FranchiseVerdict
NHance logo
FV-01777·STRONGExcellent95

NHance

Formerly known as National Home Inspection

OtherFranchising since 2013Website
Investment
$73K – $194K
22nd pct Other
Avg revenue
$625K
22nd pct Other
Royalty
Units
209
87th pct Other
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $73K – $194K including a $39K franchise fee.
  • Average unit revenue of $625K/year (median $401K).
  • Rated STRONG with a risk score of 47/100. SBA loan default rate of 0.0% across 5 loans (below the industry average).
  • System contracting at -27.7% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).

Item 1 · who you're contracting with

The Franchisor

Legal entity
NHance, Inc.
Parent company
BELFOR (USA) Group, Inc.
Incorporated in
Delaware
HQ
5405 Data Ct., Ann Arbor, MI 48108
Auditor
BDO USA, P.C.
Audited financials
Franchisor revenue
$29.5M
vs $30.1M 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 NHance unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $625,402
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $73K–$194K
Working capital
$
FDD reports $3K–$12K

Unlevered ROIC · per unit

67%

Above typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$94K
EBITDA margin
15.0%
Total invested
$140K
Payback
18 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 NHance 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

$1.0M

on $5.0M purchase

Total debt

$4.0M

SBA $2.5M + senior + seller note

Overview

About

NHance franchisees operate wood refinishing and cabinet restoration services, primarily serving residential customers through on-site finishing, staining, and protective coating applications. Day-to-day operations involve customer acquisition (sales/marketing), job scheduling, on-site wood finishing work, quality control, and equipment/inventory management for finishing materials and application tools.

CEO
Christopher Seman
Founded
2012
FDD year
2026
States available
38

Item 7 · what it costs

The Vitals

Total investment
$73K – $194K
All-in to open one unit
Liquid capital
$3K – $12K
Cash you must have on hand
Franchise fee
$39K
Royalty
The greater of (1) 6% of your Gross Revenue or (2) the Mi…
Ad fund
2.0%
typical 3–5%
Total fee load
8.0%
vs 9–13% typical

Item 19

Financial Performance

Avg gross sales
$625K
Per unit, per year
Median gross sales
$401K
Item 19 type
Active Franchise Owners
Sample size
67 units
vs category median 20 · large
Range (low → high)
$108K$2.9M
Cohort dispersion
Transparency
4 / 5
vs category median 3 / 5 · above
Revenue rank22th
vs Other peers
Investment cost rank22th
Lower investment ranks lower (better)
Royalty rate rank70th
Lower royalty = lower percentile (better)
Unit count rank87th
vs Other peers
Risk score rank10th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
209
Opened
3
Last reporting year
Closed
49
Turnover rate
23.4%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Net growth (yr3)
-18.0%
Net unit change last year
3-yr CAGR
-27.7%
Compounded over last 3 years
2024
209-46
Franchised units
2025
255
Franchised units
2026
289
Franchised units

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

Item 20 · 38 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 · 38 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.

Total loans
5
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

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

Risk & Legal

47
Risk · 0-100
STRONG47 / 100

NHance presents a CAUTION-level risk profile: a declining franchise system with active litigation, undisclosed profitability metrics, and questionable franchisee support dynamics that warrant deep due diligence before commitment.

Score breakdown · what drove the 47 / 100 rating

  1. 01MEDSystem contraction: 18% unit decline YoY (209 to ~171 units) indicates shrinking franchisee base and potential market saturation or operational challenges
  2. 02HIGHMultiple litigations: Three separate legal actions (unpaid royalties, misrepresentation claims, IP violations) suggest compliance issues, franchisor-franchisee friction, and possible quality control gaps
  3. 03MEDNo disclosed net income: Absence of Item 19 earnings claim prevents validation of the $625k average revenue claim and obscures true profitability for franchisees
  4. 04MINORHigh royalty floor: 6% minimum royalty on declining revenue base increases franchisee burden during economic downturns or slow periods
  5. 05HIGHLitigation pattern: Mix of franchisor enforcement (Amore, Finishline) and franchisee complaints (Torok misrepresentation) suggests systemic relationship issues

Severity inferred from the FDD text · not a regulatory classification

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

Contract & Territory Detail

Territory
Geographic and population based
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
3
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
1.5 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
Michigan

Item 11

Training & Operations

Classroom training
21 hrs
On-the-job training
51 hrs
POS system
QuickBooks Online
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

94 numbers

Locked
(253) 474-••••
WA
(913) 514-••••
KS
(515) 203-••••
IA

One-time purchase · CSV download · Validation questions included

FDD download

NHance · FDD (2026) PDF

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