About Arctic Franchise
Arctic Elevation is a franchise system specializing in wellness center services including Cryotherapy, Red Light Therapy, Infrared Sauna, Compression Therapy, Percussion Therapy, IV Drip Therapy, and NAD+.
The Area Representative franchise model involves soliciting and recruiting prospective unit franchisees, providing operational support, training, and field assistance to unit franchisees within a designated geographic territory.
Area representatives earn commissions on initial franchise fees, transfer fees, and royalty fees collected from unit franchisees in their territory, and are also required to own and operate at least one unit franchise themselves.
Arctic Franchise Cost & Fees
Minimum Investment
$177K
Average Investment
$470K
Maximum Investment
$763K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $100,000 to $650,000 | One-time payment upon signing |
| Royalty Fee | 50% of standard Unit Franchise Royalty Fee of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | $3,000 per quarter minimum | National brand fund |
| Total Investment Range | $177,250 – $762,500 | Includes build-out, inventory, working capital |
The investment range of $177K–$763K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (50% of standard Unit Franchise Royalty Fee) and marketing fee ($3,000 per quarter minimum) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Area Representative Fee | $100,000 | $650,000 |
| Computer and Security Equipment and Software | $1,000 | $5,000 |
| Training Expenses (including travel and living) | $0 | $5,000 |
| Insurance | $1,000 | $2,500 |
| Initial Marketing and Advertising | $6,000 | $20,000 |
| Supplies and Materials | $2,000 | $5,000 |
| State and Local Franchise, Tax, and Business Filings | $250 | $5,000 |
| Office Expenses | $0 | $15,000 |
| Legal & Accounting Fees | $1,000 | $5,000 |
| Additional Funds - 12 months | $30,000 | $50,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $15,000 plus 10% commission on gross sale price if franchisor finds buyer |
| Renewal Fee | No fee, but must reimburse out-of-pocket costs and pay for required updated training |
| Technology Fee | Up to $499 per month (if proprietary software established in future) |
| Audit Fee | Actual cost of audit plus amount of any underpayment with interest |
| Late Payment Fee | $75 to $250 |
| Late Payment Interest | 1.5% per month or maximum allowed by law |
| Extraordinary Onsite Operations Assistance | $750 per person per day plus travel costs |
| Supplies and Advertising | Cost plus up to 35% |
| Area Representative Advertising Cooperative Fund | Up to 2% of Gross Revenues (requires 65% franchisee vote) |
| Additional Training | $750 per person per day plus costs and expenses |
| Conventions | Up to $10,000 |
| Additional Assistance | Up to $750 per day |
| Step-In Right Costs | Out-of-pocket expenses plus 25% overhead |
| Product Testing Costs | Out-of-pocket expenses |
| Insurance Reimbursement Fee | Actual amount plus interest plus costs |
| Indemnification | All damages, liabilities, fines, losses, costs and expenses including legal fees |
| Attorney's Fees and Costs | Amount of attorneys' fees for prevailing party |
| Profits on Supplies or Equipment | Cost plus up to 35% |
| Commission on Initial and Transfer Fees | 50% paid to Area Representative |
| Commission on Royalty Fees | 50% paid to Area Representative |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 6 days (46 hours classroom, 26 hours on-the-job) |
| Classroom Training | 46 hours |
| On-the-Job Training | 26 hours |
| Training Location | 1133 Lake Washington Blvd N, Ste. 80, Renton, WA 98056 or other agreed-upon location |
| Additional Training | Up to 40 hours per year of mandatory refresher programs and seminars. Additional training available at $750 per person per day. Conventions may be held periodically. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | Population-based, typically 2 million to 13 million persons |
| Description | Designated geographic area defined in Area Representative Agreement. Territory varies in size based on advertising coverage, population, growth trends, topography, geography, density, and demographics. Franchisor will not grant another Area Representative Agreement in the territory but reserves the right to recruit and sell Unit Franchises directly in the territory. Area Representative still earns commission on franchises sold by franchisor in the territory. Territorial rights contingent on meeting Minimum Development Schedule. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 20 years |
| Renewal Term | 15 years |
| Renewal Fee | No fee, but must reimburse out-of-pocket costs related to renewal and pay for any required updated training |
| Renewal Conditions | Must give written notice 90-180 days prior to expiration; must have fully performed all obligations and not be in default; must demonstrate financial capacity; must have opened and continue to service aggregate number of Unit Franchises required by Development Schedule; must execute general release; must attend and complete retraining program at own expense |
| Transfer Fee | $15,000 (plus 10% commission on gross sale price if franchisor finds buyer) |
| Transfer Conditions | Franchisor approval required; transferee must meet qualifications, assume all rights and obligations, complete training; franchisee must be in full compliance; transferee signs new Area Representative Agreement (may have materially different terms); payment of all existing obligations; franchisee must sign general release; franchisor has right of first refusal |
| Termination for Cause | Material breach not cured within 30 days; felony or criminal conviction; material dishonesty; abandonment; multiple defaults (3+ in 12 months); breach of other agreements; failure to meet Development Schedule in 2 of 3 consecutive 12-month periods; insolvency or bankruptcy; violation of confidentiality or non-compete; denial of audit rights; falsifying data; unauthorized transfer |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term, no geographic limitation. After termination/expiration, 2 years within the Area Representative Territory, within 300 miles of the Territory, within the territory of any other Arctic Elevation area representative, and within 45 miles of any other operation using the Arctic System or Marks. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | Operating principals are not required to be involved in day-to-day operations but must oversee accounting, reporting, bookkeeping, and financial components; attend all required training; attend annual or special meetings; be involved in site selection and construction; be involved in personnel decisions; conduct frequent inspections; and work sufficient hours for maximum capacity and efficiency. A qualified, approved, and trained owner or general manager must participate fully in day-to-day operation of each franchise location. |
| Required Suppliers | Must purchase all products, devices, equipment, inventory and items from franchisor or approved suppliers. Advertising materials must be purchased from franchisor or approved suppliers. |
| Supply Restrictions | All items bearing Arctic Marks must be bought from franchisor or approved supplier. Must purchase products and equipment from franchisor and suppliers approved by franchisor. May request approval for alternative suppliers with advance written notice. |
| Franchisor Revenue from Suppliers | $0 in fiscal year ending July 31, 2025 (0% of total revenues). Estimated 0-3% of affiliate total revenues from franchisee product purchases in future. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Franchisor does not offer any direct or indirect financing and does not guarantee notes, leases, or obligations. |
Arctic Franchise Earnings — Item 19
Arctic does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Arctic does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Arctic Litigation & Risk Flags
Clean Litigation RecordArctic has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Arctic System Growth
Total Units
3
Franchised
3
Company-Owned
0
Arctic currently operates 3 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2023 | 0 | 0 | 0 |
| 2024 | 2 | 0 | 2 |
| 2025 | 1 | 0 | 3 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 20 states: CA, CT, FL, HI, IL, IN, KY, MD, MI, MN, NE, NY, ND, RI, SD, TX, UT, VA, WA, WI
Arctic Franchise — FAQ
The total investment to open a Arctic franchise ranges from $177,250 to $762,500, per their Franchise Disclosure Document. This includes the initial franchise fee of $100,000 to $650,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Arctic charges a royalty fee of 50% of standard Unit Franchise Royalty Fee of gross sales, plus a $3,000 per quarter minimum contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Arctic Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Arctic to ensure you have the most up-to-date version.
Arctic does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Arctic has been franchising since 2024. The FDD shows an investment range of $177,250-$762,500, a 50% of standard Unit Franchise Royalty Fee royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $100,000 to $650,000 and the total investment ranges from $177,250 to $762,500 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Arctic and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Arctic or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com