Risk Score
Pending analysis
Investment Range
$239,489 - $784,240
Franchise Fee
$25,000
Total US Locations
33
Business Summary
Verlo Mattress operates retail stores that specialize in selling custom mattresses and box springs, known as Products, along with various accessory items. Franchisees can choose to open a Retail Assembly Store, where they will assemble and sell these custom Products and Accessories, or a Retail Only Store, which focuses solely on selling pre-assembled Products and Accessories.
Corporate History
Verlo Mattress, operating as FWR, LLC, was formally organized in Wisconsin in June 2011. The brand's origins trace back to its first predecessor, Verlo Mattress Company (VMC), an Illinois general partnership established in 1958, which manufactured and retailed mattresses. VMC transferred its business to Verlo Mattress Company, Inc. (VMC, Inc.) in 1978. VMC, Inc. began franchising Verlo Mattress Stores in 1989. In October 2000, the franchise operations were transferred to Verlo Mattress, LLC (VMFS). FWR, LLC then purchased the assets of VMFS in December 2011, continuing the Verlo Mattress brand and its franchising operations.
Financial Overview
Investment Range
$239,489 - $784,240
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$50,000
Royalty %
5%
Equipment Costs (Low)
$86,800
Equipment Costs (High)
$422,800
Working Capital
$54,018
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Verlo Mattress's financial statements indicate that the company incurred net losses in both 2023 and 2022. To support its working capital and ongoing operations, Verlo Mattress obtained $500,000 in funds and a letter of commitment from its majority member. This commitment ensures continued funding for at least the next year and supports the company's growth as it signs new franchise agreements. The auditor's report does not include a going concern qualification.
Financing Details
Verlo Mattress does not offer direct or indirect financing to franchisees and does not guarantee their notes, leases, or other obligations. Franchisees are responsible for securing their own funding.
Performance Metrics
Total US Locations
33
Franchised Units
29
Corporate Units
6
Avg Square Footage
7,050
Franchising Since
1989
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Verlo Mattress has no litigation to report in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
Verlo Mattress has no bankruptcy history to report in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, Verlo Mattress franchisees must provide a minimum of 190 days' written notice before the current agreement expires. They must be in full compliance with their Franchise Agreement and possess the store premises. Renewal also requires renovating the store premises, signing the franchisor's then-current franchise agreement (which may have different terms), executing ancillary forms and agreements, paying a renewal fee and charges, and signing a general release of claims against Verlo Mattress.
Training & Support Program
Franchisor Assistance
Verlo Mattress provides franchisees with extensive support both before and after their stores open. Before opening, Verlo Mattress offers electronic access to its confidential manuals, comprehensive initial training for the franchisee and general manager (which can be in-person or remote), and potential on-site assistance for retail and production layout and product assembly. Verlo Mattress also guides franchisees in selecting and approving a site, approves grand opening advertising plans, and provides standard construction and remodeling plans. After opening, Verlo Mattress continues to offer electronic access to updated manuals covering methods, standards, products, purchasing, advertising, and training. Franchisees receive advice on operational or quality control issues identified through reports or inspections, and new managers may be required to attend training. Verlo Mattress also administers the National Marketing Fund and provides approved marketing materials, conducts regular store inspections, and offers additional guidance upon reasonable request, which may incur a fee.
Initial Training Hours
133
Training Location
Training facility in Greenfield, Wisconsin, or another designated site/platform (in person or remote)
Ongoing Support
After opening, Verlo Mattress franchisees receive ongoing assistance including potential additional on-site support for retail and production layout. Verlo Mattress also provides continuous electronic access to updated manuals covering methods, standards, product development, purchasing, advertising programs, and training. The franchisor offers advice on operational and quality control issues identified through reports or inspections and may require new managers to attend training. Franchisees receive standard plans for remodeling and maintenance, as well as forms for financial statements. Verlo Mattress administers the National Marketing Fund, providing approved advertising materials, and conducts periodic store inspections. Additionally, regional or national conventions may be held, which can include refresher training.
Franchise Requirements
Ideal Candidate Profile
Verlo Mattress seeks franchisees who will personally participate in the direct, on-premises operation of their store. If the franchise is owned by an individual, they must be the on-premises manager. For entity owners, one owner must serve as the on-premises manager. General managers, if hired, must be approved by Verlo Mattress and meet the same evaluation criteria as franchise owners, including a background check for criminal and civil litigation history and bankruptcy.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Hands-On
Territory Type
Protected
Territory Size Requirements
Verlo Mattress territories are typically defined by a 4-mile driving radius around the store location. This may be adjusted for major metropolitan or densely populated areas, or further defined by geographic boundaries, streets, or other criteria as determined by Verlo Mattress.
Staffing Notes
Verlo Mattress requires franchisees to either personally serve as the on-premises manager for their store or hire an approved general manager who successfully completes the franchisor's training program and passes a background check. Additional training for all managers and employees is the franchisee's responsibility. Certain key personnel, including owners, officers, directors, and managers, who access proprietary information may also be required to sign confidentiality and non-competition agreements.