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FDD Talk 2016: The Max Muscle Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

by Franchise Chatter on April 28, 2016

in FDD Talk 2017: Retail Franchises, Franchise Earnings, Retail Franchise, Sports Nutrition Franchise



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Max Muscle Photo from PRWeb

In this FDD Talk 2016 post, you’ll learn the following:

  • Section I – Background information on the Max Muscle franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a Max Muscle franchise, based on Item 7 of the company’s 2016 FDD
  • Section III – Presentation and analysis of Max Muscle’s financial performance representations, based on Item 19 of the company’s 2016 FDD, including information on the:
  • average, high, and low monthly sales revenue generated on the sale of Max Muscle Products, Distributed Products, and authorized Third-Party Products made by the 114 franchised Max Muscle Stores (divided into the top tier, middle tier, and bottom tier) that satisfied the franchisor’s Reporting Criteria during the period between October 1, 2014 and September 30, 2015
  • high and low gross profit margins earned on the sale of Max Muscle branded supplements and nutraceutical branded supplements (separately stated) made by the 114 franchised Max Muscle Stores that satisfied the franchisor’s Reporting Criteria during the period between October 1, 2014 and September 30, 2015
  • average transaction amount on the sale of Max Muscle Products and authorized Third-Party Products, as reported by the Max Muscle Register System, by the 114 franchised Max Muscle Stores that satisfied the franchisor’s Reporting Criteria during the period between October 1, 2014 and September 30, 2015

Section I – Background Information

As a kid growing up in a broken home, Joe Wells didn’t have the chance to get involved with sports until he was thirteen years old. But when he did finally have the chance, he made the most of it. He played football, basketball, and track all through high school and college, and even played football professionally as a linebacker for the LA Raiders.

He also became a self-taught expert in sports nutrition and muscle-building supplements, which led him to eventually start Max Muscle Sports Nutrition in 1990. After more than 10 years of perfecting the brand and its approach to fitness nutrition, franchising began in 2001. The chain reached its most recent peak in number of locations in 2012 with a total of 167 and has declined each year since then to its current 132 locations.

Each store carries a range of nutrition supplements and athletic wear, along with a nutrition coach who provides expert advice to patrons. The brand also includes the popular Max Sports & Fitness magazine.

Here’s how Max Muscle helps people look and feel their best in the competitive sports nutrition segment:

Market Position

The sports nutrition market is a $22 billion industry, and Max Muscle is the original national franchised company to cater to the specialty end of the market.

Franchisees have exclusive brand rights within their territories to Max Muscle products, and this exclusivity establishes and maintains customer loyalty.

Product Mix

Max Muscle has always put its products through the paces of rigorous testing, even when it wasn’t required by government regulations. The chain’s QIG commitment to Quality Ingredients Guaranteed means their products actually meet or exceed whatever is claimed on the label.

Major product categories revolve around protein, diet and weight loss, sports performance, health and wellness, and amino acids. Max Muscle products always adhere to the FDA’s CGMPs (Current Good Manufacturing Practices).

Domain Expertise

Each franchisee is encouraged to become a NESTA-Certified Fitness and Nutrition Coach (CFNC), and having at least one coach per location is a critical factor in store success. NESTA is the National Exercise and Sports Trainers Association that provides a variety of certification programs.

This in-house expertise is a major differentiator for franchisees, who can show their customers domain expertise that boosts credibility in the marketplace.

Meal Planning

With NESTA certification comes another differentiating factor giving Max Muscle franchisees a competitive advantage – meal planning. Customers greatly appreciate the precise instructions customized to help them meet their fitness goals.

InBody Composition Analysis

Max Muscle’s partnership with InBody leverages that company’s super-advanced body composition analysis process. This analysis is another differentiating factor vital to the Max Muscle competitive advantage. Knowing an individual’s starting point through precisely measured fat, muscle, and fluids composition is a key to success.

Section II – Estimated Costs

  • Please click here for detailed estimates of Max Muscle franchise costs, based on Item 7 of the company’s 2016 FDD.

Section III – Financial Performance Representations (Item 19, 2016 FDD) and Analysis



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