Arctic Elevation Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Arctic Elevation is a wellness franchise offering recovery and pain-relief treatments to optimize physical and mental well-being. Franchisees run the centers, managing equipment, sessions, and memberships.
FranchiseVerdict summary · 2026
A Arctic Elevation franchise requires a total initial investment of $177K – $763K. The 2026 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $177K – $763K
- 39th pct Healthcare
- Avg gross sales
- N/A
- Royalty
- N/A
- Units
- 3
- 11th pct Healthcare
- SBA charge-off
- N/A
Quick verdict · Healthcare · color = vs category peers
Green = favorable by >10% vs Healthcare avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $177K – $763K.
- RETURNSItem 21 states audited financial statements as of July 31, 2025 are attached as Exhibit B (FDD pages 63-77), but those exhibit pages are image-only/blank in the OCR text, so no balance-sheet or income-statement figures could be extracted. Franchisor is Arctic Franchising LLC (Washington LLC); this is an Area Representative Franchise FDD marked as a rough discussion draft.
- RISKVerdict C (Average), verdict score 39/100 (higher is better).
- DATANo Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Arctic Franchising LLC
- CEO title
- Chief Executive Officer and Managing Member
- David Kostroub
- Incorporated in
- WA
- HQ
- 1133 Lake Washington Blvd N, Ste. 80, Renton, WA 98056
- Auditor
- A&G LLP
- Audited financials
- Franchisor revenue
- $575K
- vs $0 prior year
Affiliated brands
- Arctic Elevation
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- David Kostroub
- Headquarters
- WA
- Founded
- 2024
- FDD year
- 2026
- States available
- 2
Can you afford it, and what does the money buy?
Entry cost runs 13% above the typical healthcare franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Working capital (3–6 mo) | $30K | $50K |
| Equipment, build-out, other | $147K | $713K |
| Total initial investment | $177K | $763K |
Source: Arctic Elevation 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $177K – $763K
- Top 40% of category vs category
- Liquid capital req'd
- $30K – $50K
- Middle of category vs category
- Franchise fee
- N/A
- Paid to franchisor at signing
- Royalty
- This is an Area Representative FDD: the AR's own unit pay…
- Ad fund
- -n/d
- Total fee load
- 2.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Technology fee | $499 |
| Transfer fee | $15K |
| Renewal fee | $0 |
| Total fee load | 2.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Arctic Elevation did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Arctic Elevation unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
24%
Below the 30–60% attractive-franchise band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
Item 21 states audited financial statements as of July 31, 2025 are attached as Exhibit B (FDD pages 63-77), but those exhibit pages are image-only/blank in the OCR text, so no balance-sheet or income-statement figures could be extracted. Franchisor is Arctic Franchising LLC (Washington LLC); this is an Area Representative Franchise FDD marked as a rough discussion draft.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 2.0% — below the Healthcare average of 8.8%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
Net unit growth of +50.0% over 3 years (1 opened, 0 closed).
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Healthcare averages
How Arctic Elevation Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 3
- Opened
- 1
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +50.0%
- Net unit change over 3 years
3-year detail · Item 20
- Opened (3yr)
- 2
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 4 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- Indiana
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Arctic Elevation presents HIGH RISK due to going concern status, undisclosed financials, predatory 50% royalty structure, microscopic unit count, and extreme investment variability—indicators of an unproven, financially distressed franchisor.
Litigation (Item 3)
0 case reference(s): 3 pending, 0 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · A&G LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 39 / 100 verdict
- 01HIGHGoing Concern status indicates franchisor financial distress or viability questions
- 02MEDNo Item 19 financial performance disclosure (Avg Revenue and Net Income not disclosed) prevents ROI validation
- 03MINORExtremely high royalty fee at 50% of standard rate is unsustainably extractive and suggests franchisor cash flow desperation
- 04MINORTiny system size (only 3 units) with 50% YoY growth is statistically insignificant and indicates pre-scale/unproven concept
- 05MINORWide investment range ($177K-$762K, 4.3x spread) suggests inconsistent unit economics or undefined startup scope
- 06MINOR20-year term locks franchisee into relationship with financially unstable franchisor for two decades
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 2.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 15 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 2,000,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 300 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Mandatory arbitration | No |
| Arbitration location | King County, Washington |
| Jury trial waiver | Yes |
| Governing law | WA |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 3 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 46 hrs
- On-the-job training
- 26 hrs
- Training location
- Renton, WA or other agreed-upon location
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
4 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Arctic Elevation · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Arctic Elevation franchise?
The total investment to open a Arctic Elevation franchise ranges from $177K – $763K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Arctic Elevation franchise owners earn?
Arctic Elevation does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the Arctic Elevation FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Arctic Elevation FDD and qualifies whose outlets they describe.
What is Arctic Elevation's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Arctic Elevation (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Arctic Elevation franchise locations are there?
As of their most recent FDD filing, Arctic Elevation has 3 total units in the United States, including 3 franchised units and 0 company-owned units. 1 new units were opened in the latest reporting year.
Is Arctic Elevation a good franchise to buy?
FranchiseVerdict rates Arctic Elevation as a C-grade franchise with a verdict score of 39 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent Arctic Elevation, you can request corrections or provide updated information.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.