NHance Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$70,995 - $196,995
Franchise Fee
$22,500
Total US Locations
255
Business Summary
N-Hance Business offers services for cleaning, coating, protecting, and renewing wood surfaces like floors, cabinets, and trim for both homes and businesses. N-Hance Business uses special products and equipment, including a unique process that may involve ultraviolet light to cure solutions. N-Hance Business owners follow specific operating procedures and can also offer additional services such as granite renewal, floor sanding, and cabinet door replacement after getting extra training.
Corporate History
N-Hance, Inc. was incorporated in Delaware on December 19, 2012. It began offering N-Hance Business franchises in January 2013. The N-Hance franchise program was originally designed and developed by Chem-Dry, Inc. (CDI), which was incorporated in 1994. In a 2012 reorganization, CDI contributed the N-Hance program assets and liabilities to N-Hance, Inc. In July 2019, BELFOR (USA) Group, Inc. acquired control of N-Hance, Inc. and its affiliate BFG Holdco, Inc., making them wholly owned subsidiaries of BELFOR, which is itself a subsidiary of BELFOR Holdings, Inc. BELFOR Holdings, Inc. was purchased by ASP BF Intermediate Sub, LLC in April 2019. N-Hance, Inc. does not and has never operated any N-Hance Businesses.
Financial Overview
Investment Range
$70,995 - $196,995
Franchise Fee (Low)
$22,500
Franchise Fee (High)
$90,495
Royalty %
2%
Equipment Costs (Low)
$41,795
Equipment Costs (High)
$108,495
Working Capital
$7,250
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
BFG Holdco, Inc. (N-Hance's parent company) has reported significant financial losses, including a consolidated net loss of $11,108,000 in 2024 and $44,277,000 in 2023. N-Hance's parent has also recognized substantial goodwill impairment losses, totaling $10,519,000 in 2024 and $45,537,000 in 2023. These impairments are due to challenging economic conditions, rising interest rates, and a strategic decision to reduce the overall size of its franchise network to address franchisee noncompliance issues, which has negatively impacted expected future cash flows. Despite these losses, the company maintains positive working capital, with current assets exceeding current liabilities. While the auditors' report mentions management's evaluation of going concern risk, the audit opinion itself for 2024 and prior years was unqualified, meaning there was no explicit going concern qualification in the auditor's opinion.
Financing Details
N-Hance offers direct financing for a portion of the Initial Fee and Initial Package Fee to franchisees who qualify with approved credit. Franchisees must make a minimum 50% down payment on the Initial Franchise Fee. N-Hance can finance up to 50% of the Initial Fee over a term of up to 3 years (36 months) at an interest rate of 9%. Payments typically begin the month after an existing franchisee signs the agreement, or for new franchisees, the earlier of the fourth month after completing initial training or the eighth month after the Promissory Note date. N-Hance requires an automatic debit program for all loan payments. A 10% discount on the Initial License Fee is available if paid in full within six months. There is no penalty for early repayment. If a franchisee defaults on the Promissory Note or the Franchise Agreement, N-Hance can demand immediate payment of the entire outstanding balance and may terminate the franchise. N-Hance does not offer financing for the optional Floor Sander Kit or Color Tinting Kit.
Performance Metrics
Total US Locations
255
Franchised Units
255
Corporate Units
0
Avg Square Footage
1,000
Franchising Since
2013
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
3
Litigation Summary
N-Hance has disclosed three litigation cases. One case, filed in January 2025 against a franchisee, is currently ongoing and involves a breach of contract claim for unpaid royalties and post-termination violations, with N-Hance seeking over $190,000 in damages. Another case, filed in October 2017 by a franchisee, alleged N-Hance made misrepresentations regarding its relationship with The Home Depot, startup costs, projected revenues, and product/support. This case was settled in April 2019, with N-Hance repurchasing equipment and making a $78,000 payment to the franchisee. The third case, filed in June 2023, involved N-Hance suing a competing cabinet refinishing service for trade secret misappropriation and breach of contract. This case was settled in July 2024, with the defendants agreeing to stop the infringing activity and pay N-Hance $2,000.
Bankruptcy History
N-Hance has no bankruptcy history to report.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their N-Hance franchise agreement, franchisees must meet several conditions. N-Hance franchisees must have fully complied with all terms of their current Franchise Agreement and completed all required training. They also need to agree to upgrade or replace any necessary operating assets, such as business vehicles and equipment, as N-Hance specifies to meet current brand standards for new franchises. Furthermore, they must sign N-Hance's then-current franchise agreement, which could include different fees, terms, and conditions, and pay the specified renewal franchise fee.
Training & Support Program
Franchisor Assistance
N-Hance provides franchisees with support both before and after they open. Before opening, N-Hance designates the franchised area, supplies the initial inventory and equipment, provides an operating manual, and conducts initial training. After opening, N-Hance offers ongoing guidance on operating issues, standards, and procedures through the manual, bulletins, phone consultations, and designated in-person consultations. N-Hance continuously revises the operating manual, organizes additional training and conventions (requiring franchisees to attend at least two annual conventions and one in-person training course each year, along with any mandated online training), inspects business operations for compliance, and makes advertising materials available for purchase. Additionally, N-Hance sells wood care products and supplies, and handles billing and collections for national accounts.
Initial Training Hours
78
Training Location
Online and at NHI's offices in Ann Arbor, MI
Ongoing Support
N-Hance provides ongoing support to its franchisees through various channels. This includes regularly advising on operating issues and offering guidance on brand standards and procedures via the operating manual, newsletters, phone consultations, and designated in-person consultations. N-Hance continuously revises the operating manual and organizes additional training and conventions, requiring franchisees to attend at least two annual conventions and one in-person training course each year, along with any mandated online training. The franchisor also inspects and observes business operations to ensure compliance, makes advertising materials available for purchase, and handles billing and collections for national accounts.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Supervisory
Territory Type
Non-Exclusive
Territory Size Requirements
N-Hance franchise territories are defined by population and geographical boundaries. A typical territory for either a Traditional or Small Market franchise will serve a population of approximately 250,000 to 350,000 people.
Staffing Notes
N-Hance franchisees are responsible for hiring, training, and managing their own employees. N-Hance Business operators are permitted to have as many crews, teams, sales forces, and business vehicles as they choose, with a separate crew required for each additional franchise. Franchisees are not allowed to use independent contractors to provide services to customers. The N-Hance system outlines various job roles including General Manager, Office Administrator, Bookkeeper, Lead Technician, and Technicians, but does not specify a fixed number of employees.