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Max Muscle Franchise ProfileFitness Franchises > Gyms |
What is the Initial Investment for a Max Muscle Franchise?
To open a Max Muscle franchise, you should be prepared for a total initial investment ranging from $93,500 to $278,500. This includes a franchise fee of $35,000. Additionally, you will need to demonstrate cash reserves between $128,500 and $278,500, along with a net worth of $250,000 to $500,000. Understanding these financial requirements is crucial for aspiring franchisees looking to join the Max Muscle brand.
What are the Ongoing Fees Associated with a Max Muscle Franchise?
Max Muscle franchisees are required to pay a royalty fee of 6% on gross sales, along with a marketing fee of 2%. These ongoing fees are essential for maintaining brand presence and supporting local marketing efforts. It’s important to factor these into your financial planning to ensure sustainable profitability as you operate your franchise.
What is the Average Revenue Potential for a Max Muscle Franchise?
The average annual revenue per unit for a Max Muscle franchise is reported at $473,480, with a median annual revenue of $1,421,402. This wide range indicates significant earning potential, depending on location and management effectiveness. New franchisees should analyze these figures carefully to set realistic financial goals and expectations for their business.
How Long Does it Take to Break Even with a Max Muscle Franchise?
Franchisees can expect to break even within approximately 12 months of operation. The investment payback period is estimated at 24 months. These timelines can vary based on various factors, including market conditions and operational efficiency. Understanding these metrics is vital for managing cash flow and planning for the future of your franchise.
Max Muscle Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Max Muscle Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2016 | 2017 | 2018 |
|---|---|---|---|
| Total Units | 129 | 124 | 104 |
| Net Change YoY | -5 | -20 | |
| Franchised Units | 129 | 124 | 103 |
| Net Change YoY | -5 | -21 | |
| Corporate Units | 0 | 0 | 1 |
| Net Change YoY | 0 | 1 |
Investment Overview
The Max Muscle franchise offers a low initial investment range of $93,500 to $278,500, making it accessible for aspiring entrepreneurs. The initial franchise fee is set at $35,000, with ongoing royalty fees of 6% and a marketing fee of 2%. To secure a franchise, potential owners need a cash requirement between $128,500 and $278,500, along with a net worth of $250,000 to $500,000.
Financial Performance
Franchisees can expect an average annual revenue of $1,421,402, with a median revenue of $473,480. The lowest reported annual revenue per unit is $268,856, while the highest reaches $1,421,402. Notably, the breakeven period is approximately 12 months, allowing franchisees to recover their initial investment within two years.
Franchise Growth
Since its inception, Max Muscle has seen fluctuations in its franchised units. In 2016, there were 129 franchised units, which decreased to 124 in 2017 and further to 103 in 2018. The brand also operates one corporate unit as of 2018, indicating a cautious approach to expansion while maintaining franchisee support.
Operating Expenses
The average annual operating expenses for a Max Muscle franchise total $126,447. Key expenses include salaries and wages at $38,664, advertising costs of $16,716, and legal fees amounting to $21,611. Understanding these costs is crucial for potential franchisees to effectively manage their financial performance.
Profitability Insights
The average EBITDA for a Max Muscle franchise is reported at -$501,368, which reflects a challenging operating environment with expenses surpassing revenue. The operating expenses represent 135.3% of revenue, indicating that franchisees need to implement effective cost-control measures to enhance profitability.
Brand Mission
Max Muscle is dedicated to promoting health and fitness through high-quality nutritional products and supplements. The brand aims to empower individuals to achieve their fitness goals by providing expert guidance and superior products. This commitment to health and wellness resonates with a growing consumer base focused on fitness and lifestyle improvement.
Frequently Asked Questions
The initial investment for a Max Muscle franchise ranges from $93,500 to $278,500, which includes a franchise fee of $35,000.