MXR co-founders Terry Sherwood and Keith Barr met as high school students at Rush-Henrietta Senior High School in Rochester, New York. Together they started Audio Services, an audio repair business, where they repaired stereos and other music equipment in their rented basement apartment. In 1974 this experience led them to form MXR and begin producing their first original effect pedal design, the Phase 90, quickly followed by the Distortion Plus, Dynacomp, and the Blue Box.
The MXR trademark is now owned by Jim Dunlop, which continues to produce the original effects units along with new additions to the line.