Risk Score
Pending analysis
Investment Range
$37,500 - $44,500
Franchise Fee
$30,000
Total US Locations
94
Business Summary
Neat Method businesses provide luxury home organizing services, bringing comfort, efficiency, and style to clients' homes. Neat Method offers fully customized, turn-key organizing solutions for any space, including space planning, purchasing, and implementing organizing solutions. The brand also offers a line of home products designed to balance aesthetics and function.
Corporate History
Neat Method was initially co-founded as Neat Method, Inc. by Ashley Murphy in San Francisco in January 2011. Marissa Hagmeyer became a co-owner in May 2012. NM Franchise Operations, LLC, the current franchisor, was organized in Delaware on August 8, 2017, and began offering franchises in October 2017. The company sold its initial company-owned locations in Hinsdale, Illinois, and Ft. Lauderdale, Florida, to franchisees in late 2017. As of December 2022, Neat Method Strategies Holdings, LLC (NMSH), which wholly owns NM Franchise Operations, LLC, repurchased its controlling interest and is now wholly owned by AMM Holdings, LLC, the successor to the original Neat Method, Inc. entity.
Financial Overview
Investment Range
$37,500 - $44,500
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$30,000
Royalty %
20%
Equipment Costs (High)
$2,500
Working Capital
$2,250
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Neat Method's financial statements show positive working capital and net income for the years 2022-2024. However, the company's cash balances have decreased significantly over this period, primarily due to substantial member distributions. Neat Method depends heavily on a single supplier, Whitmor, Inc., for a large portion of its inventory purchases. Although the auditors evaluated the company's ability to continue as a going concern, they did not issue any qualifications regarding this.
Financing Details
Neat Method does not offer any direct or indirect financing options to its franchisees. Franchisees are solely responsible for arranging their own financing, and Neat Method does not guarantee any notes, leases, or other obligations.
Performance Metrics
Total US Locations
94
Franchised Units
94
Corporate Units
0
Franchising Since
2017
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
1
Litigation Summary
Neat Method has a limited legal history. In April 2018, its predecessor, Neat Method, Inc., entered into a Consent Order with the State of Washington's Securities Division. This was due to allegations that Neat Method, Inc. sold a business in Washington in 2017 without having a current permit or providing a disclosure document. Without admitting or denying the findings, Neat Method, Inc. agreed to cease and desist from such violations, pay $500 for investigation costs, and waive certain review rights. Beyond this, Neat Method has no other reportable litigation.
Bankruptcy History
Neat Method has no bankruptcy history to report for the franchisor, its predecessors, or its management personnel.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Neat Method franchisees must provide at least 120 days' written notice before the agreement expires. They must be in good standing, meaning they are not in breach of any agreement with Neat Method or its affiliates, and have satisfied all financial obligations. Franchisees are also required to pay a renewal fee, execute Neat Method's then-current franchise agreement (which may include materially different terms and conditions, such as fee increases), and sign a general release (subject to state law). Additionally, they must comply with all current qualifications and training requirements. The Protected Territory granted to the franchisee will remain the same upon renewal.
Training & Support Program
Franchisor Assistance
Before opening, Neat Method grants franchisees the right to operate a business and use its trademarks within a protected territory. It provides a confidential Operations Manual, initial training, and a list of approved products and suppliers. After opening, Neat Method provides ongoing assistance and supervision, including specifications for supplies, marketing and sales support, and general operating procedures. It reviews franchisee-developed advertising materials and may offer additional training and support at its discretion. Neat Method also establishes and revises policies, procedures, standards, and offers access to an electronic Operations Manual.
Initial Training Hours
44
Training Location
Virtual and Nashville, Tennessee
Ongoing Support
After opening their business, Neat Method franchisees receive ongoing assistance and supervision, including specifications for supplies, and support for marketing and sales. Neat Method also provides administrative and general operating procedures and reviews any proposed advertising materials developed by franchisees. The franchisor may offer additional training and support as it deems necessary, and will establish, amend, or revise operational policies and procedures. Franchisees have continuous access to an electronic Operations Manual and an internal proprietary intranet. They are also required to pay a monthly Continuing Education and Events Fee to cover the costs of franchisee conventions, conferences, and virtual and regional meetings, and must attend any designated franchisee summits or corporate events.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Home-Based
Owner Participation
Hands-On
Territory Type
Protected
Staff Count
1
Territory Size Requirements
Neat Method defines its Protected Territories based on factors such as population density, neighborhood characteristics, and the presence of competing businesses. Territories may be established using one or more five-digit zip codes, county or city boundaries, or specific geographic features like rivers or streets. Neat Method uses demographic statistics from sources like the U.S. Census Bureau for these determinations, but it does not specify a minimum required size for a Protected Territory. Franchisees in Chicago and New York City, however, do not receive a Protected Territory.
Staffing Notes
Neat Method requires that if the franchisee is an entity (like a corporation or LLC), it must employ at least one manager approved by Neat Method, who has completed the initial training program. This manager, or the individual franchisee if not an entity, must personally supervise the day-to-day operations on a full-time basis, without engaging in other activities that conflict with managing the franchise. Franchisees are responsible for appointing and managing their own personnel and contractors, who must complete Neat Method's Intake Form and training to verify their qualifications and skills.