FranchiseVerdict
Arctic Elevation logo
FV-00173·CAUTIONExcellent81

Arctic Elevation

Health & Wellness - OtherFranchising since 2024Website
Investment
$177K – $763K
47th pct Other
Avg revenue
63rd pct Other
Royalty
50.0% (?)
Likely extraction error
Units
3
14th pct Other
SBA default

Bottom line

  • Total investment $177K – $763K including a $100K franchise fee, 50.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated CAUTION with a risk score of 75/100.
  • No 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

Legal entity
Arctic Franchising LLC
Incorporated in
Washington
HQ
1133 Lake Washington Blvd N, Ste. 80, Renton, WA 98056
Auditor
A&G LLP
Audited financials
Franchisor revenue
$575K
Most recent fiscal year

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one Arctic Elevation unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: personal services
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $177K–$763K
Working capital
$
FDD reports $30K–$50K

Unlevered ROIC · per unit

-32%

Negative

0%30–60% Yale band80%

Store EBITDA · annual
$-165K
EBITDA margin
-22.0%
Total invested
$510K
Payback
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Arctic Elevation franchisees appear to operate cold-weather or high-altitude tourism/recreation experiences (exact offering unclear from limited data). Day-to-day operations likely involve customer experience delivery, safety management, seasonal staffing, and equipment maintenance, though the specific service model is not detailed in available disclosures.

CEO
David Kostroub
Founded
2024
FDD year
2026
States available
2

Item 7 · what it costs

The Vitals

Total investment
$177K – $763K
All-in to open one unit
Liquid capital
$30K – $50K
Cash you must have on hand
Franchise fee
$100K
Royalty
50.0%
Percentage of Gross Revenue · typical 6–8%
Ad fund
2.0%
typical 3–5%
Total fee load
2.0%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
3
Opened
1
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Net growth (yr3)
+50.0%
Net unit change last year
2024
3+1
Franchised units
2025
2
Franchised units
2026
0
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 23 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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 23 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

No SBA loan data available for this brand.

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

75
Risk · 0-100
CAUTION75 / 100

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.

Score breakdown · what drove the 75 / 100 rating

  1. 01HIGHGoing Concern status indicates franchisor financial distress or viability questions
  2. 02MEDNo Item 19 financial performance disclosure (Avg Revenue and Net Income not disclosed) prevents ROI validation
  3. 03MINORExtremely high royalty fee at 50% of standard rate is unsustainably extractive and suggests franchisor cash flow desperation
  4. 04MINORTiny system size (only 3 units) with 50% YoY growth is statistically insignificant and indicates pre-scale/unproven concept
  5. 05MINORWide investment range ($177K-$762K, 4.3x spread) suggests inconsistent unit economics or undefined startup scope
  6. 06MINOR20-year term locks franchisee into relationship with financially unstable franchisor for two decades

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Population-based area
Protected territory
Yes
Initial term
20 years
Renewal term
15 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
No
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Washington

Item 11

Training & Operations

Classroom training
46 hrs
On-the-job training
26 hrs

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

32 numbers

Locked
(860) 240-••••
CT
(512) 475-••••
TX
(517) 373-••••
MI

One-time purchase · CSV download · Validation questions included

FDD download

Arctic Elevation · FDD (2026) PDF

Single-page checkout · instant download · CSV export of contacts available separately above