The Max ChallengeFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A THE MAX CHALLENGE franchise requires a total initial investment of $63K – $349K, including a $40K franchise fee. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 37.5% charge-off rate across 14 loans[1]. Verdict grade: F. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $63K – $349K
- 9th pct Health & Fitn…
- Avg gross sales
- N/A
- 59th pct Health & Fitn…
- Royalty
- N/A
- Units
- 36
- 66th pct Health & Fitn…
- SBA default
- 37.5%
- system-wide median varies by category
Quick verdict · Health & Fitness · color = vs category peers
Green = >15% above Health & Fitness avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
37.5% of SBA loans charged off across 14 loans, above the 16% franchise average.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $63K – $349K including a $40K franchise fee.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict F (Bottom Quintile) with a risk score of 87/100. SBA loan charge-off rate of 37.5% across 14 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Fit Franchise Brands, LLC
- Parent company
- Max Transformation Holdings, LLC
- CEO title
- Chief Executive Officer
- Bryan Klein
- CEO experience
- 30 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- NJ
- HQ
- Justin Corporate Center (Bldg. 2, #400), 200 Route 9 North, Manalapan, New Jersey 07726
- Auditor
- Citrin Cooperman & Company, LLP
- Audited financials
- Franchisor revenue
- $1.9M
- vs $3.6M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
THE MAX CHALLENGE franchisees operate boutique fitness studios offering group workout classes (likely HIIT, strength, or circuit-based training). Day-to-day operations include class scheduling, instructor management, member retention programs, facility maintenance, and marketing to acquire and retain gym memberships in their protected territory.
- CEO
- Bryan Klein
- Headquarters
- NJ
- Founded
- 2013
- FDD year
- 2025
- States available
- 5
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $15K | $45K |
| Equipment, build-out, other | $8K | $264K |
| Total initial investment | $63K | $349K |
Source: THE MAX CHALLENGE 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $63K – $349K
- Better than avg vs category
- Liquid capital req'd
- $15K – $45K
- Better than avg vs category
- Franchise fee
- $15K – $40K
- Better than avg vs category
- Royalty
- The Greater of 7% of gross revenues or the Monthly Minimu…
- Ad fund
- Greater of 2% of gross revenues or $200 per month
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | The Greater of 7% of gross revenues or the Monthly Minimum Royalty Fee (Months 1-12: $600, Months 12-120: $1100) |
| Technology fee | $599 |
| Training fee | $15K |
| Transfer fee | $20K |
| Renewal fee | $20K |
| Total fee load | 9.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Health & Fitness averages
How The Max Challenge Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 36
- Opened
- 1
- Last reporting year
- Closed
- 2
- Terminated
- 2
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 5.6%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 94%
- vs corporate-owned
- Net growth (yr3)
- -2.9%
- Net unit change last year
- 3-yr CAGR
- -17.1%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 5
- Projected new
- 0
- Franchisor's next-year forecast
- Transfer rate
- 13.9%
- Owners selling to other franchisees
- Termination rate
- 5.6%
- Franchisor-initiated terminations
- Ceased ops
- 8.3%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 13 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 14
- Loan volume
- $1.7M
- Median loan
- $125K
- 50th percentile
- Charge-off rate
- 37.5%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 62.5%
- 5-yr charge-off
- 50.0%
- Loans approved 2021+
- Active lenders
- 3
- Defaults
- 3
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into The Max Challenge's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 3 lenders with concentration factor
- Per-state charge-off rates across 5 states
- Startup risk premium and job creation velocity
- 6-year lending trend
Instant access. No subscription.
A 37.5% charge-off rate means roughly 1 in 3 franchisees failed to repay their SBA loan. Investigate what changed.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Declining unit growth, missing financial performance data, and opaque profitability metrics create meaningful uncertainty about franchisee earnings potential and system health.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Citrin Cooperman & Company, LLP⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 87 / 100 rating
- 01MINORDeclining unit count (-2.9% YoY) suggests system contraction and potential market saturation or franchisee struggles
- 02MINORNo average revenue or net income disclosure (Item 19) prevents realistic ROI assessment and profitability validation
- 03MINORWide investment range ($63K-$349K) indicates inconsistent startup costs and unclear capital requirements
- 04MINORRoyalty structure with monthly minimum fee may create cash flow pressure for lower-volume locations
- 05MED36 total units is relatively small system with limited scale and brand recognition in competitive fitness market
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Driveable distance |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 2 mi |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | New Jersey |
| Jury trial waiver | Yes |
| Governing law | New Jersey |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 5 hrs
- Training location
- On-site and franchisor facilities
- Ongoing training
- Required
- POS system
- ClubReady
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: ClubReady
Item 20 · call current owners
Franchisee Contacts
49 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
THE MAX CHALLENGE · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a THE MAX CHALLENGE franchise?
The total investment to open a THE MAX CHALLENGE franchise ranges from $63K – $349K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do THE MAX CHALLENGE franchise owners earn?
THE MAX CHALLENGE does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is THE MAX CHALLENGE's franchise failure rate?
Based on SBA 7(a) loan data, THE MAX CHALLENGE has a charge-off rate of 37.5% across 14 loans, meaning 37.5% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many THE MAX CHALLENGE franchise locations are there?
As of their most recent FDD filing, THE MAX CHALLENGE has 36 total units in the United States, including 34 franchised units and 2 company-owned units. 1 new units were opened in the latest reporting year.
Is THE MAX CHALLENGE a good franchise to buy?
FranchiseVerdict rates THE MAX CHALLENGE as a F-grade franchise with a risk score of 87 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.