Nhou
Formerly known as NH Oil Undercoating
Bottom line
- Total investment $40K – $95K including a $63K franchise fee, 3.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 65/100. SBA loan default rate of 0.0% across 1 loans (below the industry average).
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
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 NHOU unit return on the cash you put in?
Unlevered ROIC · per unit
210%
Above typical band (30–60%)
Overview
About
NHOU franchisees operate [BUSINESS MODEL NOT DISCLOSED IN DATA]. Day-to-day operations involve managing a protected territory with standard franchise support, though specific operational metrics, staffing requirements, and revenue drivers remain undisclosed due to lack of Item 19 financial performance.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 14 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).
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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
NHOU presents a high-risk micro-franchise with undisclosed financials, unverifiable growth metrics, franchisor stability concerns, and a disproportionately high franchise fee that makes ROI assessment impossible.
Score breakdown · what drove the 65 / 100 rating
- 01MEDNo average revenue or net income disclosed (Item 19) — impossible to assess ROI on $40K-$95K investment
- 02MINORExtremely small unit base (only 5 locations) with unverified 100% YoY growth claim — lacks statistical credibility and market validation
- 03MINORHigh franchise fee ($63,000) relative to total investment range ($40,350-$95,000) represents 66-156% of minimum investment
- 04HIGH'Going Concern' status is FALSE — indicates potential financial instability of franchisor or parent company
- 05MINORRoyalty structure escalates from 3% to 4% Year 2+ — reduces profitability despite claims of system growth
- 06HIGHNo litigation disclosed but tiny system size limits historical data; insufficient track record to validate claims
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
14 numbers
One-time purchase · CSV download · Validation questions included
FDD download
NHOU · FDD (2024) PDF