16 frequently asked questions answered with data from the 2023 Franchise Disclosure Document.
The total initial investment to open a The MAX Challenge franchise ranges from $151K to $349K (2023 FDD). This includes the franchise fee, equipment, build-out, inventory, and working capital needed before opening.
View full investment analysisThe initial franchise fee for The MAX Challenge is $40K (2023 FDD). This one-time fee is paid to the franchisor when signing the franchise agreement and covers the right to use the brand, systems, and initial training.
View full investment analysisData sourced from the The MAX Challenge 2023 Franchise Disclosure Document (FDD). Always review the most current FDD and consult with a franchise attorney before making investment decisions.
No, The MAX Challenge does not require franchisees to have dedicated real estate (2023 FDD). This can significantly reduce startup costs and ongoing overhead.
View full investment analysisThe MAX Challenge charges a royalty fee of 7.0% of gross sales (2023 FDD). This ongoing fee is typically paid weekly or monthly to the franchisor for continued use of the brand and support systems.
View full fees analysisThe total ongoing fee rate for a The MAX Challenge franchise is approximately 9.0% of gross sales (2023 FDD). This includes the royalty fee, a 2.0% marketing/advertising fund contribution, a $145/month technology fee, and other recurring charges.
View full fees analysisThe MAX Challenge has been involved in 1 litigation cases over the past 3 years (2023 FDD). There are no class action lawsuits pending.
View full litigation analysisNo, the The MAX Challenge franchisor has no bankruptcy filings in their disclosure history (2023 FDD).
View full litigation analysisThe MAX Challenge offers exclusive territory rights to its franchisees (2023 FDD). The franchise agreement includes encroachment protection, preventing the franchisor from placing another unit in your territory. Online sales are managed by the franchisor, not individual franchisees.
View full territory analysisThe MAX Challenge currently operates 42 locations (2023 FDD) (41 franchised, 1 company-owned). The system contracted by 14.3% over the past year. The 3-year compound annual growth rate is -10.7%.
View full growth analysisThe 1-year franchisee turnover rate for The MAX Challenge is 14.3% (2023 FDD). This includes closures, terminations, non-renewals, and transfers. A lower turnover rate generally indicates higher franchisee satisfaction and system stability.
View full growth analysisThe MAX Challenge does not include an Item 19 financial performance representation in their FDD (2023 FDD). This means the franchisor has chosen not to disclose revenue, profit, or other financial figures in the Franchise Disclosure Document.
View full financials analysisThe initial franchise agreement term for The MAX Challenge is 10 years (2023 FDD). Franchisees can renew 1 time for 10-year periods. The total potential term is 20 years.
View full contract analysisThe MAX Challenge's post-termination non-compete clause restricts former franchisees from operating a competing business for 2 years within 10 miles of the former location (2023 FDD).
View full legal analysisYes, The MAX Challenge's franchise agreement requires mandatory arbitration for dispute resolution (2023 FDD). The agreement includes a jury trial waiver.
View full legal analysisThe MAX Challenge provides 45 hours of initial training over approximately 2 weeks (2023 FDD). Ongoing field support is provided on a as-needed basis.
View full support analysisYes, The MAX Challenge provides site selection assistance to help franchisees find the right location (2023 FDD). The franchisor also provides technology support and systems.
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