FranchiseVerdict
ARCTIC ELEVATION™ logo
FV-00174·MODERATEExcellent81

Arctic Elevation™

Health & Wellness - OtherFranchising since 2024Website
Investment
$320K – $618K
68th pct Other
Avg revenue
63rd pct Other
Royalty
10.0%
67th pct Other
Units
1
2nd pct Other
SBA default

Bottom line

  • Total investment $320K – $618K including a $70K franchise fee, 10.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated MODERATE with a risk score of 65/100.
  • Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.

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, Washington 98056
Auditor
Drenchko Stephanie, CPA
Audited financials
Franchisor revenue
$0
vs $0 prior year
⚠ Going-concern note
Disclosed in FDD 2024
Status as of 2024; may have been resolved in a later filing we don't yet have.

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: $320K–$618K
Working capital
$
FDD reports $10K–$50K

Unlevered ROIC · per unit

29%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$143K
EBITDA margin
19.0%
Total invested
$499K
Payback
42 mo
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 operate a cold-therapy or altitude-training wellness facility (likely featuring cryotherapy, hyperbaric chambers, or high-altitude simulation). Daily operations include client intake/management, equipment maintenance, staff supervision, marketing/sales, and compliance with health/safety regulations.

CEO
David Kostroub
Founded
2024
FDD year
2024
States available
1

Item 7 · what it costs

The Vitals

Total investment
$320K – $618K
All-in to open one unit
Liquid capital
$10K – $50K
Cash you must have on hand
Franchise fee
$70K
Royalty
10.0%
Gross Revenues · typical 6–8%
Ad fund
1.0%
typical 3–5%
Total fee load
11.0%
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
1
Opened
0
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
1
Corporate units in the system
% franchised
0%
vs corporate-owned
2022
0±0
Franchised units
2023
0
Franchised units
2024
0
Franchised units

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

Item 12 · 1 state reported

The Territory Map

FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.

1

states with franchisees (per FDD Item 12)

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

65
Risk · 0-100
MODERATE65 / 100

Pre-revenue or single-unit franchise with undisclosed profitability metrics, high capital requirements, and insufficient operating history to validate business model viability.

Score breakdown · what drove the 65 / 100 rating

  1. 01MINOROnly 1 existing unit makes system validation impossible and suggests either brand new or failed expansion
  2. 02MEDNo average revenue or net income disclosed in FDD Item 19 — cannot assess ROI or profitability benchmarks
  3. 03MEDHigh initial investment range ($319.5K–$618.3K) with 10% royalty burden but no disclosed earnings data to justify costs
  4. 04MINOR5-year term is shorter than industry standard (typically 10 years), creating renewal uncertainty and higher ramp-up pressure
  5. 05MINOR$70,000 franchise fee is moderate-to-high relative to single-unit system credibility
  6. 06MINORSingle franchisee cannot provide meaningful performance comparisons or system health indicators

Severity inferred from the FDD text · not a regulatory classification

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

Contract & Territory Detail

Territory
Households
Protected territory
Yes
Initial term
5 years
Renewal term
5 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
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Washington

Item 11

Training & Operations

Classroom training
41 hrs
On-the-job training
42 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

1 numbers

Locked
(425) 400-••••
WA

One-time purchase · CSV download · Validation questions included

FDD download

ARCTIC ELEVATION™ · FDD (2024) PDF

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