Peter La Fleur (Vince Vaughn) is the owner of Average Joe's Gym - a homey place that attracts an array of freaks and geeks such as Justin (Justin Long) who is hiding out from his high school's jocks and the odd pirate (Alan Tudyk) who offers to barter his treasure (once found) in place of membership fees. White Goodman (Ben Stiller) is the narcissistic, pumped up owner of the massive high-tech Globo Gym, whose company motto is "We're better than you... and we know it!".
Goodman hopes to bulldoze La Fleur's gym to make room for an auxiliary parking lot and with La Fleur not bothering to keep financial records or charge fees to his miniscule clientele of misfits, the bank - represented by the beautiful Kate (Christine Taylor) threatens to foreclose. Luckily, there's an upcoming dodgeball tournament that offers a cash prize of $50,000. So now the losers that populate Average Joe's must win the most cutthroat championship in the world! But as Goodman discovers their plan, he assembles his own squad - the Purple Cobras - and the death feud is on!