Arctic ElevationFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Arctic Elevation franchise requires a total initial investment of $177K – $763K, including a $100K franchise fee and an ongoing 0.5% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: C. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $177K – $763K
- 39th pct Healthcare
- Avg gross sales
- N/A
- 48th pct Healthcare
- Royalty
- 0.5%
- 1st pct Healthcare
- Units
- 3
- 11th pct Healthcare
- SBA default
- N/A
Quick verdict · Healthcare · color = vs category peers
Green = >15% above Healthcare avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Started franchising in 2024. Newer systems carry more uncertainty but may offer better territories.
Bottom line
- Total investment $177K – $763K including a $100K franchise fee, 0.5% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict C (Average) with a risk score of 68/100.
- 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
- 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
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
- Headquarters
- WA
- Founded
- 2024
- FDD year
- 2026
- States available
- 2
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $100K | $100K |
| Working capital (3–6 mo) | $30K | $50K |
| Equipment, build-out, other | $47K | $613K |
| 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
- Better than avg vs category
- Liquid capital req'd
- $30K – $50K
- Near category avg vs category
- Franchise fee
- $100K – $650K
- Below avg, review vs category
- Royalty
- 0.5%
- percentage_of_gross · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 2.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 0.5% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $499 |
| Transfer fee | $15K |
| Renewal fee | $0 |
| Total fee load | 2.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Healthcare averages
How Arctic Elevation Compares
Unit growth
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
3-year detail · Item 20
- Transfers (3yr)
- 0
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).
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.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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: No
- Must buy proprietary products: No
Score breakdown · what drove the 68 / 100 rating
- 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 15 years |
| Allowed renewalsℹ | 1 |
| Territory type | Population-based area |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Washington |
| 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
- On-site and corporate
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
32 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, with an initial franchise fee of $100K. 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 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 0 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 risk score of 68 out of 100, 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
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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.