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Earnings Claims of Top Franchises Revealed

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FDD Talk: Average Monthly Sales Revenue and Gross Profit for Max Muscle Stores (2013 FDD)

by Franchise Chatter on March 5, 2014

in Franchise Earnings, Retail Franchise, Sports Nutrition Franchise



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Highlights of Max Muscle’s Item 19 Financial Performance Representations (2013 FDD)

  • The figures below represent a comparison of average monthly sales revenue generated on the sale of Max Muscle Products, Distributed Products, and Authorized Third-Party Products, and the high and low gross profit margins earned on the sale of Max Muscle branded supplements and nutraceutical branded products made by the 108 franchised Max Muscle Stores that satisfied the franchisor’s reporting criteria during the period between October 1, 2012 and September 30, 2013.
  • Max Muscle Franchise Photo by ACME-NollmeyerGross Profit Margin is calculated by taking the Max Muscle Store selling price for each Max Muscle branded supplement and nutraceutical branded supplement as suggested by the franchisor and deducting the Store Distributor Price paid for such Max Muscle branded supplements and athletic nutraceutical branded supplements by the franchisees (before discounts and other adjustments).
  • The financial performance figures do not reflect all the costs of sales, operating expenses, or other costs or expenses that must be deducted from gross revenue or gross sales figures to obtain your net income or profit.
  • As of September 30, 2013, the franchisor had 143 Max Muscle Stores operating in the Max Muscle System. Of the total number of Max Muscle Stores operating, 108 or 76% of Max Muscle Stores met or exceeded all of the following criteria (“Reporting Criteria”):
  • (i) each Max Muscle Store was operated under a Standard Franchise Agreement;
  • (ii) had been open and operating for at least one full twelve month period by September 30, 2012;
  • (iii) was open for all twelve months from October 1, 2012 through September 30, 2013;
  • (iv) submitted required royalty reports; and
  • (v) had operated continuously during the period between January 1, 2013 and September 30, 2013.
  • The results of the remaining 35 Max Muscle Stores did not satisfy one or more of the Reporting Criteria. Data from all Max Muscle Stores that satisfied the Reporting Criteria are included in this table.

Explanatory Notes for Part 1 – Average Monthly Sales Comparison for the Year Ended September 30, 2013

  • The average monthly sales revenue information was prepared from the sales records and reports, as generated by the Max Muscle Register System, on the total monthly Gross Revenues earned by each Max Muscle Store and reported by managers or owners of each of the 108 Max Muscle Stores satisfying the Reporting Criteria. These average monthly sales revenues have not been audited and the franchisor has not independently verified these average monthly sales numbers.
  • The average monthly sales revenue information represents aggregate sales of Max Muscle Products, Distributed Products, and Authorized Third-Party Products, as reported by the Max Muscle Register System, by 108 Max Muscle Stores satisfying the Year Over Year Reporting Criteria which were owned and operated by franchisees during the nine month period between January 1, 2013 and September 30, 2013, and should not be considered the actual or probable average monthly sales revenue of Max Muscle Products, Distributed Products, or Authorized Third-Party Products that will be achieved by any individual franchisee.
  • A franchisee’s average monthly sales revenues are likely to be lower in the first year of business.

Explanatory Notes for Part 2 – High and Low Gross Profit Margin

  • The Gross Profit Margin information represents the high and low Gross Profit Margins earned on the sale of Max Muscle branded supplements and nutraceutical branded supplements as reported by the Max Muscle Register System, by 108 Max Muscle Stores which satisfied the Reporting Criteria and were owned and operated by franchisees during the nine month period between January 1, 2013 and September 30, 2013, and should not be considered the actual or probable Gross Profit Margins that will be achieved by any individual franchisee.
  • A franchisee’s Gross Profit Margins are likely to be lower in the first year as the result of sales promotions designed to generate customer traffic for the Max Muscle Store.

Explanatory Notes for Part 3 – Average Purchase

  • To calculate the Average Purchase, the franchisor analyzed 254,716 transactions from Max Muscle Stores, valued at $18,659,796. The Average Purchase information represents aggregate sales of Max Muscle Products and Authorized Third-Party Products, as reported by the Max Muscle Register System, by 108 Max Muscle Stores satisfying the Reporting Criteria which were owned and operated by franchisees during the nine month period between January 1, 2013 and September 30, 2013.

Part 1 – Average Monthly Sales Comparison for the Year Ended September 30, 2013

Top Tier (36 Max Muscle Stores)



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