About Verlo Mattress Franchise
Verlo Mattress is a retail mattress franchise that grants franchisees the right to operate one or more types of stores: a Retail/Assembly Store where custom mattresses and box springs are assembled, serviced, and sold at retail; a Retail Service Store where pre-assembled products and accessories are serviced and sold; or a Satellite Showroom where pre-assembled products are displayed and sold.
Franchisees sell directly to consumers for personal use, though commercial sales are also permitted.
Target customers are individuals and families seeking quality, custom-built mattresses and bedding accessories.
Verlo Mattress Franchise Cost & Fees
Minimum Investment
$109K
Average Investment
$259K
Maximum Investment
$408K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 | One-time payment upon signing |
| Royalty Fee | 5% of monthly Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | $500 or 1% of monthly Gross Sales, whichever is greater (may be increased up to 2.5% of Gross Sales) | National brand fund |
| Total Investment Range | $109,350 – $408,183 | Includes build-out, inventory, working capital |
The investment range of $109K–$408K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of monthly Gross Sales) and marketing fee ($500 or 1% of monthly Gross Sales, whichever is greater (may be increased up to 2.5% of Gross Sales)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $40,000 | $40,000 |
| Travel and Living Expenses during Initial Training | $1,400 | $9,983 |
| Architecture Fees | $250 | $3,500 |
| Leasehold Improvements and Related Costs | $20,100 | $89,700 |
| Rent and Security Deposits | $3,000 | $20,500 |
| FF&E | $20,400 | $42,900 |
| Freight | $1,700 | $2,500 |
| Opening Inventory and Supplies | $13,800 | $113,700 |
| Grand Opening Expense | $3,000 | $6,000 |
| Insurance | $400 | $1,600 |
| IT Fees Start-up | $3,800 | $8,100 |
| Lease Review Fee | $1,500 | $3,500 |
| Additional Funds - 6-12 Months | $10,000 | $77,100 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 |
| Renewal Fee | $4,000 (may be increased in franchisor's discretion) |
| Technology Fee | 1% of monthly Gross Sales, currently $500 per store per month |
| Audit Fee | Varies |
| Local Advertising Contribution | 6% of Gross Sales, measured on an annual basis |
| Advertising Cooperative Fee | Up to 4% of Gross Sales |
| Additional Assistance | Varies |
| Interest on Late Payments | Lesser of 18% per year or highest applicable interest rate allowed by law |
| Reimbursement of Costs | Varies |
| Insufficient Funds Fee | $100 plus any bank charges |
| Attorney's Fees | Varies |
| Inspection Costs | Currently $500 or costs of hiring third-party |
| VERLO sewn cover kits and other Components | Varies |
| Technology Maintenance | $500 annually |
| Relocation Fee | $10,000 |
| Convention and Training Fees | Up to $500, annually |
| Capital Modifications | Varies |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Minimum 4 days (Satellite and Retail Service); up to 27 days (Retail/Assembly) |
| Classroom Training | 23 hours |
| On-the-Job Training | 17 hours |
| Training Location | Corporate Headquarters, 301 N. Broadway St., Milwaukee, WI 53202 or another site designated by franchisor. Includes online training. |
| Additional Training | On-the-job training at franchisee's store within 30 days of opening. Additional on-site assistance for minimum 80 hours. Refresher courses on sales techniques, marketing, profitability, merchandise, sales management, and manufacturing. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | Franchisee will not receive an exclusive or any minimum territory. May face competition from other franchisees, company-owned outlets, or other channels of distribution. Franchise Agreement grants right to operate 1 initial Store at an approved location only. Franchisor may develop franchised, company-owned or affiliate-owned stores at any location, including locations near franchisee's store. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Term granted under then-standard franchise agreement |
| Renewal Fee | $4,000 (may be increased in franchisor's discretion) |
| Renewal Conditions | Minimum of 190 days' written notice; compliance with Franchise Agreement; possession of Store premises; renovation of Store premises; signing of then-current franchise agreement (which may contain materially different provisions); ancillary forms and agreements; payment of renewal fee/charges; and general release |
| Transfer Fee | $10,000 |
| Transfer Conditions | Franchisor approval required; qualified transferee; payment of transfer fee; compliance with Franchise Agreement and other agreements; current standards met at each Store; transferee not in violation of non-compete; debts paid; release of claims; old agreement assigned and assumed or new agreement signed; franchisor approves general terms of transfer; subordination of transferee's obligations; training completed; proper Store appearance; indemnification |
| Termination for Cause | 30 day cure period upon written notice of material breach; termination effective 60 days from such written notice upon failure to cure. Non-curable defaults include bankruptcy, insolvency, abandonment, material misrepresentations, failure to complete training, conviction of felony or misdemeanor, unauthorized transfer, and others. |
| Non-Compete Period | 2 years |
| Non-Compete Details | For 2 years after termination or expiration, no interest in any competing business: (a) within 100 miles of franchisee's Store(s), (b) within 100 miles of any Verlo Mattress Stores, or (c) that is franchising or licensing stores that offer similar goods |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Franchisee must participate personally in the direct, on-premises operation of any Verlo Mattress Store unless franchisor agrees otherwise in writing. If owned by an individual, owner is the on-premises manager. If owned by a legal entity, one of the owners will be on-premises manager. If owner does not participate directly, must hire a manager approved by franchisor who completes the training program. |
| Required Suppliers | Franchisees must purchase products and services from AF (Ahhfactor, LLC) and FWRW (FWR Wisconsin, LLC), which are manufactured by SBL, LLC, an entity affiliated with A. Lava & Sons, LLC. Must use franchisor's or designated supplier's Technology Systems. |
| Supply Restrictions | Exclusive Items must be purchased from franchisor or designated suppliers. Must buy VERLO sewn cover kits and other components from approved suppliers. 90% to 100% of total cost of initially establishing store and 80% to 90% of continuing operating costs must come from approved suppliers. |
| Franchisor Revenue from Suppliers | For fiscal year ended December 31, 2020, franchisor received $578,555 from franchisee purchases (approximately 28% of $2,058,772 total revenue). Also received $229,836 in supplier rebates contributed to National Marketing Fund. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not currently offer direct or indirect financing. We do not guarantee your note, lease, or obligation. |
Verlo Mattress Franchise Earnings — Item 19
Average Revenue
$1.0M
Median Revenue
$1.1M
Revenue Range
$551K – $2.6M
Sample Size
24 units
Past financial performance does not guarantee future results. Individual results will vary.
Verlo Mattress Litigation & Risk Flags
Clean Litigation RecordVerlo Mattress has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Verlo Mattress System Growth
Total Units
31
Franchised
26
Company-Owned
5
Verlo Mattress currently operates 26 franchised locations and 5 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2018 | 0 | 1 | 35 |
| 2019 | 0 | 1 | 34 |
| 2020 | 0 | 3 | 31 |
Transfers: 0 | Closures: 3
State Registrations
Registered in 13 states: CA, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$2.1M
Verlo Mattress Franchise — FAQ
The total investment to open a Verlo Mattress franchise ranges from $109,350 to $408,183, per their Franchise Disclosure Document. This includes the initial franchise fee of $40,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Verlo Mattress charges a royalty fee of 5% of monthly Gross Sales of gross sales, plus a $500 or 1% of monthly Gross Sales, whichever is greater (may be increased up to 2.5% of Gross Sales) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Verlo Mattress Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Verlo Mattress to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Verlo Mattress franchise owners report average revenue of $1.0M and median revenue of $1.1M. This is based on a sample of 24 units. Past performance does not guarantee future results.
Verlo Mattress has been franchising since 1989. The FDD shows an investment range of $109,350-$408,183, a 5% of monthly Gross Sales royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $40,000 and the total investment ranges from $109,350 to $408,183 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Verlo Mattress and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Verlo Mattress or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com