Franchise Deep Dive: Verlo Mattress Franchise Costs, Fees, Profit and Data

REPORTED COST TO GET IN: $269,684–$714,362

REPORTED ROI (Item 19): N/A

Verlo Mattress is a direct-to-consumer franchise that manufactures adjustable mattresses for specific sleep comfort needs. It is owned by Marcus Investments, a Marcus Family company based in Milwaukee, Wisconsin.

Verlo was started in 1958 in Wisconsin by two friends who began making custom-crafted mattresses for their furniture store in Illinois. Their mattresses soon proved even more popular than their furniture. Shortly after, the brand’s headquarters was relocated to Wisconsin. The company was renamed by combining the first names of their wives: Verna and Lois.

Company growth

Verlo has grown over the years from a single furniture store to over 30 showrooms across the U.S. Despite having a larger footprint, the franchise has remained committed to the community-focused values that it was founded on. In fact, every Verlo store and showroom is owned and operated by a member of the local community. Many of the franchise’s owners have been serving their region for over 20 or 30 years.

In October 2023, Verlo announced that it signed three development plans, totaling 24 new locations nationwide. The franchise has new development deals that include six locations coming to both Denver and Phoenix; five locations in Dallas, Texas; three additional locations planned for Houston; and two locations to be opened in both Boise, Idaho, and Raleigh, North Carolina.

“Our goal is to provide the premier, affordable mattress service that can help provide every unique need with the importance of being locally crafted in the area,” said Dirk Stallmann, president of Verlo Mattress. “We are thrilled by our continued growth, and we hope to continue to serve more areas throughout the nation.”

The Verlo business model combines building personalized mattresses locally and selling them directly to the customer. This is designed to cut out the middleman markup and allows Verlo to offer a Lifetime Comfort Guarantee. According to the Lifetime Comfort Guarantee, Verlo will adjust the comfort of its mattress for as long as the customer owns it. It will adjust it one time in the first year for free on most models.

Each mattress is built individually, allowing Verlo to customize them according to customers’ needs and preferences. This ensures a more personalized sleep experience, while also reducing the shipping costs and the environmental impact of the mattresses.

Business model

Franchisees have two different store opportunities:

• Factory Store with Retail Store: With this model, the total space is approximately 7,000 to 10,000 square feet. This space is divided into three distinct areas: the showroom, factory/assembly and warehouse areas. Franchisees will need approximately four full-time employees for this size store.

• Retail Store: This model requires approximately 2,500 to 3,500 square feet of space and is supported by a factory store. Franchisees will need approximately one or two additional full-time employees when added to a franchise with a factory store.

Additionally, franchisees can either have a manager-run operation or be the owner-operator of the location.

Earnings for Verlo franchise owners are not publicly available.

The initial investment will range from $482,456 to $714,362 for each Verlo Mattress Factory with a retail store. Each Verlo Mattress retail store has an estimated initial investment of $269,684 to $404,157.

The initial franchise fee is $50K.

• Dirk Stallmann — President

• Robert Hardt — Company Owner

• Bobby Cleveland — Vice President of Franchise Development

• Ira Klusendorf, CFE — Vice President of Marketing

• Robert Schuster, CSCM — Vice President of Purchasing

• Emily Espinoza, CFE — Franchise Administrator

• Patrick Murray, CFE — Vice President, Sales Operations

• Peter Soleta — Vice President of Information Technology

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