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MaxLiving Franchise ProfileFitness Franchises > Personal Training |
What is the Initial Investment Required for a MaxLiving Franchise?
To open a MaxLiving franchise, you should anticipate an initial investment ranging from $167,600 to $370,500. This includes a franchise fee of $30,000, with additional costs for equipment, leasehold improvements, and initial inventory. It’s essential to have cash reserves between $50,000 and $93,000 to cover startup expenses and ensure smooth operations during the early stages.
What Are the Ongoing Fees Associated with a MaxLiving Franchise?
MaxLiving franchisees are required to pay an 8% royalty fee on gross sales, along with a 1% marketing fee. These ongoing fees contribute to the support and resources provided by the franchisor, helping franchisees effectively market their services and maintain operational efficiency. Understanding these fees is crucial for budgeting and financial planning.
What Are the Financial Performance Metrics for MaxLiving Units?
MaxLiving franchises have shown promising financial performance, with an average annual revenue per unit of $640,756. The median revenue stands at $473,886, while the lowest recorded revenue is $200,164 and the highest reaches $1,360,993. This indicates a strong potential for profitability, especially with an average breakeven time of just 12 months.
What Support Does MaxLiving Offer to Franchisees?
MaxLiving provides comprehensive support to its franchisees, including training programs, marketing resources, and operational guidance. Franchisees benefit from a proven business model and ongoing assistance to navigate challenges and optimize their performance. This support is essential for both new and seasoned franchisees looking to succeed in the wellness industry.
MaxLiving 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:
MaxLiving Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2017 | 2018 | 2019 |
|---|---|---|---|
| Total Units | 89 | 84 | 84 |
| Net Change YoY | -5 | 0 | |
| Franchised Units | 89 | 84 | 84 |
| Net Change YoY | -5 | 0 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Investment Overview
The initial investment to open a MaxLiving franchise ranges from $167,600 to $370,500, with a franchise fee of $30,000. Prospective franchisees should be prepared with liquid cash of $50,000 to $93,000 and a net worth of $250,000 to $500,000 to meet the financial requirements of the franchise.
Revenue Potential
MaxLiving franchises generate significant revenue, with average annual earnings reported at $640,756. The median annual revenue stands at $473,886, while the lowest recorded revenue is $200,164 and the highest is an impressive $1,360,993, showcasing the potential for profitability in this franchise model.
Operational Fees
Franchisees are required to pay an 8% royalty fee on gross sales, along with a 1% marketing fee. These fees contribute to the overall operational costs, which include various expenses such as rent, insurance, and professional fees, impacting the net profitability of the franchise.
Breakeven and Payback
New franchisees can expect to reach breakeven within approximately 12 months of operation. Additionally, the investment payback period is also around 12 months, indicating a relatively quick return on investment for those who effectively manage their operations.
Franchise Growth
Since its inception, MaxLiving has shown a consistent franchising presence, with 89 franchised units in 2017, slightly declining to 84 units in both 2018 and 2019. This stability suggests a solid foundation for potential franchisees looking to join a well-established brand.
Financial Performance
The average profit and loss metrics for MaxLiving indicate a strong financial performance, with an EBITDA margin of 69.71%. Operating expenses account for 84.74% of revenue, demonstrating the importance of efficient management to maximize profitability within the franchise system.
Frequently Asked Questions
The initial investment for a MaxLiving franchise ranges from $167,600 to $370,500, which includes a franchise fee of $30,000.