Arctic Elevation Franchise Cost, Revenue & Review 2026
- Investment
- $309K – $708K
- Disclosed sales
- $612K
- gross sales, not profit
- SBA charge-off
- Not SBA-matched
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 $309K – $708K, including a $60K franchise fee and an ongoing 8.0% royalty[2]. Per the 2025 FDD, average unit revenue was $612K[2]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Limited operating history: franchising since 2024. A system this young has fewer than three years of Item 20 outlet history and rarely enough SBA loans for a charge-off rate, so its grade rests on less evidence than an established system's. Read its Item 20 tables and talk to its first franchisees before relying on the grade. Other new franchisors
Sources, dates and evidence
FDD issued: 2025 filing · Data extracted: · Last cited check: · Staleness risk: medium - a newer filing may exist
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $309K – $708K
- 58th pct Healthcare
- Avg gross sales
- $612K
- Incl. company outlets13th pct Healthcare
- Royalty
- 8.0%
- 57th pct Healthcare
- Units
- 9
- 28th pct Healthcare
- SBA charge-off
- N/A
Quick verdict · Healthcare · color = vs category peers
Green = favorable by >10% vs Healthcare median · 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 $309K – $708K including a $60K franchise fee, 8.0% ongoing royalty.
- RETURNSAverage unit revenue of $612K/year (median $621K) (includes company-owned outlets).
- RISKVerdict B (Above average), verdict score 51/100 (higher is better).
- GROWTHPositive: net +3 franchised outlets in the latest year (1 opened, 0 closed); 4 signed but not yet open (Item 20).
- EARLYEmerging franchise: only 2 years of franchising with 9 units. Early-stage systems carry higher risk but may offer better territory availability.
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
- Most recent fiscal 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
- 2025
- States available
- 2
Can you afford it, and what does the money buy?
Entry cost runs 58% above the typical healthcare franchise.
Source: FDD 2025 · Items 5–7
published investment is a single Arctic Elevation wellness center. The franchisor also offers an area-representative grant under a separate FDD (Arctic_WI.pdf, 2026): fee $100,000-$650,000, estimated initial investment $177,250-$762,500; that offering is not priced on this page.
Full Item 7 breakdown18 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee (Note A) | $60K | $60K | |
| Training Expenses (Note B) | $1K | $2K | |
| Real Property (Note C) | $3K | $10K | |
| Equipment (Note D) | $120K | $220K | |
| Fixtures, other fixed assets, remodeling, and decorating costs (Note E) | $12K | $22K | |
| Inventory to Begin Operating (Note F) | $1K | $5K | |
| Security Deposits, utility deposits, business licenses and other prepaid expenses (Note G) | $5K | $15K | |
| Leasehold Improvements (Note H) | $70K | $250K | |
| Architectural and Engineering (Note I) | $10K | $20K | |
| Computer Hardware & Software | $2K | $4K | |
| Signage | $2K | $13K | |
| Supplies & Misc. | $200 | $800 | |
| Pre-Launch Marketing | $5K | $5K | |
| Launch Marketing | $5K | $10K | |
| Additional Training (Note K) | $0 | $1K | |
| Insurance (Note L) | $3K | $7K | |
| Legal & Accounting Fees (Note M) | $1K | $15K | |
| Additional Funds - 6 months (Note N) | $10K | $50K | |
| Total initial investment | $309K | $708K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $309K – $708K
- Middle of category vs category
- Liquid capital req'd
- $10K – $50K
- Top 40% of category vs category
- Franchise fee
- $60K – $60K
- Middle of category vs category
- Royalty
- 8.0%
- typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 2.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 8.0% of gross sales |
| Marketing / ad fund | 1.0% |
| Technology fee | $499 |
| Transfer fee | $5K |
| Renewal fee | $0 |
| Inventory (initial) | $1K – $5K |
| Total fee load | 2.0% of rev |
A 2.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
What do units actually make?
Average unit sales run 9% below the healthcare norm.
Includes company-owned outlets
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Arctic Elevation until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$538K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Arctic Elevation unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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: 2025 FDD
Financial Performance
Includes company-owned outlets
- Avg gross sales
- $612K
- Per unit, per year
- Median gross sales
- $621K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- Historical Average/Median/Lowest/Highest Gross Sales for the 12 months ended September 30, 2025 for the 3 Arctic Elevation studios (1 affiliate-owned, 2 franchised) open at least one year; also average/median/lowest/highest active-member counts
- Sample size
- 3 outlets
- vs category median 20 · small
- Range (low → high)
- $392K→$814KCited, not corroborated — printed on page 61 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2025
- The FDD edition these figures were read from
Compared against 162 Healthcare brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $612K/year in gross sales. Revenue-to-investment ratio: 1.2x. Includes company-owned outlets.
Fee burden
Total ongoing fee load of 2.0% — below the Healthcare median of 8.0%.
Disclosure
Transparency score 0/10 — minimal disclosure beyond the required average. Hard to judge the distribution of outcomes across units. Sample size of 3 outlets — treat as directional only.
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 medians
How Arctic Elevation Compares
Category median of published Healthcare brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 9
- 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
- N/A
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +50.0%
- Net unit change over 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 4
- 0.44 per open outlet · Item 20 Table 5
- Projected new
- 15
- Franchisor's next-year forecast
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).
Where the owners are · Item 20 owner list
4 current owners across 4 states.
- CA 1
- FL 1
- NM 1
- WA 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
Item 3 states that no litigation is required to be disclosed. No pending action, prior action or government proceeding is listed against the franchisor or any Item 2 person.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · A&G LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Audited financial statements of Arctic Franchising LLC (the franchisor itself; no parent) as of and for the first fiscal period August 1, 2024 through July 31, 2025, audit opinion by Drenchko Stephanie, CPA (Ballston Lake, NY); Exhibit B pages are image-only and the statement footers say 'independent accountant's review report' although the report is an audit opinion.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
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 51 / 100 verdict
- 01MINORExtremely high royalty fee at 50% of standard rate is unsustainably extractive and suggests franchisor cash flow desperation
- 02MINORTiny system size (only 3 units) with 50% YoY growth is statistically insignificant and indicates pre-scale/unproven concept
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 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| 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
Item 3 states that no litigation is required to be disclosed. No pending action, prior action or government proceeding is listed against the franchisor or any Item 2 person.
Items 10, 11
Training & Operations
- Classroom training
- 16 hrs
- On-the-job training
- 28 hrs
- Training location
- Online/Remote modules; Arctic Franchising Headquarters or Company-Owned Unit in Renton, WA; Franchisee New Unit
- 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
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 $309K – $708K, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Arctic Elevation franchise owners earn?
According to Item 19 of the Arctic Elevation FDD, the average gross sales per unit is $612K. The median is $621K. Important context: Includes company-owned outlets. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Arctic Elevation?
Arctic Elevation is franchised by Arctic Franchising LLC. Source: FDD Item 1, 2025 filing.
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 9 total units in the United States, including 6 franchised units and 3 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 B-grade franchise with a verdict score of 51 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.