VERLO MATTRESS

Item 7 lays out the initial investment from $464,685 to $784,240, covering build-out for either assembly or retail-only stores, inventory, and training—steep for specialty retail but backed by a $50,000 franchise fee. Ongoing costs include 5% royalties plus $500 monthly for national marketing (capped at 2.5% of sales) and another $500 for tech access (up to 1%). With 29 franchised locations and 5 corporate, the system grew just 4% from 27 to 28 units last year, projecting 19 new ones ahead. SBA data shows 12 loans averaging $511,917, hinting at accessible financing for qualified buyers.

Item 19 shines here: average gross revenue clocks $1,608,140, median $1,385,179, with estimated profits swinging wildly from -$221,159 to $1,457,944. That variance screams execution risk—top stores crush it on custom sales to homes and some commercial, but laggards bleed cash after fees and ops. At 34 total locations, Verlo's no giant, but steady franchising since '89 and positive projections suggest resilience in bedding retail. If you nail local marketing and assembly efficiency, the upside looks real; otherwise, it's a tough mattress to flip.