About Neat Method Franchise
Neat Method is a professional home organizing franchise that helps residential clients declutter, organize, and transform their living spaces.
The brand has been franchising since 2017 under parent company Whitmor, Inc.
and has grown into one of the most recognized names in the premium home organization industry.
Neat Method Franchise Cost & Fees
Minimum Investment
$34K
Average Investment
$36K
Maximum Investment
$38K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 | One-time payment upon signing |
| Royalty Fee | 10% to 20% of Service Revenue, variable based on territory tier and trailing twelve month revenue targets. of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | None currently | National brand fund |
| Total Investment Range | $34,000 – $38,000 | Includes build-out, inventory, working capital |
The investment range of $34K–$38K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (10% to 20% of Service Revenue, variable based on territory tier and trailing twelve month revenue targets.) and marketing fee (None currently) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $30,000 | $30,000 |
| Costs Associated with Hiring and Employing at least One Employee | $1,000 | $2,000 |
| Travel and Accommodations While Training | $1,000 | $2,000 |
| Promotional Materials | $250 | $500 |
| Business Licenses and Permits | $250 | $500 |
| Additional Funds | $1,500 | $3,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Greater of $2,000 or 20% of purchase price (paid by franchisee) plus $15,000 (paid by transferee) |
| Renewal Fee | $5,000 |
| Technology Fee | Up to $150 per month |
| Audit Fee | Delinquency of Royalty Fee, plus any other cost associated with audit. |
| Liquidated Damages | $5,000 |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Nine week training program |
| Classroom Training | 28 |
| On-the-Job Training | 8 |
| Training Location | Virtual and Chicago, Illinois (with some hands-on learning at client's home, location TBD) |
| Additional Training | After opening, additional training may be provided at franchisor's sole discretion regarding frequency and time to franchisee and employees. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | Variable, determined by population density, neighborhood character, competing businesses, zip codes, county/city boundaries, or fixed geographic boundaries. |
| Description | A tier designation (Tier 1-4) is assigned to each Protected Territory based on market expectations for hourly rates, median income, and total population. Tier 1 allows highest rates, Tier 4 lowest. The tier designation may be reassessed if market factors change. Franchisees in Chicago and New York City do not have a Protected Territory. Franchisor reserves rights to market/sell products/services through dissimilar channels (internet/online platforms) and provide services to certain clients (direct requests, unique goodwill clients) within the Protected Territory without compensation to franchisee. Inquiries from prospects within the Protected Territory are forwarded to compliant franchisees. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 5 years |
| Renewal Term | Additional 5 year terms |
| Renewal Fee | $5,000 |
| Renewal Conditions | 120 days' notice of renewal, not in breach of agreement, satisfy all monetary obligations, pay renewal fee, execute then-current Franchise Agreement (which may have different terms/conditions), and comply with current qualifications and training requirements, and sign a general release (subject to state law). |
| Transfer Fee | Greater of $2,000 or 20% of consideration (from transferor) plus $15,000 (from transferee) |
| Transfer Conditions | Transferee must meet qualifications, all monetary obligations paid, transferor not in default, transferor/principals sign general release (subject to state law), transferee criminal/credit check, transferee assumes obligations, transferee executes new Franchise Agreement, satisfactorily completes training, and pays transfer fee. |
| Termination for Cause | Curable defaults (e.g., failure to operate in compliance, misuse of marks, material breach of agreement, failure to maintain insurance, failure to pay monetary obligations within 14 days, failure to pay vendors/suppliers timely). Noncurable defaults (e.g., insolvency, bankruptcy, felony conviction, conduct affecting goodwill, disclosure of confidential information, material misrepresentation in application, 3 willful and material breaches of same term within 12 months followed by a 4th). |
| Non-Compete Period | 2 years |
| Non-Compete Details | No competing business for a period of two years in the Territory or within 50 miles of the Territory granted by the Franchise Agreement or within the Territory of any other of our franchisees. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee must personally supervise the day-to-day operations, or if an entity, must employ an approved manager who has completed initial training. The responsible person must assume full-time responsibilities and not engage in other business activities that conflict with operating the Franchised Business. |
| Required Suppliers | Franchisee must purchase a minimum amount of NEAT Method product every calendar year equal to the lesser of (a) 10% of total Service Revenue or (b) 30% of total expenditures on product purchases of any kind. |
| Supply Restrictions | Franchisor reserves the right to designate and approve suppliers in the future, including itself, its parents, and affiliates. Currently, no other restrictions are imposed on suppliers from whom products or services are purchased, except for the minimum purchase requirement from Neat Method. |
| Franchisor Revenue from Suppliers | $0 in 2021; will begin receiving revenue from the Minimum Annual Purchase Requirement going forward. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not currently offer direct or indirect financing. |
Neat Method Franchise Earnings — Item 19
Revenue Range
$21K – $530K
Sample Size
70 units
Past financial performance does not guarantee future results. Individual results will vary.
Neat Method Litigation & Risk Flags
Clean Litigation RecordNeat Method has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Neat Method System Growth
Total Units
91
Franchised
91
Company-Owned
0
Neat Method currently operates 91 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 13 | 2 | 60 |
| 2020 | 77 | 3 | 70 |
| 2021 | 21 | 0 | 91 |
Transfers: 7 | Closures: 5
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$5.5M
Net Income
$700K
Total Assets
$2.8M
Audited by LENAHAN, SMITH & BARGIACCHI, PC for year ending December 31.
Neat Method Franchise — FAQ
The total investment to open a Neat Method franchise ranges from $34,000 to $38,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $30,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Neat Method charges a royalty fee of 10% to 20% of Service Revenue, variable based on territory tier and trailing twelve month revenue targets. of gross sales, plus a None currently contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Neat Method Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Neat Method to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Neat Method franchise owners report . This is based on a sample of 70 units. Past performance does not guarantee future results.
Neat Method has been franchising since 2017. The FDD shows an investment range of $34,000-$38,000, a 10% to 20% of Service Revenue, variable based on territory tier and trailing twelve month revenue targets. royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $30,000 and the total investment ranges from $34,000 to $38,000 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Neat Method and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Neat Method or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com