Sir Grout Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$127,375 - $197,720
Total US Locations
71
Business Summary
Sir Grout operates businesses that specialize in providing high-quality grout and tile cleaning, sealing, caulking, and restoration services. Sir Grout also offers additional services such as slip-resistant product application, stone restoration, and various coatings for tile, grout, stone, concrete, and metal. These services are designed to improve and protect the health and appearance of both residential and commercial properties.
Corporate History
Sir Grout Franchising, LLC was formed in Delaware on March 13, 2007. Sir Grout began offering its franchises in August 2007. In September 2021, Sir Grout was acquired by Threshold Brands, LLC, which is a subsidiary of HS Group Holding Company, LLC. HS Group Holding Company, LLC is mainly owned by private equity funds managed by The Riverside Company, which also manages other franchise brands.
Financial Overview
Investment Range
$127,375 - $197,720
Franchise Fee (High)
$60,000
Royalty %
6%
Equipment Costs (Low)
$23,525
Equipment Costs (High)
$75,020
Working Capital
$16,650
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial statements for Sir Grout's parent company, HS Group Holding Company, LLC, show a consolidated net loss of over $13 million for the year ended December 31, 2024. The company also has negative working capital, with current liabilities significantly exceeding current assets. Management is currently negotiating to extend the maturity date of a substantial term loan that is due in December 2025. Furthermore, the franchisor's disclosure document specifically highlights that the guarantor's financial condition, as reflected in these statements, calls into question Sir Grout's ability to provide services and support to its franchisees. The auditors noted a restatement of members' equity in 2024 but stated their opinion was not modified by this.
Financing Details
Sir Grout may offer financing for up to the full amount of the initial franchise fee. This financing is available to prospects who meet Sir Grout's qualifications, including creditworthiness. If a franchisee qualifies and accepts this financing, they must sign a Promissory Note. The note requires payments via electronic funds transfer in monthly installments for up to 24 months, with an annual interest rate of 12%. The Promissory Note can be prepaid without penalty. If payments are late, Sir Grout may impose late charges, including an initial 5% of the unpaid amount and additional 5% charges for continued delinquency.
Performance Metrics
Total US Locations
71
Franchised Units
71
Corporate Units
0
Franchising Since
2007
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Sir Grout has no litigation history to report.
Bankruptcy History
Sir Grout has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Conditions
To renew their Sir Grout franchise, franchisees must meet several conditions. Sir Grout must be actively offering franchises in the franchisee's territory. The franchisee and their owners must have substantially complied with their agreement throughout the term and not have received three or more notices of default. All financial obligations to Sir Grout and its suppliers must be satisfied. Franchisees must provide written notice of their intent to renew at least six months before the current agreement expires and pay a renewal fee of $2,500. They will need to sign Sir Grout's then-current franchise agreement, which may have different terms, along with a Renewal Amendment that includes a general release of claims. Additionally, franchisees must hold all necessary licenses and permits, and satisfy any other renewal conditions Sir Grout may require.
Training & Support Program
Franchisor Assistance
Before opening, Sir Grout assists franchisees by designating their territory and providing an initial training program for two people. Sir Grout sells a "Right Start Package" of necessary products and supplies, provides vehicle criteria, and a list of approved products. They also grant digital access to the Confidential Operating Manual, design and host the brand's websites, and provide one Sir Grout branded email license. After opening, Sir Grout administers a Brand Fund for advertising and marketing purposes and manages a Business Center that handles inbound and outbound calls, dispatch, scheduling, and customer surveys. Franchisees receive access to web-based customer relationship management (CRM) software. Sir Grout maintains a toll-free number for franchisee consultation and customer contact, reviews all advertising materials, assists with computer equipment purchases, and provides various customizable forms and templates. Additionally, Sir Grout offers additional branded email licenses for purchase.
Initial Training Hours
35
Training Location
As designated by Sir Grout
Ongoing Support
After opening, Sir Grout provides ongoing support by administering a Brand Fund for advertising and marketing, and granting franchisees access to web-based customer relationship management software. Sir Grout also runs a Business Center that handles inbound and outbound calls for the franchised businesses, managing up to 70 hours of telephone time per week, handling dispatch functions, scheduling jobs, confirming appointments, and conducting customer surveys. Sir Grout reviews all advertising materials developed by franchisees to ensure compliance with brand standards. A toll-free telephone number is maintained for franchisees to consult with Sir Grout and for potential customers to contact the business. Sir Grout also assists franchisees in obtaining required computer equipment and provides various customizable forms and templates. Additionally, Sir Grout may require franchisees and their managers to attend specialized product training and other periodic training courses, for which tuition and fees may be charged.
Franchise Requirements
Ideal Candidate Profile
Sir Grout seeks qualified individuals or legal entities interested in operating a franchise. Ideal candidates are creditworthy and are expected to diligently perform their obligations. The franchisee or their designated manager must serve as the primary contact, personally supervise day-to-day activities, and exert full-time best efforts to manage, promote, and enhance the business. They should successfully complete initial and any required additional training, and not engage in conflicting business activities.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Full-Time
Territory Type
Limited
Territory Size Requirements
Sir Grout typically assigns franchisees a territory that contains approximately 100,000 qualified households, where a qualified household has an annual income of $100,000 or more. The specific boundaries of the territory are determined by Sir Grout based on factors like population density, existing competition, potential customer base, and other economic, demographic, and geographic considerations. Territories can be defined using geographic boundaries such as zip codes, cities, counties, portions of counties, or specific streets and highways.
Staffing Notes
The Sir Grout franchise requires the franchisee or a designated manager to personally supervise the day-to-day operations of the business and dedicate full-time efforts to managing, promoting, and enhancing it. This manager must successfully complete Sir Grout's initial and any additional required training. Franchisees are generally not permitted to hire subcontractors to perform the required services without Sir Grout's prior written consent.