The Max Challenge franchise
2022 filing · April 22, 2022Fewer locations
The Max Challenge at a glance
A fitness center running ten-week group transformation programs combining workouts and nutrition coaching. At the end of 2021 there were 49 The Max Challenge locations in the US, 48 franchised and 1 company-owned.
The business
- Franchisor
- MAX Franchising, LLC
- The company that sells the franchises
- Current franchisor selling since
- 2013
- 9 years of selling franchises
- Franchisor based in
- Morganville, New Jersey
- Typical size
- About 2,500 sq ft
What you pay
- Cost to open
- $151K–$349K
- A traditional stand-alone center
- Franchise fee
- $40,000
- Paid once, when you sign
- Royalty
- 7% + minimum
- The greater of 7% of gross revenues or a minimum monthly royalty that rises on a set schedule, paid monthly
- Brand fund
- Yes
- 2% of gross revenue or $200 a month, whichever is more, paid monthly
- Renewal fee
- See terms
- Then-current renewal fee, currently $20,000, non- refundable
- Agreement length
- 10 years
- Territory
- Limited
- Limited protection
- Franchisor financing
- None offered
Where it is
- US locations, 2021
- 49
- Franchised and company-owned
- Franchised
- 48
- Company-owned
- 1
- Change in 1 years
- −17
- Franchised locations, 2019–2021
Support and records
- Lawsuits disclosed
- Yes
- Franchisor revenue, 2021
- $2.05M
- The company, not one location
- Franchisor net income
- $484K
- Latest filing
- Apr 22, 2022
- 2022 filing
From MAX Franchising, LLC’s 2022 filing; revenue and net income from its audited financial statements, page 182; SBA status from the SBA Franchise Directory, October 28, 2026.
Franchisor revenue is the company that sells the franchises (royalties, fees and anything else it earns), not what a location makes.
Where it ranks
The Max Challenge among all franchises with the same figure.
| Figure | The Max Challenge | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $250,253 | Costs less than 62% of franchises |
| Franchise feePaid once, when you sign | $40,000 | Lower than 46% of franchises |
| RoyaltyShare of sales paid to the franchisor | 7% | Higher than 70% of brands with a set rate |
| US locationsFranchised and company-owned | 49 | More than 64% of franchises |
How much a The Max Challenge franchise costs
Opening a traditional stand-alone center costs an estimated $151,028 to $349,478. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are leasehold improvements/fit out note ($7,500 to $115,000) and additional funds note ($15,000 to $45,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee Note | $40,000 | ||
| Training Fee Note | $15,000 | ||
| Opening Advertising-Enrollment/First Three Months Local Advertising Expenditures Note | $27,000 | ||
| Computer Equipment; Note | $6,000 | $7,500 | |
| Pre-Registration Office Note | $0 | $5,000 | |
| Grand Opening Package, MAXAccess Passes & MAX Protein Powder Note | $3,728 | $4,728 | |
| Insurance Note | $500 | $2,000 | |
| Signage | $6,000 | $18,000 | |
| Equipment and Furnishings Note | $23,100 | $38,250 | |
| Prepaid Rent and Security Deposit Note | $4,500 | $20,000 | |
| Leasehold Improvements/Fit out Note | $7,500 | $115,000 | |
| Utility Deposits | $1,000 | $2,000 | |
| Licenses and Permits; Fictitious Name Registration and/or Incorporation and Legal Review Note | $1,500 | $5,000 | |
| Initial Training; Travel, Lodging, Meals, etc. for Initial Training Note | $200 | $5,000 | |
| Additional Funds Note | $15,000 | $45,000 | |
| Total | $151,028 | $349,478 | |
Source: MAX Franchising, LLC, 2022 filing, page 22
The Max Challenge franchise fee
The franchise fee is $40,000. You pay it when you sign the franchise agreement.
Source: MAX Franchising, LLC, 2022 filing, page 12
Royalty and ongoing fees
| Royalty | The greater of 7% of gross revenues or a minimum monthly royalty that rises on a set schedule, paid monthly. |
|---|---|
| Brand or marketing fund | 2% of gross revenue or $200 a month, whichever is more, paid monthly. |
| Transfer Brokerage Fee | 20% of the sale price |
| Renewal Fee | Then-current renewal fee, currently $20,000, non- refundable |
| Additional Initial Training Fee | $500 per person |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: MAX Franchising, LLC, 2022 filing, pages 14 and 15
Other fees as filed, from pages 16–17. The filing lists every fee, including late fees and audit costs.
Sales and earnings
No figures The Max Challenge does not share sales or profit figures for its locations. Talking to current and former franchise owners is the usual way to learn what a location earns.
Source: MAX Franchising, LLC, 2022 filing, page 67
- Estimate Estimated yearly sales per location
- $150K–$210K
Estimated from the royalties the franchisor collected in 2021 at its 7% royalty rate, over about 54 franchised locations.
Source: MAX Franchising, LLC, 2022 filing, page 182
SBA loans to The Max Challenge franchisees
Lenders approved 13 SBA 7(a) loans for The Max Challenge franchisees from 2016 to 2025, $1.66M in all. Of the 9 that have ended, 6 were paid in full and 3 were charged off. The other 4 haven’t ended yet.
A charged-off loan is one written off as uncollectible. See SBA franchise loans for how 7(a) and 504 loans work.
Source: SBA 7(a) and 504 loan data, as of September 30, 2026
How The Max Challenge compares
Of the 92 gym franchises on this site, The Max Challenge is the 13th cheapest to open and the 25th largest by number of locations.
| Figure | The Max Challenge | Typical gym brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $151K | $342K | $222K |
| Cost to open, high end | $349K | $653K | $477K |
| Franchise fee | $40K | $50K | $40K |
| Royalty | 7% | 6.5% | 6% |
| US locations | 49 | 17 | 21 |
| Closed or left per year | 22% | 4.8% | – |
| Change in franchised locations, 1 yrs | −26.2% | +42.9% | – |
| Shares earnings figures | No | 53 of 92 | 2,147 of 3,352 |
Typical is the median across the 92 brands in gym franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2019 | 70 (+5) | 0 | – | – |
| 2020 | 59 (−11) | 0 | – | – |
| 2021 | 48 (−11) | 1 | +2 | −13 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: fitness franchise costs and franchise failure rates.
Source: MAX Franchising, LLC, 2022 filing, page 68
Who owns The Max Challenge?
The Max Challenge franchises are sold by MAX Franchising, LLC.
From MAX Franchising, LLC’s 2022 filing.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | Yes. The filing describes past or pending cases involving the franchisor, its affiliates or its executives on page 11. |
|---|---|
| Bankruptcy | No bankruptcy of the franchisor. Its CEO filed for personal Chapter 7 bankruptcy in 2012 and received a discharge that year. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: MAX Franchising, LLC, 2022 filing, litigation on page 11, bankruptcy on page 12
The Max Challenge filings
The figures on this page come from MAX Franchising, LLC’s 2022 filing, issued April 22, 2022, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2022 filing | April 22, 2022 | NASAA depository | Costs, fees and locations, 2019–2021 |
Each link opens the filing as a PDF. See the newest filings across all brands.
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