The Max Challenge Franchise Cost, Revenue & Review 2026
- Investment
- $151K – $349K
- Disclosed sales
- not disclosed
- SBA charge-off
- Limited · 14 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
THE MAX Challenge is a fitness franchise combining group workout classes with nutrition coaching in a 10-week transformation program. Franchisees run the studios, managing instructors, classes, and member results.
FranchiseVerdict summary · 2026
A THE MAX CHALLENGE franchise requires a total initial investment of $151K – $349K, including a $15K – $40K franchise fee and an ongoing 7.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $151K – $349K
- 26th pct Health & Fitn…
- Avg gross sales
- N/A
- Royalty
- 7.0%
- 37th pct Health & Fitn…
- Units
- 36
- 65th pct Health & Fitn…
- SBA charge-off
- N/A
Quick verdict · Health & Fitness · color = vs category peers
Green = favorable by >10% vs Health & Fitness median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $151K – $349K including a $40K franchise fee, 7.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 46/100 (higher is better).
- GROWTHNegative: net -1 franchised outlets in the latest year (1 opened, 2 closed); 4 signed but not yet open (Item 20).
- DECLINESystem contracting at -17.1% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- FIT FRANCHISE BRANDS, LLC
- Parent company
- Max Transformation Holdings, LLC (MAX Holdings)
- FDD Item 1, page 8 of the 2025 FDD
- Ultimate parent
- Max Transformation Holdings, LLC
- FDD Item 1, page 8 of the 2025 FDD
- Predecessor
- Max Franchising, LLC (name changed to Fit Franchise Brands, LLC on May 31, 2024)
- Prior franchisor entity
- 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
- New Jersey
- HQ
- Justin Corporate Center (Bldg. 2, #400), 200 Route 9 North, Manalapan, New Jersey 07726
- Auditor
- Citrin Cooperman & Company, LLP
- Audited financials
- Franchisor revenue
- $3.6M
- vs $1.9M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Same owner · FDD Item 1, page 8
1 other brand on this site name Max Transformation Holdings, LLC as parent or ultimate parent in their own FDD.
Grouped by the owner's name as each filing prints it (this page: the 2025 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Bryan Klein
- Headquarters
- NJ
- Founded
- 2013
- FDD year
- 2025
- States available
- 5
Can you afford it, and what does the money buy?
Entry cost runs 36% below the typical health & fitness franchise.
Source: FDD 2025 · Items 5–7
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 | $96K | $264K |
| Total initial investment | $151K | $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
- $151K – $349K
- Top 40% of category vs category
- Liquid capital req'd
- $15K – $45K
- Top 40% of category vs category
- Franchise fee
- $15K – $40K
- Top 40% of category vs category
- Royalty
- 7.0%
- Set by a formula · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $599 |
| Training fee | $15K |
| Transfer fee | $20K |
| Renewal fee | $20K |
| Total fee load | 9.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
THE MAX CHALLENGE makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one THE MAX CHALLENGE unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 9.0% (near the Health & Fitness median).
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System contracting at -17.1% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Health & Fitness medians
How The Max Challenge Compares
Category median of published Health & Fitness brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
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 (3-yr)
- -17.1%
- Net unit change over 3 years
- 3-yr CAGR
- -17.1%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 2
- Not renewed
- 0
- Transferred
- 5
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 4
- 0.11 per open outlet · Item 20 Table 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 12 · 5 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
5
states with franchisees (per FDD Item 12)
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
- Limited · 14 loans
- Limited SBA coverage: 14 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 14 loans
- 5-yr charge-off
- Limited · 14 loans
- Loans approved 2021+
- Active lenders
- 3
- Defaults
- 3
- Typical loan rate
- 7.9%
- avg rate to borrowers
- Franchised industry avg
- 15.8%
- n=7,965 loans
- Jobs supported
- 75
- 4.5 per loan
- Lender concentration
- 62%
- top lender's share
Borrower mix: 63% went to startups / new businesses, 37% to established operators
Franchise vs independent — in fitness and recreational sports centers, franchised businesses charge off at 15.8% vs 18.2% for independents — franchising is associated with 13% lower SBA default risk in this category.
Top lenders financing The Max Challenge franchisees
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for The Max Challenge from SBA 7(a) FOIA data.
- Principal loss rate
- 22.6%
- Avg SBA guarantee
- 70%
- Avg interest rate
- 7.87%
- Avg chargeoff amount
- $125K
- Lender concentration
- 61.5%
- Job velocity
- 4.5 per $100K
- NAICS benchmark
- 12.5%
- NAICS 713940
- Jobs supported
- 75
Top SBA lendersTop lender holds 62% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Stearns Bank National Association | 8 | $1.3M | 42.9% |
| 2 | Manufacturers and Traders Trust Company | 3 | $200K | 0.0% |
| 3 | The Huntington National Bank | 2 | $130K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| NJNew Jersey | 7 | 1 | 25.0% |
| OHOhio | 2 | 0 | -- |
| PAPennsylvania | 2 | 1 | 50.0% |
| FLFlorida | 1 | 0 | 0.0% |
| TXTexas | 1 | 1 | 100.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
No litigation or bankruptcy, and financials are audited with positive net income of $750,067 on $1.94M revenue. However, franchisor equity is negative (-$285,276), there is no Item 19 disclosure, and the system is shrinking (36 units, net growth -17.1%).
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Citrin Cooperman & Company, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Audited statements are for Fit Franchise Brands, LLC (formerly Max Franchising, LLC), the franchisor entity; balance sheet reconciles (assets 922,121 = liabilities 1,207,397 + member's deficit -285,276). Figures in whole USD. 2024 total revenues 3,617,577 (royalties, ENE fees, technology fees, call center fees, brand fund fees, transfer/termination fees, franchise fees, other franchise related fees, rebate income). Net worth is a member's deficit (negative). Auditor firm name not present in extracted text (report signed from Florham Park, NJ, dated 4/25/2025). Going concern language present. Other revenue is rebate income 98,922 (non-franchise-related).
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- 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 46 / 100 verdict
- 01MINORNegative franchisor net worth: -$285,276
- 02MINORNo Item 19 earnings disclosure
- 03MINORSystem contraction: net_growth_pct -17.1%, unit_count 36
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 2 mi |
| Online sales rightsℹ | 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
- Site selection
- franchisee
- Franchisor financing
- Not offered
- Item 10
- POS system
- ClubReady
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: ClubReady
Item 20 · call current owners
Franchisee Contacts
54 owners to call
Name · phone · city · state. Extracted from FDD Item 20
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 $151K – $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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns THE MAX CHALLENGE?
THE MAX CHALLENGE is franchised by FIT FRANCHISE BRANDS, LLC. Its parent company is Max Transformation Holdings, LLC (MAX Holdings). The ultimate parent named in the FDD is Max Transformation Holdings, LLC. Source: FDD Item 1, 2025 filing.
What is Item 19 in the THE MAX CHALLENGE FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the THE MAX CHALLENGE FDD and qualifies whose outlets they describe.
What is THE MAX CHALLENGE's franchise failure rate?
SBA 7(a) loan charge-off data is not available for THE MAX CHALLENGE (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
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 B-grade franchise with a verdict score of 46 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.
For franchisors
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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.