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The Groutsmith Franchise Costs & Fees

Date of Incorporation: 1992
Franchising Since: 2010
Headquarters: Sarasota, Florida

Business Description: The name of the franchisor is Groutsmith Franchising, Inc. Groutsmith franchisees operate a grout and tile restoration and maintenance business for residential and commercial customers.

Franchise Offer: The franchisor grants franchises authorizing franchisees to use The Groutsmith trademarks to perform grout and restoration and maintenance to residential and commercial customers.

Financial Assistance: The franchisor does not offer direct financing. The franchisor does not guarantee any of the franchisee’s notes, leases or other obligations. The franchisor does offer franchisees financing sources.

Training and Assistance: Franchisees must successfully complete the franchisor’s initial training program. Initial training can be divided between office/manager and estimating/grout technician, depending on the franchisee’s choice of business structure. There is no additional fee for separating training between two people (husband/wife, father/son, partners, etc. Initial training will be approximately 80 hours over 9 to 10 days, at the franchisor’s Sarasota, Florida location, or at another approved location. Franchisees must attend and successfully complete the training and testing before the opening of the franchised business. The franchisor may require franchisees to attend on-going training/support sessions for the duration of the franchise agreement, at the franchisor’s discretion. Monthly on-going training/support sessions will be held via phone or teleconference at agreed upon dates and times.

Territory: Franchisees will be granted an exclusive territory in which they are authorized to offer and perform The Groutsmith services. The specific size of the territory is negotiable between the franchisee and The Groutsmith Franchising, Inc. and will be based upon the number of owner-occupied households in the territory, with 125,000 owner-occupied households being the target. If franchisees wish to operate their business outside of their home, prior written approval must be obtained. The franchisor will not place another franchise unit, company or affiliate unit within the territory selling similar products or services, using The Groutsmith or other trademark.

Term of Agreement and Renewal: The length of the initial franchise term is 15 years. If franchisees are in good standing, they can renew on the then-current terms.

Obligations and Restrictions: Franchisees must personally participate in the operation of the franchise business, but need not manage the business full time. The franchisor requires direct supervision by franchisees or their designated manager. Franchisees, their manager, and employees must keep free from competing enterprises. Franchisees are not required to work a certain or minimum number of hours; however, franchisees must work sufficient hours to operate their franchise business at maximum capacity and efficiency. Franchisees may provide only those products and services specified and approved by the franchisor in writing.

Estimated Number of Units: 30

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $19,900 $19,900
Start-up Package $0 $0
Expenses During Training $200 $1,500
Advertising (3 months) $6,000 $6,000
Vehicle (3 months) $0 $2,000
Vehicle Insurance $300 $1,000
Liability Insurance $300 $1,400
Additional Funds (first 3 months) $600 $3,000
ESTIMATED TOTAL $27,300 $34,400
Other Fees
Type of Fee Amount
Royalty $0 for months 1-3; $400/month for mos. 4-12; $600/month for year 2; $800/month for year 3; $1,000/month for years 4-15
Call Center $15 per set appointment plus $2.00 each for all other calls.
Renewal Fee $500
Additional Trainees $750 for 40 hours.
Advertising Fee N/A.
Cooperative Advertising N/A.
Relocation Fee $2,500
Transfer Fee $3,500 plus the franchisor’s out of pocket expenses.
Attorney’s Fees and Costs Costs incurred by the franchisor.

The above information has been taken from the FDD of The Groutsmith. Year of FDD: 2016

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