Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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Franchise Costs: Detailed Estimates of Max Muscle Franchise Costs (2017 FDD)

by Franchise Chatter on April 1, 2016

in Franchise Costs, Retail Franchise, Sports Nutrition Franchise

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Max Muscle Photo from PRWeb

This post was updated on March 28, 2017 to reflect information from Max Muscle’s 2017 FDD (Item 7).

Detailed Estimates of Max Muscle Franchise Costs Based on Item 7 (Estimated Initial Investment) of Max Muscle’s 2017 Franchise Disclosure Document

  • The low and high ranges in the table for Max Muscle Stores are based on the minimum size Max Muscle Store, which is generally 900 square feet of retail space (including restrooms), and the maximum size Max Muscle Store, which is 1,200 square feet of retail space (including restrooms).

1.  Single Unit Initial Franchise Fee:  $35,000

  • The Initial Franchise Fee is due when you sign the Franchise Agreement and is non-refundable once paid.

2.  Real Estate Leasing:  $5,000 to $18,000

  • Generally, the lease will require that you pay first and last months’ rent, plus a security deposit, at the time you sign the lease.
  • Max Muscle Stores are typically located in regional malls and large strip centers.
  • Unless approved in writing by the franchisor, a Max Muscle Store must include a minimum of 900 square feet of retail space (including restrooms) and a maximum of 1,200 square feet of retail space (including restrooms). If you require an office or storage room, you will need to lease additional space.

3.  Store Construction to FFE Ready Condition:  $6,000 to $42,500

4.  Design, Fixtures, Furniture, Equipment, and Installation:  $30,500 to $85,500

  • You should investigate all of the costs in the area where you wish to establish your Max Muscle Store and the costs associated with modifying the specific property in which you choose to locate your Max Muscle Store. In some limited cases, certain costs have added more than $150,000 to the cost of opening a Max Muscle Store.
  • The franchisor reserves the right to require you to use a designated or approved contractor to construct your Max Muscle Store to the point that it is ready for installation of your furniture, fixtures, and equipment (“FFE Ready Condition”) and to receive rebates or other consideration from such contractor.
  • The franchisor will complete, at your expense, the interior build-out, fixturing, fabrication, and installation of your Max Muscle Store after you complete, at your expense, the work necessary to bring the premises to FFE Ready Condition as determined by the site survey plan or other instructions or information the franchisor will provide to you.

5.  Storefront Sign:  $2,500 to $7,500

  • You must purchase the franchisor’s approved sign for your storefront. The franchisor will provide you with the specifications that must be followed. The average cost for the storefront sign is $2,750.

6.  Grand Opening:  $5,000 to $10,000

  • You should plan to spend a minimum of $5,000 on your grand opening. The recommended grand opening celebration should last at least one full weekend.

7.  Initial Inventory:  $25,000 to $40,000

  • Your initial inventory will vary with the size of your Max Muscle Store. You must carry a minimum inventory of all Max Muscle Products.
  • When you sign a Franchise Agreement, you must also sign a Product Purchase Agreement with JWE, the exclusive supplier of Max Muscle Products.
  • You may also purchase an initial inventory of approved Authorized Third-Party Products.

8.  Supplies:  $500 to $1,000

9.  Travel and Living Expenses:  $1,500 to $2,500

  • The franchisor provides training at its headquarters located in Orange, California, or at another location designated by it for two people.
  • You must pay for air fare, lodging, most meals, ground transportation, salaries and benefits, and any other personal expenses for yourself and any additional attendees incurred during this time.
  • Some meals are provided during the training (continental breakfasts and some lunches).

10.  Computer Hardware, the Max Muscle Point of Sale System, and Other Software:  $3,600 to $4,800

  • The estimated initial investment includes costs related to the purchase of specific computer hardware and software, along with a 10-year license for the Max Muscle Point of Sale System, which also includes technical support and upgrades.
  • The monthly license fee is $100.

11.  Prepaid Expenses:  $500 to $1,500

  • The estimated amount includes utility deposits; fees for city, state, and local business licenses; business entity organization expenses; and other prepaid expenses.

12.  Insurance Premiums:  $1,000 to $3,500

  • Insurance premiums will vary depending on the amounts and areas of coverage that you desire. Average annual premium costs range between $1,000 and $3,500.

13.  Vehicle:  $0 to $2,500

  • The franchisor does not require that you have a vehicle. However, if you are approved by the franchisor to purchase area development rights, it recommends that you have a vehicle.

14.  Additional Funds for First 3 Months:  $15,000 to $27,000

  • This is for budgeting purposes only to account for unanticipated expenses. This amount includes estimated operating expenses you should expect to incur during the first 3 months of operations, not including any revenue generated by your Max Muscle Store.
  • It includes payroll costs (but not a draw or salary for you), taxes, utilities, advertising, rent, accounting and other professional fees, and other operational expenses.
  • These figures are estimates. You may incur additional expenses starting your business.

15.  Single Unit Total:  $131,100 to $281,300

  • This does not include any sales, use, or similar taxes that may be assessed by state or local authorities.

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