Verlo MattressFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Verlo Mattress franchise requires a total initial investment of $239K – $784K, including a $50K franchise fee and an ongoing 5.0% royalty[2]. Per the 2024 FDD, average unit revenue was $1.6M[2]. SBA 7(a) loans show a 0.0% charge-off rate across 11 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $239K – $784K
- 24th pct Retail
- Avg gross sales
- $1.6M
- 18th pct Retail
- Royalty
- 5.0%
- 6th pct Retail
- Units
- 33
- 14th pct Retail
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Retail · color = vs category peers
Green = >15% above Retail 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
Each dollar invested generates 3.1x in gross revenue, well above the typical 1.5-2.5x range.
Only 0.0% of 11 SBA loans charged off, well below the 16% franchise average.
Franchising since 1989. Systems this mature have refined operations and brand recognition.
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).
- Verdict A (Top Quintile) with a risk score of 52/100. SBA loan charge-off rate of 0.0% across 11 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- FWR, LLC
- Parent company
- FWR Holdings, LLC
- Incorporated in
- WI
- HQ
- 301 N. Broadway Street, Suite 300, Milwaukee, Wisconsin 53202
- Auditor
- CliftonLarsonAllen LLP
- Audited financials
- Franchisor revenue
- $2.2M
- vs $2.4M prior year
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.
- CEO
- Dirk Stallmann
- Headquarters
- WI
- Founded
- 1958
- FDD year
- 2024
- States available
- 7
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $30K | $78K |
| Equipment, build-out, other | $159K | $656K |
| Total initial investment | $239K | $784K |
Source: Verlo Mattress 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$121K
7.5% margin
Unlevered ROIC
21%
EBITDA / total invested capital
Payback
4.7 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $239K – $784K
- Better than avg vs category
- Liquid capital req'd
- $30K – $78K
- Better than avg vs category
- Franchise fee
- $50K – $50K
- Better than avg vs category
- Royalty
- 5.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 2.5%
- typical 3–5%
- Total fee load
- 7.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 2.5% of gross sales |
| Technology fee | $500 |
| Transfer fee | $10K |
| Renewal fee | $5K |
| Total fee load | 7.5% of rev |
Financial Performance
- Avg gross sales
- $1.6M
- Per unit, per year
- Median gross sales
- $1.4M
- Item 19 type
- Franchisee
- Sample size
- 13 units
- vs category median 49 · small
- Range (low → high)
- $578K→$2.9M
- Cohort dispersion (min → max)
- Transparency
- 7 / 5
- vs category median 2 / 5 · above
Compared against 304 Retail brands
vs Retail averages
How Verlo Mattress Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 33
- Opened
- 2
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 5
- Corporate units in the system
- % franchised
- 85%
- vs corporate-owned
- Net growth (yr3)
- +7.4%
- Net unit change last year
- 3-yr CAGR
- +7.4%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
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 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.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 11
- Loan volume
- $6.1M
- Median loan
- $603K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 6
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Verlo Mattress's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 6 lenders with concentration factor
- Per-state charge-off rates across 6 states
- Startup risk premium and job creation velocity
- 4-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
With a 0.0% charge-off rate across 11 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
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.
Audited financials (Item 21)
Yes · CliftonLarsonAllen LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 52 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Driving distance radius |
| 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 | 90 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Wisconsin |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 133 hrs
- On-the-job training
- 12 hrs
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
28 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Verlo Mattress · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Verlo Mattress franchise?
The total investment to open a Verlo Mattress franchise ranges from $239K – $784K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Verlo Mattress franchise owners earn?
According to Item 19 of the Verlo Mattress FDD, the average gross sales per unit is $1.6M. The median is $1.4M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Verlo Mattress's franchise failure rate?
Based on SBA 7(a) loan data, Verlo Mattress has a charge-off rate of 0.0% across 11 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Verlo Mattress franchise locations are there?
As of their most recent FDD filing, Verlo Mattress has 33 total units in the United States, including 27 franchised units and 5 company-owned units. 2 new units were opened in the latest reporting year.
Is Verlo Mattress a good franchise to buy?
FranchiseVerdict rates Verlo Mattress as a A-grade franchise with a risk score of 52 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.
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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.