Frequently Asked Questions
About the Verlo Franchise Opportunity

  • What are the business qualifications for becoming a Verlo Franchisee?
      The following are some key qualities we look for in selecting franchisees:

      -Entrepreneurial spirit and desire for local community involvement
      -Ability to manage, motivate, train, and lead people
      -High personal integrity and customer service orientation
      -Full time effort to building and successfully operating the business
      -Willingness to learn and incorporate Verlo programs, values, and systems
      -Sufficient financial resources and management ability to adapt and grow the business
      -Sales and/or operations orientation as needed to operate effectively

  • Does Verlo actually build the beds at the store location?
      Yes, Verlo makes all of its sleep sets at its Mattress Factory Stores. This eliminates the middle man and improves operating margins, quality control, and customer service, giving Verlo a unique competitive advantage versus most traditional mattress retailers.

  • What is the Franchise Disclosure Document?
      The Franchise Disclosure Document (FDD) is a document that explains all of the key points relating to the franchise relationship. This includes requirements of the franchisee and franchisor, terms and conditions of the franchise agreement and other valuable information regarding the franchise offering. You will receive the FDD when we have determined that you meet our preliminary guidelines as a qualified franchise candidate.

  • What are the size requirements for a Verlo franchise?
      Current facilities average about 8,000 square feet for a factory store and 3,000 square feet for a satellite store. Sizes will vary depending on the market potential and availability of suitable sites within a market area. We will review smaller concepts on a case-specific basis.

  • What are the minimum financial requirements to obtain a franchise?
      In order to qualify for the necessary commercial financing, Verlo candidates generally need to have a minimum total net worth of $350,000 including $75,000 of liquid net worth. Candidates will also have an acceptable credit history and access to the necessary financing in line with the anticipated investment. Further information regarding the investment is available in our FDD.

  • Will Verlo finance the cost of developing franchises?
      Verlo does not directly finance franchisees; however, we will help in identifying commercial sources of financing to facilitate the process, including SBA-approved lenders and 401K based providers.

  • Could I receive funding from a friend, relative or private investor?
      Yes; however, this arrangement constitutes a partnership. All partners must also qualify and meet the criteria we have established for those individuals having an ownership interest in a Verlo Franchise.

  • Are there opportunities in my geographic area of interest?
      Geographic availability can change quickly due to the interest we have received from candidates seeking franchises. We encourage you to complete our franchise application, and we will respond to you as soon as possible regarding your candidacy and geographic areas of preference.

  • Does Verlo offer Area Development or Master Franchise agreements?
      Yes, we have Area Development and Master Franchise agreements available for selected markets. Master Franchise Agreements can be acquired for those markets located outside of the US. For the domestic market, Verlo does not offer master franchising but will consider area development agreements. Area development fees will be charged as stipulated in the FDD. Area development and master franchise candidates will be evaluated on a case-specific basis to determine the optimum form of agreement and corresponding development schedule.

  • What is the initial franchise fee for a Verlo franchise?
      $50,000 for a ten-year MFS franchise agreement or $15,000 for a 5-year RFS franchise agreement

  • What is the continuing royalty fee?
      5% of store’s total gross revenues

  • What are the required marketing and advertising fees a franchisee must pay?
      Up to 1% of the store’s total gross revenue. These funds will go towards our overall national advertising plan aimed at building awareness and driving new business to our brand and your location.

  • How long will it take to open a Verlo Mattress Factory Store?
      The length of time to open a store will vary depending on the market, availability of suitable sites, build-out period, local permitting requirements, etc. Once a site is secured, the process is normally completed within 60 days for a Retail Franchise Store and within 90 days for a Mattress Factory Store.

  • What can I expect to earn as a Verlo franchisee?
      There is no “one size fits all” answer. Variables such as regional costs, size of location, market potential, competition, and management style of the operator can all vary significantly. We encourage all potential franchisees to employ a full due diligence process in evaluating the Verlo franchise. This should include investigating all sources of information, including Verlo franchises in operation, as well as all information and industry trends available from various third party sources.

  • Does Verlo require training for its Franchisees?
      Yes. We provide a combined classroom and in-store franchise training and orientation program. Franchisees and key members of their staff will also be required to participate in our fundamental training courses to provide the necessary foundation in opening and then managing store operations. We also have online training to encourage continuous learning. Our field specialists in sales and operations management also provide in-store training on an ongoing basis to franchisees and their personnel.

  • What type of support does Verlo offer its Franchisees?
      With over 50 years in business, Verlo has an experienced team in place to support all aspects of your business. We provide continuing support in all key areas of managing the business including:

      -Regional and local advertising, branding, and overall marketing programs
      -Product knowledge and merchandising guidelines
      -Verlo Supplier Program tailored to needs of your business
      -Ongoing classroom and in-store sales and operations training
      -Customized retail management system to carefully track key business metrics
      -Consultation on key drivers of store operations and profitability
      -Growth plans for new stores including development strategies and lease negotiation
      -Business and financial management support including P&L analysis and review

  • Can I receive demographic information on a particular area?
      Yes; the Internet has allowed cities, counties and states to provide instant access to information you will need when considering an area for development. In addition, Verlo can provide demographic and market data on selected areas along with real estate broker contacts to facilitate the site qualification process.
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