MaxStrength Fitness logo

MaxStrength Fitness Franchise

Audited Financials
FitnessEst. 2021Westlake, OH
www.maxstrengthfitness.com

Risk Score

Pending analysis

Investment Range

$437,597 - $638,992

Franchise Fee

$33,000

Total US Locations

4

Business Summary

MaxStrength Fitness offers franchises that provide individualized one-on-one personal strength training sessions. These sessions are 20 minutes long, offered once or twice per week by appointment only, in a precisely controlled, distraction-free training studio environment. MaxStrength Fitness utilizes a high-intensity/low-force protocol designed for safety and results, with programs tailored to each client's goals and physical capabilities. Studios also sell selected health and fitness products to enhance training programs. The target market for MaxStrength Fitness includes families and individuals with substantial household incomes, typically professionals and executives aged 45 or older, stay-at-home parents 45 and older, and baby boomers 65 and older.

Corporate History

MaxStrength Fitness Franchising LLC was formed on January 25, 2021, as an Ohio limited liability company. MaxStrength Fitness began offering franchises in May 2021. The company operates under its LLC name, "MaxStrength Fitness Franchising LLC," and the names "MaxStrength" and "MaxStrength Fitness." Before franchising, three affiliates operated MaxStrength Studios: Overload of Westlake, Ltd., which began doing business as MaxStrength Fitness in May 2007; MaxStrength Fitness of Willoughby, LLC, which started in April 2017; and MaxStrength Fitness of Strongsville, LLC, which began operations in October 2023. These affiliates operate businesses similar to the franchised studios.

Financial Overview

Investment Range

$437,597 - $638,992

Franchise Fee (Low)

$33,000

Franchise Fee (High)

$54,900

Royalty %

7%

Marketing %

2%

Equipment Costs (Low)

$95,000

Equipment Costs (High)

$133,000

Working Capital

$43,334

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

MaxStrength Fitness Franchising LLC's financial statements for the years ended December 31, 2024, 2023, and 2022 were audited, and the independent auditors issued an unqualified opinion. The company reported a net loss of $263,049 in 2024, $277,399 in 2023, and $51,108 in 2022. Member's equity was a deficit of $589,032 at the end of 2024, $325,983 in 2023, and $48,584 in 2022. The company has deferred revenues of $201,650 in 2024, up from $52,025 in 2023, indicating payments received for services not yet performed, such as initial franchise fees. MaxStrength Fitness has a member loan payable of $384,489 at the end of 2024, which is unsecured and non-interest bearing. The notes to the financial statements do not raise a going concern qualification, implying management and auditors believe the company has the ability to continue as a going concern.

Financing Details

MaxStrength Fitness does not offer any direct or indirect financing to franchisees. This means franchisees will need to secure their own funding from third-party sources to cover the initial investment and ongoing operational costs. MaxStrength Fitness also does not guarantee any franchisee's notes, leases, or other obligations.

Performance Metrics

Total US Locations

4

Franchised Units

1

Corporate Units

3

Avg Square Footage

2,400

Franchising Since

2021

Agreement Terms

Initial Term

10 years

Renewal Term

10 years

Renewal Conditions

To renew their franchise, MaxStrength Fitness franchisees must comply with all terms of their current Franchise Agreement and other agreements, including the Operations Manual. They must refurbish and redecorate their premises or secure a suitable new location to meet MaxStrength Fitness's then-current standards for new or renewed franchises. Franchisees must correct any identified operational deficiencies, pay a renewal fee of $100, and sign MaxStrength Fitness's then-current Franchise Agreement and any ancillary documents. They are also required to sign a general release of all claims against MaxStrength Fitness and its affiliates, officers, directors, employees, and agents. The new Franchise Agreement for renewal may include materially different terms and conditions, which franchisees must accept.

Training & Support Program

Franchisor Assistance

MaxStrength Fitness provides substantial assistance to its franchisees both before and after opening. Prior to opening, MaxStrength Fitness helps with designating a protected territory, reviewing and approving the proposed studio site and lease terms, and furnishing prototype plans for design and construction. MaxStrength Fitness also specifies required products, equipment, and suppliers, and lends an Operations Manual. It provides specifications for the computer and billing system and an initial training program for the franchisee and their required employees. MaxStrength Fitness also reviews and approves franchisee advertising and provides digital marketing materials from the Brand Fund. After opening, ongoing guidance and assistance are provided in areas such as product specifications, purchasing approved items, developing local advertising, establishing administrative procedures, and conducting employee training. MaxStrength Fitness continues to lend the Operations Manual, issues and modifies System Standards, allows the use of its Marks and confidential information, and indemnifies franchisees for trademark use. MaxStrength Fitness also approves suppliers, offers additional training programs, conducts inspections of studios, and maintains and administers the Brand Fund.

Initial Training Hours

59

Training Location

Cleveland, OH area / Virtual

Ongoing Support

After opening their studio, MaxStrength Fitness franchisees receive ongoing guidance and assistance in several areas. This includes support on product specifications, purchasing approved equipment and supplies, and developing local advertising programs. MaxStrength Fitness also assists with administrative, bookkeeping, accounting, inventory control, and general operating procedures, as well as establishing and conducting employee training programs. MaxStrength Fitness continuously updates its Operations Manual with new or modified System Standards. The franchisor may also provide additional, ongoing, and supplemental training programs and franchise owners' meetings, which can be mandatory. Franchisees are required to attend 75% of these mandatory programs annually and 100% of the annual conference. MaxStrength Fitness conducts inspections of studios, including evaluations of training methods, staff, and services, to ensure high standards. MaxStrength Fitness also maintains and administers a Brand Fund to support marketing and will provide digital copies of marketing materials. Franchisees are responsible for the wages and travel, lodging, and living expenses for attendees at all training and meetings.

Franchise Requirements

Industry Experience Required

No

Management Experience Required

Yes

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

Retail

Owner Participation

Hands-On

Territory Type

Protected

Territory Size Requirements

MaxStrength Fitness grants each franchisee a Protected Territory, the size of which is determined by the population of the market, area demographics, and estimated market demand for its franchised products and services. MaxStrength Fitness typically defines Protected Territories based upon a population of approximately 40,000 persons. Franchisees and MaxStrength Fitness mutually agree on the territory's boundaries when or after the Franchise Agreement is signed. The territory cannot be modified or altered unless both parties agree to the change.

Staffing Notes

MaxStrength Fitness requires the franchisee (if an individual) or one of its principal owners to actively participate in the actual operation of the franchise and devote reasonable time to its efficient operation, unless an approved on-site general manager is employed. If a general manager is used, they must supervise daily operations, obtain prior written approval from MaxStrength Fitness for their qualifications, and complete initial training. The general manager and other employees must obtain all legally required licenses and certifications. Franchisees are exclusively responsible for employee employment terms, compensation, hiring, retention, firing, and training, and must communicate clearly that MaxStrength Fitness is not the employer. MaxStrength Fitness may require franchisees to use a designated vendor for payroll and human resources services. Employees must maintain a neat appearance and adhere to specified dress standards. MaxStrength Fitness prohibits franchisees from recruiting or hiring employees (or former employees within six months) from other MaxStrength Fitness studios or affiliates without written consent, with a penalty of twice the employee's annual salary for violations. Each employee must sign a non-disclosure agreement to protect MaxStrength Fitness's confidential information, proprietary information, and trade secrets, and provide prompt, efficient, and courteous service to customers.