FDD Talk 2017: What You Need to Know About the Max Muscle Franchise Opportunity (Financial Performance Analysis, Costs and Fees)

In this FDD Talk 2017 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 2017 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Max Muscle franchise, based on Items 5 and 6 of the company’s 2017 FDD

• Section IV – Presentation and analysis of Max Muscle’s financial performance representations, based on Item 19 of the company’s 2017 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 105 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, 2015 and September 30, 2016

• high and low gross profit margins earned on the sale of Max Muscle branded supplements and nutraceutical branded supplements (separately stated) made by the 105 franchised Max Muscle Stores that satisfied the franchisor’s Reporting Criteria during the period between October 1, 2015 and September 30, 2016

• 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 105 franchised Max Muscle Stores that satisfied the franchisor’s Reporting Criteria during the period between October 1, 2015 and September 30, 2016

Section I – Background Information

18 Things You Need to Know About the Max Muscle Franchise

Rebranding as MM Nutrition by Max Muscle

1.   In early 2016, Max Muscle began rolling out a rebranding campaign that started the previous year when the company felt that it needed to broaden its market and move away from catering to more serious athletes.

2.  According to Sean Greene, President of Max Muscle Sports Nutrition, the company is now seeing more “entry-level people” entering its stores.

3.  The company decided that Max Muscle Sports Nutrition was too intimidating for mainstream customers and changed all its signage to MM Nutrition by Max Muscle.

4.  Max Muscle has also changed the name of its monthly self-published magazine from Max Sports and Fitness to Max Health and Fitness.

New Products

5.  Max Muscle, which makes its own branded products, released several new items in 2016.

6.  There were new flavors for Maxpro ELITE protein powder and Emerge fat loss drink mix. Maxpro ELITE is now available in eight different flavors while there are now fifteen different flavors of Emerge.

7.  A completely new product added to Max Muscle’s catalog was the Max Pure Whey, a 100% pure whey protein concentrate available in three different flavors.

8.  Also new to Max Muscle’s line up is the Total Weight Loss System consisting of three products called Burn, Control, and Lose.

9.  New to the company’s Health and Wellness category are the Max Advanced Sleep Aid and Joint Relief 2.0.

10.  Max Muscle’s 2017 product catalog is not yet available.

Standing Out From the Competition by Offering Unique Services

11.  According to Greene, Max Muscle was the first specialized nutrition outlet to have an actual, certified nutrition coach in its stores.

12.  The company requires that any employee working the floor of one of its locations has to be a certified fitness/nutrition coach.

13.   All of Max Muscle’s coaches are certified by a nationally accredited organization. Greene says that the credibility ensures that the coaches have the information and education to help customers get the best results possible.

14.  Max Muscle also offers a customized meal planning program that integrates its branded products into a customer’s dietary regimen.

15.  Each Max Muscle location has a body composition analysis tool that the coaches use to measure customers and come up with a plan to help them achieve their personal fitness goals.

Company History

16.  Max Muscle was founded in 1991 by Joe Wells, a former linebacker for the L.A. Raiders.

17.  Today, there are around 150 Max Muscle locations throughout the United States.

Entrepreneur’s Franchise 500

18.  Max Muscle has only ranked on Entrepreneur’s Franchise 500 list a few times in the past decade. The company’s highest rank was No. 341 in 2015 and its lowest rank was No. 403 in 2017.

Section II – Estimated Costs

• Please click here for detailed estimates of Max Muscle franchise costs, based on Item 7 of the company’s 2017 FDD (updated).

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Please click here for detailed information on Max Muscle’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2017 FDD.

Section IV – Financial Performance Representations (Item 19, 2017 FDD) and Analysis