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MaxOut Studio Business Plan - V1218RK

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					Business Plan for MaxOut Studio Unit Concept

Patrick L. McGaha, Jr. and Robert W. Kuypers MaxOut Strength Systems, Inc. 732 E. Michigan St. #114 Orlando, FL 32801 December 2007

Table of Contents

The Business
2 4 4 6 7 8 9 10 11 14 Executive Summary Statement of Purpose Business Description Market Segmentation The Competition Marketing Objectives Management and Operations Summary Appendix A: Orlando Sentinel Appendix B: Orlando Business Journal

The Financials
15 16 Initial Start-up Costs Three-year Profit and Loss Projection

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Executive Summary
MaxOut Strength Systems, Inc. owns rights to and utilizes revolutionary proprietary technology enabling our clients to gain full body strength training results in only one hour a week. Equipment unique to MaxOut Strength Systems, Inc. is unparalleled in the 14.8 billion dollar fitness industry as it allows individuals to effectively stimulate all major muscle groups through strength training with an abbreviated time commitment. The current ownership of Dr. Mike MacMillan, Brett Fadly, Stumpy Harris, Dr. Rick Baxley, and Jim Bruce are silent investors who sought out the aid of Mr. Kuypers to develop their seed concept. Their current investmenst preclude them from providing the immediate capital need to pregress the concept on the level that and invention of this magnitude deserves. This once-a-week advantage also provides safer weight training because muscles, joints and ligaments are only encountering one workout per week and are not over-stressed by three or four workouts per week. Our trainers also offer nutritional and lifestyle guidance to bolster our clients' results and quality of life. For clients who want to engage in cardio activity more than just the day of their scheduled weight training, plentiful cardio equipment are offered for their use at no additional charge. Thus, the MaxOut advantage provides more time out of the gym, greater results and safer processes for our clients. In addition one of the true unique aspects to our presentation of the project is not only as a way to provide strength gains, but as Dr. MacMillan’s true intention, preventative medicine. When people use resistance training the body produces natural growth hormone. That hormone is what repairs the body and fights the effect of aging including: ostoprosis, alzthiemers, senility, sexual disfunction, among a myriad of other problems. Coupled with these unique benefits, MaxOut provides friendly, professional and knowledgeable personal trainers in a client to trainer ratio of 1:1 or 2:1. With no more that 10 clients training at one time, our trainers strive to build relationships with all clients in the studio rather than just those whom they are training. Our corporate identity is not only built on our groundbreaking technology and unparalleled benefits, but also our personable trainers and comforting ambiance. The fitness industry is one of the fastest in any sector. Doubling in a decade from 7 billion to 14.8 in 2005, the progress is only amplified with all the problems that weight and age are afflicting on our population. According to IHRSA, the recognized industry authority on the fitness industry, 39.4 million people had gym memberships last year (a little less than 10% of those that could) and over 9 million used personal training. All of those 9 million where using in deficient machines which waste time and increase the chance of injury. That is where MaxOut will come in and revolutionze the industry. As far as the future of the industry, by 2010 the overall enrollment in fritness facilities will be 50 million with anywhere from 12 to 15 million using MaxOut (personal training).

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With all the strengths found at Maxout; the industry being entered, the monopoly on our intellectual property, you can expect that the management team is a group of piers with strong backgrounds in business development as well as overall finance. The two managing directors Patrick McGaha and Robert W. Kuypers bring with them over 15 years of successful directorship/ business development on seed and fortune 1000 companies alike. Combined with a strong Board of Advisors consisting of Jim Bruce of CFO Team and a noted advisor, Brett Fadley a noted business development director, Stumpy Harris one of the most successful attorneys in Florida, Dr. Rick Baxley Team Physician for the Orlando Magic, and of course the invetor and noted Orthopedic Segeon Dr. Michael MacMillan MaxOut has all the tools required to bring create a successful venture. The fincnaing needed to get this seed growing is miniscul in comparison to the reward that will come when the venture is successful. Overall a loan of $800,000 will allow Mr. McGaha and Mr. Kuypers to garner controlling intrest in the company which will streamline the now democratic process between five owners which can be cumbersome in the development of a seed. The deal at $400,000 for 64% of the company will give the two control of the prototype studio in Winter Park currently netting over $40,000, the assests as far as existing machinery valueing over $100,000 and itelectual property. The other $400,000 will be divided into development of an optimal prototype studio in Downtwon Orlando and the overall set up of the MaxOut corporate structure. This includes the immediate development of franchise documents and not yet developed operating material. This investment will allow MaxOut to truly germinate the way that a seed of this magnitude should. Projections provided to us by noted franchise development firm FranCorp and those created by the talented executives on the development team project MaxOut Strength Systems will: o o o o o o o o o o Reach 500 franchise units within 5 years Each unit will return over 30% ROI on start up investment annually Initial startup cost per unit of apox $300,000 Minimal Membership for break even at Gross profits Gross sales Estimated annual income per unit at Net Income 5 year income from 500 units Total potential of all sales including units, machines, repairs, etc

The company has long term projections and can operate as a distinct enitity with its many profit streams. Cornering the industry with our technology will allow MaxOut to garner substantial market share.

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Objective
MaxOut Strength Systems, Inc. seeks a small business bank loan in the amount of $800,000 for start-up costs associated with establishing MaxOut Studio in Downtown Orlando. This loan will be sufficient for establishing a location, purchasing equipment, start-up marketing resources and initial working capital to operate the overall corporation.

Statement of Purpose
MaxOut Studio’s superiority in the industry is based on their intellectual property. The concept’s ability to save the user time and money (one in the same for most MaxOut users) as well as provide faster results than conventional training all the while reducing the chance of injury makes us unique in the 16 billion dollar fitness industry. MaxOut will capitalize on this strategic advantage to quickly garner market share.

Keys to Success
The keys to success in our business are: 1. Location - Units must be placed in locations that have attributes of MaxOut customer base. 2. Public Relations - Introducing new concept, "world is round" is vital to success in new markets. 3. Results 4. Safety 5. Uniqueness of concept

Company Summary
MaxOut is a revolutionary new technology that will forever change the way people challenge their body. Not only does the machinery enable top athletes to garner strength gains like never before, but more importantly to the fiscal stability of the project is the machines/ concepts unique ability to give the fastest gains with the least overall impact on the body. That is why MaxOut can market the company on multiple levels including strength gains as well as the preventative medicine effects of lifting weights. With the affluence of the baby boomer generation looking for ways to slow the affect of aging, namely degenerative diseases and younger generations more cognitive than ever on the effect of healthy living. MaxOut is poised for expansion faster than has ever been seen before in the industry.

Past Performance Table
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Below lists the past performance of the market test location in Winter Park. Although the studio lacked directorship until the beginning of 2007 and true marketing until mid 2007, the concept maintained sufficient financial levels to cover billing while transitioning into a profitable entity.

Company History
MaxOut Strength Systems is the revolutionary development of noted orthopedic surgeon Dr. Mike MacMillan. A power lifter through much of his youth, Dr. MacMillan continued this passion throughout his life and is now considered one of the foremost experts on the affects of resistance on the body. Dr. MacMillan, a University of Florida associate professor of orthopedic surgery and Orlando-local orthopedic surgeon, developed MaxOut equipment during the 1980’s initially for the sale to professional and collegiate sports teams. His first client to benefit from this technology was NFL All-time rush leader and future Hall of Famer, Emmitt Smith. A severe hamstring injury sidelined the standout running back in 1994; however, through recovery methods including MaxOut’s genesis version, the Negator, Smith healed quickly allowing him to lead the Dallas Cowboys to a second consecutive Super Bowl win and earning him the Most Valuable Player Award for Super Bowl XXVIII. Immediately seeing the associated competitive advantages of the machinery, MacMillan began toiling to perfect the design. Over the next thirteen years and millions of dollars in research the company came to fruition with the help of four other businessmen.

Sales Literature
Accompanying the business plan are several pieces of pre-designed marketing collateral, as well as standard marketing brochures.

What is MaxOut?
The equipment developed by Dr. MacMillan focuses, not only, on the concentric (contraction) movements of the muscles like traditional weight training, but also focuses on exhausting the eccentric (release) movement of the muscles. Universally accepted body science has show that on the concentric the body gains approximately 40% of its results and 60% on the negative. Therefor users of machines in ANY OTHER GYM are wasting 60% of their time . The internal structures of our proprietary technology operates off compressors and computers uniquely configured to industry standard cable and free-weight equipment allow an individual to ―lift‖ what they normally could during a specific exercise until their typical point of fatigue. Once they reach this point of fatigue their personal trainer makes necessary adjustments to the compressor to ―help‖ the client ―lift‖ the weight; the original poundage is then lowered solely by the client allowing for greater fatigue during the eccentric movement. It is this dual fatigue strategy that allows for more effective muscle stimulation per workout, thus limiting the need for gym visits to only once a week. Thus, this once-a-week advantage also provides safer MaxOut Studio 17

weight training because muscles, joints and ligaments are only encountering one workout per week and are not over-stressed by three or four workouts per week.

Business Description
MaxOut Studio C2 will be the first studio facility established following the successful pilot studio in Winter Park. MaxOut Studio will offer a motivating, modern and abstract environment boasting wood floors; flat panel televisions; plentiful mirrors; upbeat music; limited free weights; and outgoing, friendly and knowledgeable staff members. The environment will be cultivated to mirror that of a personal home studio as opposed to the commercial mega-gyms most associated with working out. This ―feel‖ and environment will aid in capturing a more segmented audience that place greater value on home and personal time due to their demanding schedule with work and other responsibilities. In Seth Godin’s book Purple Cow, he explains the change in marketing and product development that has occurred in the U.S. and the direction that MaxOut Studio— Downtown Orlando will take:
“The old rule was this: Create safe, ordinary products and combine them with great marketing. The new rule is this: Create remarkable products that the right people will seek out.”

MaxOut technology is not only unparalleled in the health fitness industry leading to remarkable health and time benefits, but MaxOut Studio—Downtown Orlando will provide a remarkable and welcoming environment through individualized staff relationships and interactions that will lead clients to talk about their experiences and achievements with others. Numerous training times and plans will be offered to assist our clients with achieving their health and fitness goals. A few example plans include: Offerings and Amenities at MaxOut Studio—Downtown Orlando:  Changing rooms  Showers  Lockers  Cardio equipment—treadmills, elliptical machines, recumbent bikes  Industry current weight training machines  Bottled water and sports drinks  Limited free weights  Numerous flat panel televisions The inviting atmosphere, knowledgeable staff, limited time commitment per week and flexible schedule plans offered at MaxOut Studio C2 make this studio a remarkable and natural addition to the busy and demanding lives of those in the Greater Orlando area. MaxOut Studio 17

The Competition
Both direct and indirect competition is evident in the health and fitness industry. MaxOut is an individualized attention, personal training studio offering unparalleled technology affording our clients to achieve their fitness goals with a minimal time commitment at a price that is competitive with the industry standard for personal training on a per session basis. Many gyms in the area offer personal training session starting at $55 per session. When considering the three times per week that one must use a personal trainer in order to gain effective muscle stimulation, the overall price per month is significantly more than the initial membership fee charged by MaxOut of $200. Because clients are able to achieve their strength training goals in only one one-hour training session with MaxOut technology, clients of MaxOut Studio—Downtown Orlando are able to save a significant amount of money on a monthly basis while not sacrificing time or results. The strong price, technology and time benefits associated with MaxOut enable MaxOut Studio to not only differentiate itself from other area studios and gyms, but also allow for us to define a niche within the health fitness industry.

Benefit

MaxOut

Super Slow

Everyone El

Fast Strength Gains Cardio Nutritional Information Shave over 16 hours a month from w/o times Lowest chance of injury Long recovery time Cutting edge equipment based on science Reduce joint and back pains Pay yourself to workout Lower body fat hard to follow the leader is this: The leader is the leader because he did something (BMI) The reason it’s so Smallest negative impact on the body remarkable. -Seth Godin, Purple Cow Used by the pros Getting out of the gym and on with your life

Market Summary
The over 16 billion dollar fitness industry is growing by leaps and bounds. Each year and estimated 9 million people seek the services of a personal trainer. MaxOut need only grab 10% of this market to be a substantial corporate entity. With the ever-growing waste line issue and health problems associated with it, MaxOut will stand out as a leader in this now deemed essential need in daily life. Now more and more every financial level are seeking out the results of training and MaxOut will be their gym.

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Discretionary time is not as plentiful as before. Do I have the time to consistently engage strength training three times per week to effectively stimulate all major muscle groups as the health fitness industry recommends? Can I afford the time to engage strength training once a week?
By stressing your bones, strenght training increases bone density and reduces the risk of osteoperosis. If you already have osteoperosis, strength training can lessen its impact. Equipment unique to MaxOut Studio is unparalleled in the fitness industry as it allows -Mayoclinic.com

individuals to effectively stimulate all major muscle groups through strength training and reach their health fitness goals in only a single one-hour training session per week. Research from the International Health, Racquet and Sportsclub Association (IHRSA) found that the average number of days per year an individual attended a club facility ranged from 90 days to 93 days per year from 2001 to 2005—less than two-thirds the industry recommended strength training engagement to effectively stimulate all muscle groups with standard equipment. The equipment unique to MaxOut is more effective than traditional weight training at stimulating all major muscle groups and significantly reduces the time spent in a gym by two thirds.

The current MaxOut studio in Winter Park, Florida has been testing market receptivity over the past four years and has exhibited encouraging growth over the past year despite its modest 1800 sq. ft. space restriction. Through primarily word-of-mouth marketing and recent PR, they have reached the point of capacity for their current location. MaxOut Studio C2 is the next step to introducing this unparalleled strength training technology to those in the Greater Orlando area who were previously too busy or thought that once-a-week training was not enough.

Market Segmentation

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MaxOut Strength Systems, Inc. has identified the Downtown Orlando area as a prime and lucrative market for MaxOut Studio for several reasons. The primary strength and competitive advantage that MaxOut Studio boasts is its efficient and effective strength training with a minimal time commitment per week. This style of strength training coupled with the busy and demanding lifestyles of those who live and/or work downtown provide a promising marriage of parallel values.
Results University, We havefrom a study conducted at Tuftsshowed thatmost affluent and central zip density and the segmented our market to the three which were published in the Journal of the code within American Medical Association in 1994, strength training increases bone downtown area: for fractures among women… These three zip codes account for over 60,000 reduces the risk 32801, 32803 and 32806. -Center for Disease Control and Prevention people living downtown. Using research from the IHRSA—a trade association conducting annual surveys and amalgamating operational data—and Sperling’s Bestplaces.net—a site providing ―accurate and up-to-date‖ information via data collection methodology from numerous primary and secondary sources—we were able to more acutely narrow our target market within the three area code segment.

Our target market consists of male and female working professionals between the ages of 25-54 with an annual salary greater than $50K with no children and greater than $75K with children. MaxOut Studio will most acutely cater to those who value their health, but the opportunity costs associated with sacrificing their discretionary time in the gym several days a week are too great. Research from the IHRSA identifies the 18-33 and the 34-54 age groups accounting for 35% and 33% total health club memberships in the U.S., respectively. Without taking into consideration the myriad people within this segment that commute to Downtown Orlando to work everyday, almost 30,000 people, or 49.7%, in the 24-54 age range live within the three zip code area. We have determined the 18-24 age range to be secondary to our target market equation due to the generally limited earning potential in their life stage. Additionally, almost 28,000 people, or 46.5%, of the downtown population earn greater than $50K per year and over 16,500 people, or 27.6% earn greater than $75K per year. Coupled with the findings from IHRSA that 50% of those with health club memberships earn over $75K per year and 78% earn over $50K per year, Downtown Orlando is a seemingly lucrative market with only taking into account the demographics that live there. Working professionals and households with no children and making greater than $50K per year are targeted because of their potential for discretionary income yet busy and demanding professional and extracurricular activities. Those professionals and households that have children and earn greater than $75K per year are targeted due to their added discretionary income and addition of greater familial responsibilities. Both lifestyle segments within the target market embody a demanding, highly active standard of living that warrant efficient and effective weight training to bolster their health while enabling them to maintain their responsibilities. The U.S. Census Bureau, Demographic Surveys Division reported in 2003 that only 17% of those working in Downtown Orlando come from the city limits of Orlando—leaving the remaining 83%, or 50,322, private sector worker commuting from surrounding areas. With the minimal time commitment associated with MaxOut strength training, the MaxOut Studio 17

number of commuters with the same demographic and psychographic make-up of those cited in the downtown area implicate a stronger market penetration than just the three zip code segments overviewed.

Marketing Objectives
Initial marketing objectives are based on the necessary number of clients needed to start turning a profit for MaxOut Studio—Downtown Orlando. An introductory membership fee of $240 per client per month enables MaxOut Studio—Downtown Orlando to begin profiting on 127 clients contracted per month. More time out of the gym, greater results and safer processes for our clients encompass the MaxOut advantage and are the salient messages for our integrated marketing mix. Although the MaxOut technology and science are what enable these unparalleled benefits, people buy the results, not the science behind the results. Most people do not care how aspirin works; they just care that it gets rid of their headache. Networking and word-of-mouth campaigns have been successful practices of the Winter Park location and are the primary forms of communication that MaxOut Studio— Downtown Orlando will also take. The professional and time constrained clientele to which we cater rely heavily on networking and face-to-face communication to bolster and maintain their businesses. As such, we will attend networking meetings, introduce our studio during downtown lunch hours and maintain appearances at downtown events. We will identify leaders and active net workers in respective prominent industries located downtown and offer trial incentives to get them in the door. MaxOut Studio—Downtown Orlando will conduct demonstrations at downtown events allowing prospective clients to see how MaxOut technology works and why it takes so much less time to achieve results. Vitamin Shoppe has already agreed to place a MaxOut machine in their downtown area stores for a time period leading to the opening of the downtown studio, so their patrons can see the functionality and fitness potential behind the MaxOut concept. Additionally, we are exploring the same agreement with property management for CNL buildings one and two. With a tentative studio location (CNL Building Two) no further than two miles from the Arnold Palmer and Winnie Palmer hospitals, we will utilize network connections and the name recognition of Dr. Mike MacMillan to market to the staff of the hospitals. Gaining publicity in local periodicals such as the Orlando Sentinel (Appendix A) and Orlando Business Journal (Appendix B) has also been a tactic successfully utilized by the Winter Park location. The downtown location will continue to capitalize on this form of communication with extending contacts to other local periodicals targeted at the same demographic. Additionally, brochures, signage and other collateral material will be published and distributed to clearly and effectively communicate the advantages of the training at MaxOut Studio—Downtown Orlando. MaxOut Studio 17

While we actively seek out the right clientele for MaxOut Studio through a ―guerilla‖ and ―grassroots‖ approach, we also offer a ―remarkable product that the right people seek out.‖

S.W.O.T
Strength/ Weakness The business plan, thus far, has outlined and defined the MaxOut advantage as providing more time out of the gym, greater results and safer processes for our clients—in sum, an improved quality of life coupled with associated longevity. A challenge, however, with growing MaxOut to offer these unparalleled health and quality of life benefits to a greater population is the structure of the present operations. Currently, each MaxOut operations decision has to gain approval from all four managing partners. Convolution exists because all four have primary and demanding careers other than the management and guidance of MaxOut. Thus, slow decision processes and policy adoption have precluded and will continue to hamper the expedient and healthy growth of the MaxOut concept.

As the current Operations Director for MaxOut Strength Systems, Robert Kuypers is well versed in the daily operations processes and what decisions are necessary for tactical and strategic growth on both a unit and corporate level. Additionally, his time with the company has given him unique insite that will be used streamline the operations process. Despite his ability to identify and implement business-impacting decisions, he is unable to employ such practices without first soliciting the approval of all four managing partners. Such communications and decisions can take several days or weeks to finalize because of the demanding schedules associated with the partners’ primary careers. With the acquisition of MaxOut Strength Systems, Inc. by Patrick McGaha and Robert Kuypers, the convoluted operations challenge will be remedied and will allow for an expedited healthy cultivation of the MaxOut concept.

Opportunity/ Threat The health and fitness industry is exhibiting growth year over year and is realizing revenues in the billions of dollars annually. Industry revenues amounted to $15.9 billion in 2005 and memberships were up to 41.3 million, a membership increase of 25.9% since 2000. Additionally, personal training is currently the top revenue-producing amenity in fitness clubs and gyms nationwide, according to the IHRSA. Growth initiatives driven by industry organizations, such as the IHRSA, are aiming to increase industry memberships to 120 million members by 2010. Even if the industry falls short of the 120 million, the health and fitness industry has never seen a decline in growth; with the growing health MaxOut Studio 17

consciousness in the U.S. we can extrapolate that the industry will continue to exhibit strong gains. With the MaxOut demographic defined in the age range of 30-65, we are primarily targeting the Baby Boomer and Generation-X segments. These segments make up the largest and most fiscally powerful sectors of the U.S. population. The Baby Boomer generation now accounts for three quarters of the U.S. population and has a growing awareness of their mortality. Their doctors are mandating fitness programs and tailored diets

Management and Operations Organizational Structure
M A X O U T aximize your potential chieve your goals treme results ut perform all others nder no circumstances accept failure otal body development

MaxOut Strength Systems and its operations team direct the business with a model based on Principled Performance that provides flexibility in defining objectives. This allows for our experienced team to deftly manipulate all integral pieces of the MaxOut brand, thus keeping us ahead of all tumultuous market conditions.

Management Team
Primary and initial management at MaxOut Studio—Downtown Orlando consists of Patrick L. McGaha, Jr. and Robert W. Kuypers. Although major decisions will be made cooperatively between both parties, Patrick’s background lends a stronger focus to the administrative, marketing and operations aspects of the business. Patrick graduated from the University of Central Florida with a 3.7 GPA in a tripartite communications discipline (Mass Communication, Marketing and English). Coordinating events for a national event marketing firm based in South Florida provides the knowledge and detail focus needed in the ―guerilla‖ and ―grassroots‖ communications strategies that MaxOut Studio—Downtown Orlando is taking. Additionally, his professional success in leadership and sales has enabled him an expedited ascension through the corporate ―ranks‖ to his current position of Director of Admissions in the proprietary education industry. Patrick is currently pursuing a University of Florida MBA—focusing on entrepreneurship and marketing—through a program geared toward busy professionals. MaxOut Studio 17

Sharing the directional opportunities with Patrick, Robert W. Kuypers bring his successful career in business turnaround as well as a unique ability to generate large sales influxes with quite innovative concepts. Robert’s diverse background with degrees in Computer Science and Digital Media as well as accessory Minors in Sociology, Criminology, and Marketing lend him the tools needed to understand the multiple intricacies which come with developing a corporation. Before assuming the overall directorshiop of the current seed MaxOut, Robert worked with the burgeoning hospitality consulting company Quantified Marketing Group. Here he spear headed efforts to create one of the companies most profitable divisions. Bringing with him a track record never failing to exceed his objectives with Fortune 1000 and seed companies a like Robert looks to continue his suceess through this venture.

Together with his partner and friend Mr. McGaha, they will take the fortunes of MaxOut investors and shareholders alike and give them substantial returns. Summary
MaxOut’s unparalleled industry technology,lose, you'll increase fat. But strength training can "If you don't do anything to replace the muscle you coupled with its health benefit and time saving implications have caused the Winter Park at any age."reach its level of client help you preserve and enhance your muscle mass — studio to capacity. MaxOut Strength Systems, Inc. is the next step to introducing this unmatched -Edward Laskowski, M.D., a physical medicine and rehabilitation specialist at Mayo Clinic, strength training technology to those in the Greater and healthier” on mayoclinic.com were Downtown Orlando area who cited from “Strength Training: Get stronger, leaner previously too busy or thought that once-a-week training was not enough. Articles in several local publications have spawned greater interest from the Orlando community. One 1,800 square foot studio in Winter Park can no longer accommodate the growing demand for this efficient style of strength training. Strength training, fitness and a healthy lifestyle are passions long held by both Patrick and Kevin. Both having faced previous weight control issues and losing 75 lbs. and 80 lbs., respectively, they are familiar with the initial challenges and struggles associated with lifestyle changes. Likewise they are cognizant, yet eager, to accost the challenges and pitfalls associated with turning their passion into a revenue producing entity. Just as making a healthy lifestyle change and maintaining focus with strength training, they will overcome challenges and adapt accordingly to exhibit to their clients the value of dedication, diligence and determination. Additional support garnered from those at the Winter Park studio provides invaluable and intangible insight to overcoming obstacles they have already overcome. An emphasis on strong marketing, public relations and personal relationships bolster our confidence that MaxOut Studio—Downtown Orlando will quickly become recognized as the new industry standard for weight training and fitness results. MaxOut Studio 17

Appendix A

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Appendix B

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The Financials

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MaxOut Studio Corporate Initial Studio Start Up Costs
Concept Concept Site Rework Rent deposit Electrical Utilities deposit Carpeting/Flooring Rubber flooring Painting Interior signage Exterior signage Computer system Software TV's, stereo, furniture Restrooms w/showers Licenses & permits Security System Non-MaxOut equipment 10 MaxOut Boxes BioSpace machine Website Design Marketing Salaries Insurance Inventories Merchandise Uniforms Supplements 5,000 4,500 500 5,000 3,500 3,000 1,500 5,500 2,200 3500 17,500 38,000 1,000 500 40000 $0 cost for First Corp. Location 5,000 5,000 12,500 25,487 1,500 $50,000 for franchisees (paid by MaxOut Corp.) ($1,500: none the 1st year)

(4 salaries + taxes for 2 mos.)

750 1,000 400

Total Start-Up Costs
Optional Start-Up Costs Juice Bar Blenders Product Optional Total Start-Up

182,837

7500 2500 1000 11000

Total Start-Up Costs

193,837

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MaxOut Studio Franchisee Initial Studio Start Up Costs
Franchise Fee Rent deposit Electrical Utilities deposit Carpeting/Flooring Rubber flooring Painting Interior signage Exterior signage Computer system Software TV's, stereo, furniture Restrooms w/showers Licenses & permits Security System Insurance Non-MaxOut equipment 10 MaxOut Boxes BioSpace machine Website Design Marketing Salaries Inventories Merchandise Uniforms Supplements 15,000 5,000 4,500 500 5,000 3,500 3,000 1,500 5,500 2,200 3500 17,500 38,000 1,000 500 1,500 40000 50,000 5,000 3,000 12,500 25,487

(4 salaries + taxes for 2 mos.)

750 1,000 400

Total Start-Up Costs Optional Start-Up Costs Juice Bar Blenders Product Optional Total Start-Up Total Franchise Start-Up

245,837

7500 2500 1000 11000 256,837

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Break Even Analysis

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MaxOut Body Development Franchisee 3-Year Projected Profit & Loss Statement

P&L

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Board of Directors

Brett D. Fadeley
Mr. Fadeley currently serves as the CEO and Chairman of eSchool Solutions, a leading provider of management solutions specifically designed for the preK-12 education community. His past successful ventures include founding the first turnaround management organization in Orlando and is a co-founder of Business CPR, LLC, a turnaround and workout management firm and Venture Orlando, an early stage venture capital company. Brett is a recognized expert in turnaround management, financial management and complex commercial negotiations. His professional experience includes serving as an interim Chairman, CEO, President, member of the Board of Directors and/or interim Chief Financial Officer at multiple business enterprises. Mr. Fadeley has a diverse and varied background in assisting manufacturers, wholesalers, distributors and service companies in multiple industries. He has successful and proven leadership experience in providing turnaround management and profit improvement services. He is skilled in bankruptcy, workouts, creditor strategic planning, recapitalization plans, problem loan negotiations, financial due diligence, crisis management, vendor restructuring, expert witness consulting and taxing authority negotiations. For over ten years, Mr. Fadeley has focused his expertise on emerging and growth companies and companies in distress, by providing solutions—financial, strategic and organizational—that have enabled his clients to develop or regain long-term growth or achieve an appropriate exit strategy. Further, Mr. Fadeley has more than fifteen years of experience in commercial banking, primarily with large ―super-regional‖ banks. He has served as Senior Vice President of Corporate Banking and Regional Manager of Special Assets (problem loan department). A graduate of Southwestern University School of Law, Mr. Fadeley earned his Juris Doctorate in 1980. He is a recipient of the distinguished American Jurisprudence Award. He earned his Bachelor of Arts Degree with honors from Hartwick College in 1977. In 1985, he completed advanced commercial lending at the University of Virginia’s Darden Graduate School of Banking. He is published in Who’s Who in Finance and Industry. He is also published in the Orlando Business Journal for an article entitled, Firms With Problem Loans Should Adapt To Bank Rules. Mr. Fadeley is a licensed mortgage broker and has taught Business Law as an adjunct faculty member for Nova University. He is a former Chapter Chairman of the March of Dimes. Mr. Fadeley is an active member of the Central Florida Bankruptcy Law Association and the Turnaround Management Association in Florida and New York City.

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Dr. MacMillan
As co-captain of his collegiate power lifting team in 1972, Dr. Mac Millan developed a passion for weight training. His weight lifting experience combined with his medical training at the University of North Carolina, allowed him to apply eccentric body development principles to his ongoing exercise program. It was at this time that he realized the great value of modifying resistance during weight training. After many sleepless nights and countless hours in the lab, the counter balanced system of eccentric weight training was invented in 1984 and patented through the University of Florida. Though this seems like the end of the story it was merely the beginning, the machines stilled required untold amounts of testing before any one could safely use it. Fortunately for all of us by 1987, Dr. Mac Millan also began working with Arthur Jones, on the development of the MedX Lumbar Extension machine. Through this fateful collaboration, Dr. Mac Millan learned the science behind selectorized weight stack machine construction. As an associate professor in Orthopedic Surgery at the University of Florida, Dr. Mac Millan spent the next ten years studying the role of eccentrics in musculoskeletal rehabilitation. When he was recruited to enter private practice in 1998, opportunity and time became available which in turn let him develop his passion. The end result was a complete line of exercise equipment that provided the first ever full body eccentrically enhanced strength workout. This equipment became the core of the MaxOut Body Development, the only once a week strength training facility in the world! Now back at the University of Florida, Dr. Mac Millan is continuing his work on eccentric exercise. He is the strength advisor to the Sports Performance program and applies eccentric training principles to help university athletes. Presently, he is continuing research on the force-velocity relationship of eccentric muscle actions and continues to develop new machines for eccentric training.

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GORDON H. “STUMPY” HARRIS
Stumpy was born May 7, 1938 and was raised in Jacksonville where he graduated from Robert E. Lee High School in 1956. He went on to earn a degree in Math from the University of Florida in 1961. After teaching at Robert E. Lee from 1961 to 1962, Stumpy entered the University of Florida College of Law in the Fall of 1963 which he graduated from two years later finishing third in his class. Following graduation he taught at the law school for a year before joining the predecessor firm to Holland & Knight in Bartow, Florida where he worked until 1969. In 1970, Stumpy founded Gray, Harris & Robinson and significantly contributed to building it into a statewide law firm. In October, 2003, he founded Harris, Harris, Bauerle and Sharma to practice law with his son. Stumpy is a trial lawyer with extensive experience in the negotiation and trial of complex commercial cases of all kinds including condemnation, property rights, utilities, inverse condemnation, regulatory takings, and community redevelopment. He represents both property owners and taking authorities. He has handled in excess of 2,000 parcels ranging in values from a few hundred dollars to as much as $140,000,000. He has a statewide eminent domain practice. Stumpy is an ardent supporter of the Florida Gators and while President of the Alumni Association he had the opportunity to work with Dr. MacMillan on a regular basis. Seezing the opportunity to be part of the next major change in the body development industry, he became valued partner in 2003

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Jim Bruce
Mr. Bruce is the Founder of CFO Team a consulting firm focused on providing CFO and COO leadership to middle market clients. For the past 20 years Mr. Bruce has been considered an expert in providing financial and operational leadership serving in the roles of President, CFO and COO to various companies and industries. Since 1991, Mr. Bruce has managed and been involved with the investments of a high net worth family. Their investments have included airline, automotive, marine, restaurant, real estate, manufacturing, and manufactured housing communities. Mr. Bruce has planned and worked through many complex operational, financial and tax strategies as they have related to these industries and their controlled groups. During that time Mr. Bruce was named President of Classic Chevy International (CCI) an automotive after market supplier and publisher of Classic Chevy World magazine. CCI was Mr. Bruce’s first turn around. With the turn around successful and using a ―Grow Before You Go‖ strategy CCI launched a new division called Worldwide Camaro (WWC). WWC was a Camaro aftermarket part supplier and publisher of Camaro World magazine. Mr. Bruce successfully sold both CCI and WWC to The Harbour Group – a venture capital investment group in 2003. Mr. Bruce oversaw the acquisition of American Punch and Die (APD) from the founder and B&P Manufacturing from a Fortune 500 company. APD and B&P Manufacturing were then strategically combined to maximize synergies. In 2004, Mr. Bruce was named interim COO of First Class Coach and Equipment a Thomas bus dealership. Thomas bus is a division of Freightliner. First Class Coach and Equipment is Florida’s largest school bus dealer. Mr. Bruce’s role was to stream line the operations, increase profits and provide an exit strategy for the owner. During Mr. Bruce’s tenure the management team worked together, a non profitable service center was closed, and profits increased. The company was eventually sold to the management team in the form of an ESOP. Coach and Mentor - In 2001, wanting to give something back to his chosen profession Mr. Bruce became a coach and mentor through a program entitled ―CFO Team‖. CFO Team is a program where local CFO’s come together, once a month to learn and expand their knowledge on being a CFO. Since 2001 Mr. Bruce has been involved as a facilitator of CFO Team and has worked with some of Central Florida’s brightest CFO’s. Mr. Bruce began his career in the tax department at KPMG Peat Marwick, specializing in middle market companies and high net worth individuals. Mr. Bruce is a graduate of the University of Michigan, School of Business. His majors are in Finance and Accounting. He successfully sat and passed the CPA exam in August 1990.

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posted:10/29/2009
language:English
pages:27
Robert Kuypers Robert Kuypers Owner http://www.KuypersCreative.com
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