Neehee’s Restaurant Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$924,500 - $1,480,000
Franchise Fee
$60,000
Total US Locations
4
Business Summary
Neehee's Restaurants are fast-casual dining establishments that offer on-premises dining and carry-out services. Neehee's specializes in authentic Indian vegetarian cuisine, featuring a wide variety of menu items like chaats, dosas, sandwiches, Indo-Chinese dishes, and pakodas, all prepared with fresh, locally sourced ingredients. The restaurants also serve ice creams, ice cream-related beverages, fresh fruit juices, and sodas.
Corporate History
Nihi Franchising, Inc., which operates as Neehee's, was organized as a Michigan corporation on April 16, 2012. The company began offering franchises in January 2013. Prior to the franchisor's formation, an affiliate, Nihi Foods, Inc., has owned and operated a Neehee's Restaurant since 2006, helping to develop the Neehee's System. Another affiliate, Pizzawala's Franchising, Inc., has offered franchises for Pizzawala's restaurants since 2020, specializing in authentic Indian pizza.
Financial Overview
Investment Range
$924,500 - $1,480,000
Franchise Fee (Low)
$60,000
Franchise Fee (High)
$60,000
Royalty %
5%
Marketing %
3%
Equipment Costs (Low)
$725,000
Equipment Costs (High)
$1,100,000
Working Capital
$75,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial statements for Nihi Franchising, Inc. have received an unqualified opinion from its independent auditors, indicating that they present fairly, in all material respects, the company's financial position and cash flows in accordance with accounting principles. The auditors did not identify any conditions or events that would raise substantial doubt about Neehee's ability to continue as a going concern. The company reported a positive net income in 2023, following higher net incomes in 2022 and 2021. Neehee's maintains positive working capital, with current assets significantly exceeding current liabilities. No specific financial concerns or exceptional strengths beyond standard reporting are noted in the auditor's reports or financial statements.
Financing Details
Neehee's does not offer any direct or indirect financing options to its franchisees. Franchisees are solely responsible for securing their own financing, as Neehee's will not guarantee any notes, leases, or other obligations.
Performance Metrics
Total US Locations
4
Franchised Units
4
Corporate Units
0
Avg Square Footage
4,500
Franchising Since
2013
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Neehee's has no litigation history that is required to be disclosed in Item 3 of its Franchise Disclosure Document. This indicates that Neehee's has not been involved in any material litigation or legal proceedings that need to be reported to potential franchisees.
Bankruptcy History
Neehee's has no bankruptcy history that is required to be disclosed in Item 4 of its Franchise Disclosure Document. This means neither Neehee's nor its key personnel have filed for bankruptcy.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their Neehee's franchise, franchisees must notify the franchisor in writing between one to three years before their agreement expires. They must be in good standing, meaning they have fully complied with the Operations Manual and Franchise Agreement, and satisfied all monetary obligations to Neehee's and its affiliates. Franchisees must also meet Neehee's current financial requirements for new franchisees and provide certified financial statements. The business location needs to be updated to current brand standards through remodeling and renovation, and a non-refundable renewal fee of $10,000 is required. Additionally, franchisees must complete current training and certification requirements and sign the then-current franchise agreement, which may have different terms, including potentially higher royalty and marketing fees, and a modified territory. Finally, a general release of claims against Neehee's must be signed.
Training & Support Program
Franchisor Assistance
Before opening, Neehee's provides franchisees with sample construction plans and specifications, assists with site and lease approval, loans them the Operations Manuals, reviews architectural drawings, and provides an Approved Suppliers List. Neehee's also conducts initial management training, which includes 56 hours of classroom training at its principal office and approximately 12 weeks of on-the-job training at a designated Neehee's Restaurant in Canton, Michigan, for the franchisee and at least four managers. Additionally, Neehee's assists with staff training for approximately 14 days at the franchisee's restaurant, overlapping with the opening. After opening, Neehee's continues to support franchisees by managing the Marketing Fund and assisting with local advertising placement. The franchisor conducts periodic site visits for inspections, consultation, and guidance, and may implement a System Performance Review Program. Neehee's organizes franchisee meetings, makes special promotional items available, and provides updated Approved Suppliers Lists. Refresher training programs and seminars may also be offered for an additional fee.
Initial Training Hours
536
Training Location
Michigan
Ongoing Support
After opening, Neehee's provides franchisees with ongoing support, including staff training assistance for approximately 14 days at the franchisee's restaurant. Neehee's maintains the Marketing Fund, directs marketing and advertising programs, and may assist franchisees with local advertising placement. The franchisor conducts periodic site visits for consultation, inspections, and guidance, providing written reports with suggested improvements. Neehee's may also implement a System Performance Review Program and organize mandatory franchisee meetings, which franchisees must attend at their own expense. Additionally, Neehee's provides updated Approved Suppliers Lists, reviews and tests unapproved items or suppliers, and may offer refresher training programs and seminars for an additional fee.
Franchise Requirements
Ideal Candidate Profile
Neehee's seeks individuals or entities who meet specific qualifications and demonstrate potential to be productive members of its system. While the franchisor does not detail personality traits or specific prior experience, it requires a designated individual, the Franchisee Designate, to supervise the restaurant's day-to-day operations on-premises. This individual must beneficially own at least 10% of the restaurant, successfully complete Neehee's training program, and have no business relationship with competitors. Franchisees must also meet Neehee's current financial requirements, including net worth, debt-to-equity ratios, and capitalization, and be in good standing with the law and their organization.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
non-exclusive
Territory Size Requirements
Neehee's defines its Designated Areas for franchisees, typically ranging from a minimum of the restaurant property itself to a maximum of three miles. In certain situations involving physical boundaries such as rivers or multi-laned highways, the Designated Area will generally not exceed three miles. Neehee's determines the size of the Designated Area by considering factors like population and development density, demographics, traffic patterns, existing locations and their viability, competition, proximity to shopping centers, and overall market feasibility. However, Neehee's explicitly states that franchisees do not receive an exclusive territory, as the franchisor retains the right to operate or franchise other businesses and channels of distribution, including those offering similar products, both inside and outside the Designated Area, and can exclude locations like enclosed malls, hospitals, and airports from the territory.
Staffing Notes
Neehee's requires a Franchisee Designate, who must own at least 10% of the restaurant and personally supervise operations on-premises after successfully completing the training program. Franchisees must also employ at least four other certified managers who complete Neehee's management training program. The franchisee is responsible for the wages, travel, and living expenses for the Franchisee Designate and managers during training. For new openings, Neehee's assists with staff training for approximately 14 days, with the number of franchisor-provided trainers decreasing as the franchisee operates more restaurants. If a franchisee owns three or more Neehee's Restaurants, one must be approved as a Certified Training Restaurant. Franchisees are responsible for ensuring all staff are properly trained according to the Operations Manuals.