit timely information (30 days notice), failure to operate Center in accordance with agreement/manual (30 days notice), failure to offer required services/programs (30 days notice), default on any other obligation (30 days notice). |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term, you shall not directly or indirectly own, maintain, operate, engage in, consult with, provide assistance to, or have any interest in a Competitive Business. Post-term (2 years): no direct or indirect interest in a Competitive Business (a) at the Center location; (b) within 10 miles of current location; (c) within 10 miles of another System Center; or (d) within the state of New Jersey. Also, no involvement in any franchise system offering/selling rights to operate Competitive Businesses anywhere in the United States. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | We strongly recommend, but do not require, personal supervision. The fitness center must be directly supervised on site by a MAX Certified Designated Manager, who must be a full-time employee (minimum 30 hours/week) and have no interest in competing businesses. The Designated Manager and all employees must sign confidentiality and non-compete agreements. Principals of your entity must sign the Franchise Agreement and Personal Guaranty and Subordination Agreement, making them liable for financial obligations. Spouses may also be required to sign. |
| Required Suppliers | You must purchase protein powder, key tags, and the Grand Opening Package from us or our affiliate, EEP Distribution. We and/or EEP Distribution are currently the only approved suppliers for these items. |
| Supply Restrictions | We have the absolute right to limit the suppliers with whom you may deal. You must purchase all goods, items, products and services required for the development and operation of the Center from our approved or designated suppliers. We have the right to designate one supplier for any given item or service. We may become an approved supplier, and/or the only supplier, for any item, product, good and/or service in the future. |
| Franchisor Revenue from Suppliers | During the fiscal year ended December 31, 2021, we derived $264,474 (17% of total revenue) from required franchisee purchases. Our affiliate derived $279,086 from required franchisee purchases. Unaffiliated suppliers pay us rebates ranging from 5% to 25% of their revenue from franchisee purchases of certain items and services, and approximately 15% of each meal or snack ordered from our approved supplier of MAX Meals. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or obligation. |
The Max Challenge Franchise Earnings — Item 19
The Max Challenge does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
The Max Challenge does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
The Max Challenge Litigation & Risk Flags
1 Pending Action ListedReview the full FDD for details on pending litigation.
Bankruptcy History DisclosedA bankruptcy disclosure is present in this FDD.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
The Max Challenge System Growth
Total Units
49
Franchised
48
Company-Owned
1
The Max Challenge currently operates 48 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 9 | 4 | 70 |
| 2020 | 5 | 16 | 59 |
| 2021 | 2 | 13 | 48 |
Transfers: 11 | Closures: 33
State Registrations
Registered in 14 states: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, Wisconsin
Franchisor Financials (Item 21)
Revenue
$2.1M
Net Income
$484K
Total Assets
$781K
Audited by Citrin Cooperman & Company, LLP for year ending December 31.
The Max Challenge Franchise — FAQ
The total investment to open a The Max Challenge franchise ranges from $151,028 to $349,478, per their Franchise Disclosure Document. This includes the initial franchise fee of $40,000 (traditional stand-alone) or $15,000 (Express). The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
The Max Challenge charges a royalty fee of The Greater of 7% of gross revenues or the Monthly Minimum Royalty Fee of gross sales, plus a 2% of gross revenues or $200 per month, whichever is greater contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the The Max Challenge Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from The Max Challenge to ensure you have the most up-to-date version.
The Max Challenge does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
The Max Challenge has been franchising since 2013. The FDD shows an investment range of $151,028-$349,478, a The Greater of 7% of gross revenues or the Monthly Minimum Royalty Fee royalty, and no Item 19 earnings disclosure. There are 1 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $40,000 (traditional stand-alone) or $15,000 (Express) and the total investment ranges from $151,028 to $349,478 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from The Max Challenge and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with The Max Challenge or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com