Neehee'sFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Neehee's franchise requires a total initial investment of $925K – $1.5M, including a $60K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.4M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $925K – $1.5M
- 42nd pct Service Resta…
- Avg gross sales
- $1.4M
- 15th pct Service Resta…
- Royalty
- 5.0%
- 7th pct Service Resta…
- Units
- 4
- 10th pct Service Resta…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $925K – $1.5M including a $60K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.4M/year (median $1.3M).
- Verdict A (Top Quintile) with a risk score of 49/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Nihi Franchising, Inc.
- Ultimate parent
- None
- CEO title
- Chief Executive Officer
- Rikesh Patel
- CEO experience
- 2006 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- MI
- HQ
- 6321 Commerce Drive, Westland, Michigan 48185
- Auditor
- SPA ASSOCIATES, LLC
- Audited financials
- Franchisor revenue
- $484K
- vs $331K prior year
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- Nihi Distributing
- Nihi Foods
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Neehee's franchisees operate retail/service locations generating approximately $1.44M in average revenue. Day-to-day operations involve inventory management, customer service delivery, staff oversight, and local marketing execution under the Neehee's brand. Franchisees remit 5% of net sales as royalties and absorb all location-level operating expenses.
- CEO
- Rikesh Patel
- Headquarters
- MI
- Founded
- 2012
- FDD year
- 2025
- States available
- 3
FDD Item 7 · 2025 filing · 13 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $60K | $60K | |
| Training Expensesnot refundable | $3K | $25K | |
| Rent | $0 | $30K | |
| Building Improvements | $500K | $700K | |
| Furniture, Fixtures, Equipment, Audio Visual and Small Wares | $225K | $400K | |
| Point of Sale System (Electronic Cash Register) | $3K | $10K | |
| Insurance | $2K | $3K | |
| Opening Inventory | $10K | $10K | |
| Signage | $10K | $20K | |
| Professional Fees | $50K | $100K | |
| Uniforms | $3K | $5K | |
| Grand Opening Advertising | $10K | $15K | |
| Additional Funds (initial 3-month period) | $50K | $100K | |
| Total initial investment | $925K | $1.5M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$144K
10.0% margin
Unlevered ROIC
11%
EBITDA / total invested capital
Payback
8.8 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $925K – $1.5M
- Near category avg vs category
- Liquid capital req'd
- $50K – $100K
- Better than avg vs category
- Franchise fee
- $60K – $60K
- Near category avg vs category
- Royalty
- 5.0%
- Net Sales · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Renewal fee | $10K |
| Inventory (initial) | $10K – $10K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $1.4M
- Per unit, per year
- Median gross sales
- $1.3M
- Item 19 type
- Historical
- Sample size
- 3 units
- vs category median 13 · small
- Range (low → high)
- $846K→$2.2M
- Cohort dispersion (min → max)
- Transparency tier
- revenue_only
- Categorical assessment of disclosure depth
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 7 / 5
- vs category median 4 / 5 · above
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How Neehee's Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 4
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 16.7%
- Net growth (yr3)
- +0.0%
- Net unit change last year
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 1
- Franchisor's next-year forecast
- Continuity rate
- 100.0%
- Units that stayed open
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 3 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
3
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 5 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 5
- Loan volume
- $6.9M
- Median loan
- $1.8M
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 2
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Neehee's's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 2 lenders with concentration factor
- Per-state charge-off rates across 3 states
- Startup risk premium and job creation velocity
- 2-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Neehee's is an extremely early-stage franchise system with only 4 units, unproven profitability metrics, no territorial protection, and high capital requirements relative to system size—presenting substantial execution and scalability risk.
Litigation (Item 3)
No litigation required to be disclosed
Largest disclosed settlement: $240,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · SPA ASSOCIATES, LLC⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 49 / 100 rating
- 01MINOROnly 4 units systemwide indicates an extremely small, unproven franchise system with minimal scale
- 02MEDNet Income not disclosed in FDD Item 19 prevents meaningful ROI analysis and profit verification
- 03MINORNo protected territory creates direct competition risk and cannibalization potential between franchisees
- 04MINORHigh investment-to-unit ratio ($924.5K-$1.478M for only 4 locations) suggests capital-intensive model with unclear unit economics
- 05MINORUnknown growth trajectory over franchise term makes expansion projections unverifiable
- 06MED5% royalty on undisclosed net income means actual take-home profit remains opaque
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 5 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 15 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | county of our principal place of business |
| Jury trial waiver | Yes |
| Governing law | Michigan |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 56 hrs
- On-the-job training
- 480 hrs
- Training location
- Canton, Michigan
- Ongoing training
- Required
- Field support
- 480 hrs/yr
- On-site visits per year
- Site selection
- franchisee
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
3 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Neehee's · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Neehee's franchise?
The total investment to open a Neehee's franchise ranges from $925K – $1.5M, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Neehee's franchise owners earn?
According to Item 19 of the Neehee's FDD, the average gross sales per unit is $1.4M. The median is $1.3M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Neehee's's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Neehee's (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Neehee's franchise locations are there?
As of their most recent FDD filing, Neehee's has 4 total units in the United States, including 4 franchised units and 0 company-owned units.
Is Neehee's a good franchise to buy?
FranchiseVerdict rates Neehee's as a A-grade franchise with a risk score of 49 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.