About NETH Franchise
NE Tiny Homes specializes in creating innovative living solutions, focusing on style, efficiency, and versatility for modern living.
Franchisees develop and operate businesses that build high-quality Accessory Dwelling Units (ADUs) and transform garages into functional, stylish spaces.
They offer a diverse range of options, from high-end ADUs to practical mid-range and economical compact designs, catering to homeowners and individuals seeking affordable
NETH Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $75,000 | One-time payment upon signing |
| Royalty Fee | 5% of your gross sales or $5,000 per month, whichever is greater of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of gross sales (Brand Fund Contribution); 3.5% of your gross sales, or minimum of $3,500 whichever is greater (Local Marketing/Required Spending); up to 5% of gross sales per month (Market Cooperative Contribution) | National brand fund |
| Total Investment Range | $147,000 – $296,000 | Includes build-out, inventory, working capital |
The investment range of $147K–$296K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of your gross sales or $5,000 per month, whichever is greater) and marketing fee (1% of gross sales (Brand Fund Contribution); 3.5% of your gross sales, or minimum of $3,500 whichever is greater (Local Marketing/Required Spending); up to 5% of gross sales per month (Market Cooperative Contribution)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial franchise fee (see Note 1) | $50,000 | $75,000 |
| Rent and Lease Security Deposit (see Note 2) | $0 | $2,000 |
| Utilities (see Note 3) | $0 | $1,000 |
| Leasehold Improvements (see Note 4) | $0 | $20,000 |
| Market Introduction Program/Setup Fee For Vendors (see Note 5) | $20,000 | $30,000 |
| Furniture, Fixtures, and Equipment (see Note 6) | $5,000 | $10,000 |
| Computer Systems (see Note 7) | $3,000 | $10,000 |
| Insurance (see Note 8) | $5,000 | $20,000 |
| Vehicle (see Note 9) | $5,000 | $10,000 |
| Signage (see Note 10) | $2,500 | $5,000 |
| Office Expenses (see Note 11) | $500 | $1,000 |
| Licenses and Permits (see Note 12) | $1,500 | $2,000 |
| Professional Fees (lawyer, accountant, etc.) (see Note 13) | $2,000 | $5,000 |
| Travel, lodging and meals for initial training (see Note 14) | $2,500 | $5,000 |
| Additional funds (for first 3 months) (see Note 15) | $50,000 | $100,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $20,000 plus any broker fees and other out-of-pocket costs we incur |
| Renewal Fee | $45,000 |
| Technology Fee | Currently, $1450 per month (Software subscription) |
| Audit Fee | Our actual cost (Records audit) |
| Replacement / Additional Training fee | $500 per day per person. |
| Third party vendors | Pass-through of costs, plus reasonable administrative charge. Currently $4950 per month |
| Contact Center | 2% of monthly gross sales or $1,000 per territory per month, whichever is greater |
| Non-compliance fee | $500 (initial), then $250 per week |
| Reimbursement | Amount that we spend on your behalf, plus 10% |
| Late fee | $100 plus interest on the unpaid amount at a rate equal to 18% per year |
| Insufficient funds fee | $30 |
| Costs of collection | Our actual costs |
| Special support fee | Our then-current fee, plus our expenses. Currently, $500 per day. |
| Customer complaint resolution | Our expenses |
| Special inspection fee | $500, plus our out-of-pocket costs |
| Non-compliance cure costs and fee | Our out-of-pocket costs and internal cost allocation, plus 10% |
| Liquidated damages | An amount equal to royalty fees and Brand Fund contributions for the lesser of (i) 2 years or (ii) the remaining weeks of the franchise term. |
| Indemnity | Our costs and losses from any legal action related to the operation of your franchise |
| Prevailing party’s legal costs | Our attorney fees, court costs, and other expenses of a legal proceeding, if we are the prevailing party |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 11 hours classroom, 5 hours on-the-job |
| Classroom Training | 11 hours |
| On-the-Job Training | 5 hours |
| Training Location | Our Location(s)/HQ (East Providence, RI) |
| Additional Training | If you need to send a new general manager to our training program, we will charge a fee, which is currently $500 per day. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | approximately 350,000 people |
| Description | Your franchise agreement will specify a territory, which will be determined by us. Your territory will have a population of approximately 350,000 people, however, we may use other raw data to determine the Territory. In your territory, we will not establish either a company-owned or franchised outlet selling the same or similar goods or services under the same or similar trademarks or service marks as a NE Tiny Homes outlet. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years from the date of franchise agreement. |
| Renewal Term | up to 2 additional periods of 5 years each |
| Renewal Fee | $45,000 |
| Renewal Conditions | To renew your franchise, you must be in compliance with the terms of your Franchise Agreement, provide us with 180 days prior written notice of your request to renew, sign our then current form of Franchise Agreement and related agreements for the renewal term, sign a general release in our favor, pay a renewal fee of $45,000, and meet all other renewal requirements contained in the Franchise Agreement. Your Owners must be in compliance with their agreements with us, including the Owner and Spouse Agreement, and Guaranty, and they must personally guarantee the terms of your renewal Franchise Agreement, which may contain terms materially different from your current Franchise Agreement. |
| Transfer Fee | $20,000 plus any broker fees and other out-of-pocket costs we incur |
| Transfer Conditions | Pay transfer fee; buyer meets our standards; buyer is not a competitor of ours; buyer and its owners sign our then-current franchise agreement and related documents (including personal guaranty); you’ve made all payments to us and are in compliance with all contractual requirements; buyer completes training program; you sign a general release; business complies with then-current system specifications (including remodel, if applicable). |
| Termination for Cause | Franchisee may terminate if NETH violates a material provision and fails to cure within 30 days. NETH may terminate for cause including non-payment (10 days to cure), other breaches (30 days to cure), misrepresentation, false reports, bankruptcy, failure to open, loss of location, violation of confidentiality/non-compete/transfer, slander, refusal to cooperate with audits/inspections, dangerous operations (48 hours to cure), multiple defaults, felony conviction, or acts affecting the brand. |
| Non-Compete Period | During the term of the franchise and for two years after termination or expiration |
| Non-Compete Details | Neither you, any owner of the business, or any spouse of an owner may have ownership interest in, lend money or provide financial assistance to, provide services to, or be employed by, any competitor during the term. For two years after termination/expiration, the same restrictions apply within five miles of your former territory or any other NE Tiny Homes business operating on the date of termination. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Your Managing Owner must dedicate his or her full time efforts to the management and operation of the Franchised Business, be on-site at the location of the Franchised Business facility, and hold and control no less than 25% of the equity and ownership interests in the franchise. Your Managing Owner must have satisfactorily completed our initial training and must have obtained all required licenses and permits necessary to operate an NE Tiny Homes Business within your Operating Territory. |
| Required Suppliers | We have the right to require you to purchase or lease all goods, services, supplies, fixtures, equipment, inventory, computer hardware and software, real estate, or comparable items related to establishing or operating your business (1) either from us or our designee, or from suppliers approved by us, or (2) according to our specifications. |
| Supply Restrictions | You must obtain insurance as described in the Franchise Agreement and in our Brand Standards Manual. You must purchase (or lease) the point-of-sale software and hardware, and related software and hardware, that we specify. You may only market, offer, sell and provide the Approved Services, as well as any related merchandise and other products that we authorize for sale in conjunction with the Approved Services. |
| Franchisor Revenue from Suppliers | We will not derive revenue from the required purchases and leases by franchisees. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Our financing offer is to finance $25,000 of the Franchise Fee. This balance may be financed over a 24 month time period at an 10% interest rate. The buyer can choose between a loan with interest-only payments followed by a balloon payment at the end, or a loan with regular monthly payments of principal and interest. |
NETH Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
NETH Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
NETH System Growth
NETH currently operates 0 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 0 | 0 | 0 |
| 2023 | 0 | 0 | 0 |
| 2024 | 1 | 0 | 1 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by NAPER CPA GROUP for year ending December 31.
NETH Franchise — FAQ
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