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).
- Rated MODERATE with a risk score of 65/100. SBA loan default rate of 0.0% across 5 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
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 Neehee's unit return on the cash you put in?
Unlevered ROIC · per unit
17%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Neehee's units return on equity?
Equity IRR · 5-yr
42.1%
5.79× MOIC
Year-1 DSCR
2.05×
EBITDA ÷ debt service
Equity required
$3.1M
on $11.6M purchase
Total debt
$8.5M
SBA $5.0M + senior + seller note
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
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)
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
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.
Score breakdown · what drove the 65 / 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
Item 11
Training & Operations
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
3 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Neehee's · FDD (2025) PDF