The Groutsmith Franchise Costs, Fees & FDD

Year Business Began: 1992

Franchising Since: 2010

Headquarters: Sarasota, Florida

Estimated Number of Units: 50

Franchise Description: The franchisor is Groutsmith Franchising, Inc. The franchisor grants franchises authorizing franchisees to use “The Groutsmith” trademarks to perform grout and tile restoration and maintenance to residential and commercial customers.
Training Overview: 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 the training of the initial 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 training will be comprised of both classroom and field work. Franchisees will be doing physical work at actual customers’ locations. The franchisor may require franchisees to attend on-going training/support sessions for the duration of the Franchise Agreement, at the franchisor’s discretion. Quarterly on-going training/support sessions will be held via phone or teleconference at agreed upon dates and times. These meetings should require approximately one hour quarterly.

Territory Granted: 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 franchisor and will be based upon the number of owner-occupied households in the territory, with 125,000 owner-occupied households being the target. Franchisees will operate out of one office location, generally their home. 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. Franchisees may not solicit customers outside of their territory. Franchisees may provide services only in their territory, except they may service customers in other areas under certain limited conditions, including referrals from customers, acquaintances and/or from their family and friends.

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, they 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.

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.

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

Estimated Initial Investment

Name of Fee	Low	High
Franchise Fee	$34,900	$34,900
Start-up Package	$0	$0
Expenses During Training	$200	$1,000
Advertising (3 months)	$6,000	$6,000
Vehicle (3 months)	$0	$1,500
Vehicle Insurance (3 months)	$300	$600
Telephone/Internet (3 months)	$0	$150
Computer	$0	$500
Liability Insurance	$300	$600
Office Furniture	$0	$500
Forms/Office Supplies (3 months)	$0	$100
Licenses	$0	$250
Call Center (3 months)	$0	$0
Initial Inventory (3 months)	$0	$300
Additional Funds (3 months)	$800	$3,000
ESTIMATED TOTAL	$42,500	$49,400

 
Other Fees

Type of Fee	Amount
Royalty	$0 for months 1-6; $600/month for mos. 7-12; $800/month for year 2; $1,000/month for year 3; $1,250/month for years 4-15.
Call Center	$15 per set appointment plus $2 each for all other calls.
Renewal Fee	$500
Additional Trainees	$1,000 for one training week.
Advertising Fee	N/A
Cloud Based Software	$52 per month for two users.
Cooperative Advertising	N/A
Relocation Fee	$3,500
Transfer Fee	$5,000 plus the franchisor’s out of pocket expenses.
Attorney’s Fees and Costs	Costs incurred by the franchisor.

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