Bottom line
- Total investment $239K – $784K including a $50K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.6M/year (median $1.4M).
- Rated STRONG with a risk score of 41/100. SBA loan default rate of 0.0% across 24 loans (below the industry average).
Item 1 · who you're contracting with
The Franchisor
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 Verlo Mattress unit return on the cash you put in?
Unlevered ROIC · per unit
21%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Verlo Mattress units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$161K
on $804K purchase
Total debt
$643K
SBA $0.4M + senior + seller note
Overview
About
Verlo franchisees operate retail mattress showrooms selling sleep products directly to consumers. Day-to-day operations include customer consultations, in-store demonstrations, sales transactions, and managing local marketing efforts to drive foot traffic and build brand awareness in their protected territory.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 6 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 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Verlo presents moderate-to-cautionary risk due to absent profit disclosure, anemic unit growth, and unclear franchisor financial health, making ROI validation impossible before investment.
Score breakdown · what drove the 41 / 100 rating
- 01MINORNo net income disclosure (Item 19) prevents accurate ROI calculation and profit visibility
- 02MINORSlow unit growth of 7.4% YoY suggests market saturation or franchisee dissatisfaction in mattress retail
- 03MINORWide investment range ($239K-$784K) indicates inconsistent buildout costs and unclear capital requirements
- 04HIGHGoing Concern status is FALSE, which may indicate franchisor financial instability or reporting issues
- 05MEDHigh royalty rate (5%) on monthly gross sales with undisclosed net income creates profitability uncertainty
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
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
28 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Verlo Mattress · FDD (2024) PDF