For the most up-to-date financial information, check out our latest FDD Talk post analyzing N-Hance Wood Refinishing’s average revenues, expenses, and/or profits.

In this FDD Talk post, you’ll learn the following:

• Section I – Background information on the N-Hance franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for an N-Hance franchise, based on Item 7 of the company’s 2019 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for an N-Hance franchise, based on Items 5 and 6 of the company’s 2019 FDD

• Section IV – Number of franchised and company-owned N-Hance outlets at the start of the year and the end of the year for 2016, 2017, and 2018, based on Item 20 of the company’s 2019 FDD

• Section V – Presentation and analysis of N-Hance’s financial performance representations, based on Item 19 of the company’s 2019 FDD, including information on the:

• 2018 average and median revenue per owner, average revenue per job, average solutions cost as a percentage of revenue, and average tech labor cost as a percentage of revenue for the top 5%, top 10%, 1st quartile, 2nd quartile, 3rd quartile, 4th quartile, bottom 10%, and bottom 5% of the 108 N-Hance franchise owners who operated their franchises for at least 13 months as of December 31, 2018 and submitted annual financial data to N-Hance for 2018 (“Responding Franchise Owners”), who collectively own 299 N-Hance business franchises (the “Responding Franchises”)

Section I – Background Information

22 Things You Need to Know About the N-Hance Wood Refinishing Franchise

Announces New Floor Sanding Service

1.  In early April 2019, N-Hance Wood Refinishing launched a new and innovative floor sanding service, which will allow for most homeowners with engineered, prefinished, or traditional wood floors to refresh their floors with minimal dust and inconvenience, making it a great alternative to traditional floor sanding.

2.  The N-Hance floor sanding process removes scratches, dirt, and wear marks and applies a water-based finish to prevent the floor from yellowing over time. The brand also offers an ultraviolet (UV) light curing technology which creates an instant, hardened finish as well as a 7-year anti-microbial release to ensure a more beautiful and healthier home.

3.  Dan Tarantin, CEO of Harris Research Inc., the parent company of N-Hance Wood Refinishing, said, “With home remodeling on the rise, homeowners are looking for new and affordable ways to revamp their once beautiful hardwood floors rather than going through the hassle of tearing them out and replacing them. This new revolutionary service allows customers to restore their floors with a quick and easy solution that minimizes downtime and family disruption all while saving money on what would otherwise be a costly update.”

4.  N-Hance uses a state-of-the-art sander that offers an extremely even finish and doesn’t leave drum marks or chatter marks/waves like traditional drum sanders can. Its ability to counter rotate means it can be used effortlessly against the grain without causing the typical cross grain sanding marks. It has a unique diamond abrasive technology that can be used to remove harder finishes such as aluminum oxide without consuming paper-based abrasive products.

5.  The N-Hance sander can be used on floors with as little as 1/8 inch of wood, which means it can be used on engineered hardwood floors and many others that professional sanders often walk away from. The process is virtually dust-free for homeowners, keeping their homes cleaner and healthier.

6.  N-Hance floor sanding provides:

• A virtually dust-free experience;
• Removal of those graying high-traffic areas;
• Removal of scratches and deep impressions;
• The finish is cured immediately using UV light technology allowing for homeowners to regain access to their home/refinished room in minutes;
• Endless color options to choose from to stain your beautiful refinished floors;
• Extended life for most engineered, prefinished, and traditional wood flooring.

Announces Partnership with American Forests

7.  At the beginning of September 2019, N-Hance Wood Refinishing announced its partnership with American Forests, the nation’s first forest conservation organization founded in 1875. The partnership is truly complementary as both organizations are committed to impactful conservation efforts to better the planet.

8.  In an effort to protect wildlife and ensure every living thing on Earth has a better future, American Forests has planted more than 60 million trees in forest restoration projects in all 50 states since 1990. N-Hance is committed to donating $1 for every kitchen or floor refinishing project to American Forests as part of the partnership.

9.  For every dollar donated, one tree will be planted in large forest landscapes across the United States such as Northern Rockies and Cascades, Lower Rio Grande Valley in Texas, fire-damaged areas in California, stripped mineland in West Virginia, and an expanded focus on urban forests as well. N-Hance projects nearly 10,000 trees to be planted in the first year of this partnership.

10.  Americans are using a staggering 27 percent of the wood commercially harvested worldwide. N-Hance has always been an environmentally-conscious organization committed to reducing that number by refinishing existing wood rather than tearing down additional trees to create new cabinets or floors. Every kitchen that is refinished instead of replaced has the potential to save approximately two trees from being lumbered.

11.  With over 500 franchise locations (at the time of the announcement), N-Hance provides affordable, green solutions to renew your wood cabinets and floors.

12.  Dan Tarantin, CEO of N-Hance Wood Refinishing, said, “While our services are environmentally friendly, we know there is still so much we can do to support conservation efforts which is why we are thrilled to have partnered with American Forests to take action and make impactful contributions. We are confident the partnership with a like minded organization will generate positive brand recognition with our employees and customers and bring tremendous awareness to American Forests and its nationwide efforts.”

13.  American Forests “is thrilled to be partnering with an organization in the hardwood industry that is so passionate about protecting and restoring our nation’s forests,” said Jad Daley, president and CEO of American Forests. “We are excited to be part of sharing that message with N-Hance’s clients and plant trees on their behalf.”

Seeks Master Franchise Owners in Ireland and England

14.  At the beginning of June 2019, N-Hance Wood Refinishing announced that it was seeking Master Franchise Owners in Ireland and England as the company continues an aggressive international expansion program.

15.  N-Hance is a unique wood-refinishing business that provides affordable wood refreshing, including the ability to change wood colors, flooring, cabinetry, siding, furniture, and trim refinishing, to consumers at a fraction of the cost of new cabinets or floors, most jobs completed in 1-2 days.

16.  N-Hance launched in 2006, began its global expansion in 2018, and already has more than 500 franchises around the world. As a Master Franchise Owner, an entrepreneur will own the rights to an entire region or country and have the right to develop as many franchise locations as they can in that area.

17.  According to Joe Manuszak, N-Hance’s vice president, international development, “N-Hance offers a business model designed to perform well in any market, which has led to our rapid international expansion. N-Hance Master Franchise Owners and their teams provide a full roster of wood refreshing and refinishing services, from floor and other timber renewal to complete cabinet makeovers through color renewal or replacement, that are in high demand in their countries. N-Hance’s fast, durable services, market-competitive pricing and industry-leading technology, such as Lightspeed, are creating substantial opportunities for N-Hance Master Franchise Owners in the global marketplace.”

18.  Manuszak continued, “N-Hance has already established footholds in many countries around the world, where forward-thinking entrepreneurs have begun to realize their goals of financial independence while also creating high-quality jobs and business opportunities for their communities. If interested, just reach out and we will move swiftly to answer your queries and help you realize the dream of owning your own Master Franchise.”

Company History

19.  N-Hance Wood Refinishing was founded in 2001 by Harris Research Inc. (HRI), the company behind Chem-Dry Carpet Cleaning. In the early 2000s, many Chem-Dry franchisees realized that their technicians were walking across thousands of damaged wood floors. N-Hance began as a separate franchise business to refinish and renew hardwood floors and has grown to include refinishing cabinetry, furniture, and trim work.

20.  HRI had begun research on wood refinishing many years before and did a beta launch from 2001-2003 to 10 Chem-Dry owners in the Salt Lake City, Utah area. In 2006, HRI launched N-Hance Wood Refinishing franchising in all 50 states.

21.  Using its several decades of experience with Chem-Dry, HRI quickly grew N-Hance. By 2014, N-Hance Wood Refinishing had grown to over 300 units across the United States. Today, there are N-Hance Wood Refinishing franchises in Canada, New Zealand, and Australia as well.

Entrepreneur’s Franchise 500

22.  N-Hance Wood Refinishing ranked No. 263 on Entrepreneur’s 2020 Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of N-Hance franchise costs, based on Item 7 of the company’s 2019 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Please click here for detailed information on N-Hance’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2019 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2016

• Outlets at the Start of the Year:  407
• Outlets at the End of the Year:  471
• Net Change:  +64

2017

• Outlets at the Start of the Year:  471
• Outlets at the End of the Year:  470
• Net Change:  -1

2018

• Outlets at the Start of the Year:  470
• Outlets at the End of the Year:  511
• Net Change:  +41

Company-Owned

2016

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2017

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2018

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Section V – Financial Performance Representations (Item 19, 2019 FDD) and Analysis

• Every month, N-Hance requires all franchise owners to provide certain financial and other information relating to the operation of their N-Hance businesses during that month.

• As of December 31, 2018, N-Hance had 202 US franchise owners who operated 511 US N-Hance businesses.

• Of the 202 US franchise owners who operated 511 US N-Hance businesses, 151 franchise owners (the “Mature Franchise Owners”), representing 74.7% of the total, who collectively own 407 N-Hance businesses (the “Mature Franchises”), representing 77.4% of N-Hance franchises, operated those franchises for at least 13 months as of December 31, 2018.

• Of those Mature Franchise Owners, 108 franchise owners (the “Responding Franchise Owners”), representing 53.5% of all franchise owners and 71.5% of Mature Franchise Owners, who collectively own 299 N-Hance business franchises (the “Responding Franchises”), representing 56.8% of all franchises and 71.3% of mature franchises, submitted annual financial data to N-Hance for 2018 and actively operated their business.

• N-Hance derived the information presented below from the Responding Franchise Owners about the Responding Franchises. The information has been reported voluntarily by the Responding Franchise Owners and has not been audited, reviewed, or compiled by any independent accountant.

• Most of N-Hance’s franchise owners have purchased several franchises covering separate geographic areas. N-Hance estimates that a franchisee is able to achieve overhead efficiencies by supporting multiple franchises from a single operating base that is conveniently located to the franchises. N-Hance has not independently verified that estimate.

• The chart below shows a revenue performance grid for Responding Franchise Owners and Responding Franchises for the one-year period ending on December 31, 2018, presented by various performance groupings from the top performing to the bottom performing groups of Responding Franchise Owners.

Top 5%