FranchiseVerdict
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FV-01754·MODERATEExcellent95

Neat Method

Automotive - Repair & ServiceFranchising since 2017Website
Investment
$38K – $45K
6th pct Repair & Serv…
Avg revenue
$163K
2nd pct Repair & Serv…
Royalty
Units
94
57th pct Repair & Serv…
SBA default

Bottom line

  • Total investment $38K – $45K including a $30K franchise fee.
  • Average unit revenue of $163K/year (median $134K).
  • Rated MODERATE with a risk score of 56/100.

Item 1 · who you're contracting with

The Franchisor

Legal entity
NM Franchise Operations, LLC
Parent company
Neat Method Strategies Holdings, LLC
Incorporated in
Delaware
HQ
8 White Birch, Littleton, Colorado 80127
Auditor
Lenahan, Smith and Bargiachi, P.C.
Audited financials
Franchisor revenue
$8.2M
vs $8.3M prior year

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one Neat Method unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $163,424
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: automotive
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $38K–$45K
Working capital
$
FDD reports $2K–$3K

Unlevered ROIC · per unit

64%

Above typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$28K
EBITDA margin
17.0%
Total invested
$43K
Payback
19 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Levered LBO scenario · Yale Crease Capital framing

What would 25 Neat Method units return on equity?

Edit assumptions

Equity IRR · 5-yr

49.9%

7.57× MOIC

Year-1 DSCR

1.88×

EBITDA ÷ debt service

Equity required

$327K

on $1.6M purchase

Total debt

$1.3M

SBA $0.8M + senior + seller note

Overview

About

Neat Method franchisees operate professional home organization and decluttering services, working directly with residential clients to design and implement storage solutions, organize spaces, and provide consulting. Franchisees manage client acquisition, scheduling, on-site service delivery, and team management, likely combining hands-on organizing work with business operations.

CEO
Ashley Murphy
Founded
2017
FDD year
2025
States available
34

Item 7 · what it costs

The Vitals

Total investment
$38K – $45K
All-in to open one unit
Liquid capital
$2K – $3K
Cash you must have on hand
Franchise fee
$30K
Royalty
Varies based on Tier and Service Revenue targets (8% to 20%)
Ad fund
2.0%
typical 3–5%
Total fee load
10.0%
vs 9–13% typical

Item 19

Financial Performance

Avg gross sales
$163K
Per unit, per year
Median gross sales
$134K
Item 19 type
Gross Service Revenue
Sample size
81 units
vs category median 59
Range (low → high)
$15K$600K
Cohort dispersion
Transparency
4 / 5
vs category median 4 / 5 · typical
Revenue rank2th
vs Automotive - Repair & Service peers
Investment cost rank6th
Lower investment ranks lower (better)
Royalty rate rank79th
Lower royalty = lower percentile (better)
Unit count rank57th
vs Automotive - Repair & Service peers
Risk score rank35th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
94
Opened
7
Last reporting year
Closed
6
Turnover rate
6.4%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Multi-unit owners
1.0%
Net growth (yr3)
+0.0%
Net unit change last year
3-yr CAGR
+4.4%
Compounded over last 3 years
2023
94±0
Franchised units
2024
94
Franchised units
2025
90
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 12 states with active franchisees

The Territory Map

Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 12 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

No SBA loan data available for this brand.

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

56
Risk · 0-100
MODERATE56 / 100

Neat Method presents moderate-to-cautious risk due to missing profitability data, regulatory compliance history, opaque fee structures, and uncertain system growth metrics.

Score breakdown · what drove the 56 / 100 rating

  1. 01MEDNo Item 19 (Average Net Income) disclosed — impossible to validate the $163,424 average revenue claim or actual profitability
  2. 02MINORRegulatory violation in 2018 (Washington State Consent Order) indicates compliance weaknesses in franchise sales and disclosure practices
  3. 03MINORWide royalty range (8-20%) based on opaque tier/revenue targets creates uncertainty about true cost structure and franchisee profitability at different performance levels
  4. 04MINOROnly 94 units with unknown growth trajectory — system size unclear; no disclosure of unit closures or attrition rates
  5. 05MINORHigh royalty ceiling (20%) combined with unknown net income makes ROI on $37,500-$44,500 investment difficult to assess
  6. 06MINOR5-year term is relatively short; renewal risk and unit economics post-year-5 unknown

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Designated geographic area
Protected territory
Yes
Initial term
5 years
Renewal term
5 years
Online sales rights
Granted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
1
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
No
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Colorado

Item 11

Training & Operations

Classroom training
28 hrs
On-the-job training
16 hrs
POS system
Designated CRM software
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

13 numbers

Locked
(773) 343-••••
The franchisor is
IL
(313) 910-••••
MI
(212) 416-••••
NY

One-time purchase · CSV download · Validation questions included

FDD download

Neat Method · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above