The Grout Doctor Franchise Costs, Fees & FDD

Year Business Began: 1992

Franchising Since: 2001

Headquarters: Salt Lake City, Utah

Estimated Number of Units: 85

Franchise Description: Grout Doctor Global Franchise Corp. is the franchisor. Franchisees operate a mobile service franchise program known as “The Grout Doctor,” specializing in residential and commercial grout, tile and stone cleaning, sealing, re-coloring, repair, re-grouting and re-caulking maintenance services, refinishing, permanent protective coatings and other supplemental services.
Training Overview: The operating principal must successfully complete the initial training program. Franchisees may also bring one partner, spouse or employee to the training program at no additional fee. The length of training depends on the prior experience of the attendees but should last approximately 60 hours over five to eight days, with a mix of online and hands-on training. The location of the regional training will be determined by the trainer setting up the training schedule. Regional training may occur in Utah, Florida, Tennessee, North Carolina or Colorado. On the job training is typically performed at customer/vendor locations. Online classroom training will be at the franchisee’s home or another location of the franchisee’s choice. The franchisor may require the operating principal to attend additional training if the franchisor determines he or she needs it. After operating the franchise for at least three months, franchisees may choose to offer supplemental services in connection with the franchise. These optional services require additional training and certification. The franchisor may hold annual conferences to discuss improvements, new developments, mutual concerns and business issues. Attendance is mandatory for the first three years after franchisees open and bi-annually thereafter. If franchisees feel additional on-site assistance is necessary, the franchisor will provide assistance and supervision at their franchise business location. For the franchisor’s services franchisees will be charged the standard rate in effect at the time.

Territory Granted: The franchisor will grant franchisees the right to use the system and proprietary marks solely within a specific geographic area, the boundaries of which will be negotiated prior to signing and described in the Franchise Agreement. The specific size of the territory is negotiable based upon the population density, the number of households in the territory, whether the location is in a metropolitan or rural area and other comparable factors. The territory will be designated by a contiguous zip code list and will generally have a base of between 150,000 and 200,000 owner-occupied households. The franchisor the right to adjust the boundaries of the territory if the number of owner-occupied households increases by 20% or more; other than due to household increases. The territory may not be altered except by mutual agreement. Franchisees will operate from one office location and the franchisor recommends that the location be the franchisee’s personal residence, as this approach will save him/her a substantial amount of money. Franchisees may, however, select a commercial office building, industrial office complex or business park facility as their Grout Doctor location. The franchisor must review and approve, in writing, the franchisee’s selection of location if it is other than his/her home.

Obligations and Restrictions: The operating principal must personally participate in the operation of the franchise business. The operating principal must work sufficient hours to operate the franchise business at maximum capacity and efficiency. Neither franchisees, their operating principal, their manager, nor employees can have an interest in or business relationship with any competing business and must keep free from activities which would be detrimental to or interfere with the operation of the franchise business or detrimental to the franchise system. Franchisees must provide only those products and services specified and approved by the franchisor in writing.

Term of Agreement and Renewal: The length of the franchise term is seven years. If franchisees are in good standing, they can enter into a new successor franchise agreement for an additional seven-year term.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or other obligation. The initial franchise fee for honorably discharged or retired veterans of any of the United States Military Services is reduced by 50% percent.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$15,000	$20,000
Expenses During Training (per person)	$150	$2,000
Advertising (3 months)	$6,000	$9,000
Vehicle (3 months)	$0	$1,000
Telephone/High Speed Internet Capability	$0	$200
Computer System	$0	$500
Insurance, Liability (3 months)	$300	$500
Insurance, Auto (3 months)	$330	$600
Initial Equipment, Tools, and Office Furniture (3 months)	$180	$680
Initial Inventory (3 months)	$250	$500
Initial Forms, and Office Supplies (3 months)	$0	$50
Licenses	$0	$200
Data Center Fee (3 months)	$555	$555
Additional Funds (3 months)	$1,000	$2,000
ESTIMATED TOTAL	$23,765	$37,785

 
Other Fees

Type of Fee	Amount
Royalty	From 9% down to 6% of monthly gross sales based on a tiered royalty payment schedule, or a minimum payment of $0.00383 per household, whichever is greater.
Failure to Submit Royalty Report	Amount equal to the minimum royalty payment, plus $1,000 drafted from the franchisee’s operating account.
Data Entry Report Late Fee	$1,000 per report.
Message Retrieval, Distribution and Data Entry	$185 per month. Late fees and non-sufficient funds fees apply as applicable.
Promotional Materials	Cost plus 10%.
Advertising Fund Fee	Up to 3% of monthly gross sales upon 60 days’ notice; currently 1%.
Marketing Group Association	As established by the association.
Additional Trainees at Initial Training	$250 per person per day.
Additional In-Person Training or Assistance	$300 per day per person.
Supplemental Services Training Fee	Currently, $600 per person.
New Operating Principal or New Manager Training	$250 per person per day.
Relocation Fee	$1,000, plus $0.05 per additional household.
Transfer Fee	$3,500 plus the franchisor’s out-of-pocket expenses.
Successor Franchise Fee	$500
Conventions, Periodic, Meetings and Seminars	Estimated at $500 to $1,000 for each attendee at any convention, periodic meeting, or seminar.
Convention Non-Attendance Fine	$2,000 fine per person required to attend and complete and be certified in any training missed at that meeting/seminar at $250 per day per person.
Failure to Attend Meetings or Seminars	$250 fine per person and complete and be certified in any training missed at that meeting/seminar at $250 per day per person.
Supplier Evaluation Fee	$500 minimum to cover costs and expenses.
Non-Approved Suppliers Fee	$250 per violation per day.
Insurance	Costs incurred by franchisor.
Fees on Default and Indemnity	Attorney’s fees, costs, interests and audit costs.
Interim Management Fee	The franchisor’s costs plus 10% of gross sales.
Audit Charge	Cost of audit.
System Non-Compliance	Amount to be specified in the operations manual. Currently there are various charges ranging from $10 to $250 per day/per instance for non­-compliance.
Customer Complaint Resolution Fee	Varies by infraction.
Late Payment Fee/Non-Sufficient Fund Fee	5% of amount owing per month plus $25 for each on-sufficient fund transaction plus interest.
Local Advertising Requirement	20% of monthly gross sales or $2,000 per month, whichever is greater, during the first 6 months. Thereafter the minimum allotment is $1,200 per month.
Local Marketing Non-Compliance Fee	$100 for second infraction. $150 for third infraction.
Designated Form Non-Compliance Fee	$100 for second infraction. $150 for third infraction.
Failure to Submit Advertisements, Tear Sheets, Advertising Bills Fee	Varies by infraction.
Unauthorized Marketing Number and Email Fee	Varies by infraction.
Failure to Comply with Trademarks, Products Standards, and Operations Standards Fines	Varies by infraction.
Post-Termination Non-Compliance Fee	$250 per day.
Technology Fee	Currently there is not a charge for use of the software and other technology, but the franchisor reserves the right to charge a monthly or annual fee in the future.
Credit Card Processing Fee	4.5% processing fee.
Required Purchase Amount	$60 per month.
Non-Use of Grout Doctor Product Fee	$10 per instance plus one case of product (currently $81) plus shipping at the franchisee’s expense.
Failure to Purchase Products Fee	$10 per instance plus one case of product (currently $81) plus shipping at the franchisee’s expense.
Failure to Comply with Uniform and Name Badge Policy	$5 per day per individual.
Failure to Follow No Deposits Policy	Varies by infraction.

The above information has been compiled from the FDD of The Grout Doctor. Year of FDD: 2025.
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