Granite Garage Floors Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$227,367 - $390,367
Franchise Fee
$45,000
Total US Locations
55
Business Summary
Granite Garage Floors Franchising, LLC offers franchises that sell, market, and install residential garage floor coating systems. These services involve refurbishing concrete garage floors with an epoxy coating system. The business operates under the Granite Garage Floors brand, utilizing specific marks, color schemes, and operating procedures.
Corporate History
Granite Garage Floors Franchising, LLC was formed in Georgia on June 21, 2013, and began offering franchises in the same year. The business concept originated with a predecessor company, The Garage Floor Coating Company, LLC, which operated a residential garage floor coating business from 2011 until December 2023 and was the original owner of certain trademarks. On May 13, 2022, Granite Garage Floors Franchising, LLC's membership interests were acquired by Threshold Brands, LLC.
Financial Overview
Investment Range
$227,367 - $390,367
Franchise Fee (Low)
$45,000
Franchise Fee (High)
$60,000
Royalty %
6.5%
Marketing %
2%
Equipment Costs (Low)
$101,867
Equipment Costs (High)
$130,367
Working Capital
$37,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
HS Group Holding Company, LLC, the parent company of Granite Garage Floors Franchising, LLC, reported significant consolidated net losses of $13,009,103 in 2024 and $10,469,007 in 2023. As of December 31, 2024, the company had negative working capital, with current assets of $14,019,802 and current liabilities of $37,247,095. A substantial portion of this, $30,434,803, is the current portion of long-term debt due by December 23, 2025. Management is currently in negotiations with lenders to extend the maturity date of this debt. Despite these financial challenges, the independent auditor's report for 2024 did not include a going concern qualification, although the auditors are required to evaluate conditions that may raise substantial doubt about the company's ability to continue.
Financing Details
Granite Garage Floors Franchising, LLC may offer financing for up to the full $60,000 Initial Franchise Fee to qualified prospects. This financing would be structured as a Promissory Note, with monthly installments for up to 24 months, accruing interest at an annual rate of 12%. All owners and their spouses are required to guarantee the payment of amounts owed under the Promissory Note. Failure to make payments under the note within specified timeframes could result in late charges and default under both the Promissory Note and the Franchise Agreement, which may lead to termination. The franchisor reserves the right to sell or assign the Promissory Note, which would relieve them of primary obligation and potentially limit the franchisee's defenses related to the note.
Performance Metrics
Total US Locations
55
Franchised Units
55
Corporate Units
0
Avg Square Footage
1,000
Franchising Since
2013
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Granite Garage Floors Franchising, LLC has no litigation to report in Item 3 of its FDD.
Bankruptcy History
Granite Garage Floors Franchising, LLC has no bankruptcy information to report in Item 4 of its FDD.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Granite Garage Floors Franchising, LLC franchisees must provide written notice at least six months before the current term expires. They must be in good standing, meaning they are not in default of their agreement and have not received three or more notices of default during the term, regardless of whether those defaults were cured. Franchisees must also have paid all amounts due to the franchisor and its affiliates, and their suppliers. They are required to refurbish and upgrade their office, warehouse, and vehicles to meet current brand specifications, complete any updated training requirements, and sign the then-current form of franchise agreement, which may have different terms. A renewal fee of $1,500 and a general release must also be provided.
Training & Support Program
Franchisor Assistance
Before opening, Granite Garage Floors Franchising, LLC assists franchisees by designating their territory, providing initial training to the franchisee and one other person, advising on initial equipment and supply orders, and helping establish business relationships with approved suppliers. The franchisor provides bookkeeping software, four branded email licenses, and a template for initial launch advertising. They also approve the franchisee's opening and sell and install a required vehicle upfit package and wrap. After opening, ongoing support includes technical, managerial, and administrative advice via phone and email. The franchisor may also offer additional equipment and supplies for purchase, review requests for new items or suppliers, and conduct additional training programs, some of which may be mandatory. They manage a Brand Fund for advertising and marketing, may develop advertising materials for purchase, and review franchisee-created advertising. Other support includes updating operation manuals, convening meetings or conventions, providing website development and Internet Presence management, inspecting business operations and issuing action plans, and providing forms and templates, as well as payment processing services and demonstration kits.
Initial Training Hours
80
Training Location
Virtual / Designated Location
Ongoing Support
After opening, Granite Garage Floors Franchising, LLC provides ongoing support to its franchisees through various means. This includes technical, managerial, and administrative advice provided by telephone and email. The franchisor may also offer optional on-site extended assistance for a fee. Franchisees may purchase additional equipment and supplies from the franchisor or its affiliates. The franchisor reviews requests for new supplies, equipment, services, or suppliers. Additional training programs may be conducted periodically for franchisees and their employees, which may be mandatory. The franchisor manages the Brand Fund for advertising and marketing and may make marketing materials available for purchase. Manuals are regularly updated. Mandatory meetings and conferences are convened for franchisees. The franchisor provides website development and maintenance services, along with support for any approved Internet Presence, such as business profiles and review platforms. They also conduct periodic inspections of franchise operations, providing written action plans for any necessary corrections. Additionally, franchisees receive various forms and templates, payment processing services, and demonstration kits.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Supervisory
Territory Type
Limited
Staff Count
10
Territory Size Requirements
Granite Garage Floors Franchising, LLC defines its franchise territories as a geographic area that includes a minimum population of 250,000 households. The boundaries of these territories may be described using methods such as a radius from a specific location, zip codes, one or more counties, or an entire metropolitan area.
Staffing Notes
Granite Garage Floors franchises are expected to have an Operating Principal who supervises all business decisions and binds the franchisee in dealings with the franchisor. This Operating Principal, who can be any individual with an equity interest in the franchisee's entity, must complete the initial training program and be actively supervising the business's operation at all times. The staff structure includes Installers and Part-Time administrative personnel, with job descriptions and compensation plan templates provided in the Operations Manual. Initial training is provided for the Operating Principal and up to one other person, and additional training is available for subsequent employees. The business may be set up to support up to 10 technicians.