The Grout Doctor Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$23,765 - $37,785
Franchise Fee
$7,500
Total US Locations
83
Business Summary
THE GROUT DOCTOR® operates a mobile service franchise specializing in residential and light commercial services. These services include cleaning, sealing, re-coloring, repair, re-grouting, re-caulking, refinishing, and applying permanent protective coatings for grout, tile, and stone surfaces, along with other supplemental services.
Corporate History
Grout Doctor Global Franchise Corp. was incorporated in Nevada in April 2001. The company began offering THE GROUT DOCTOR® franchises in the same year, 2001. In addition to supporting its franchisees, THE GROUT DOCTOR® also supplies tools and products, manages a Data Center for franchisees, and sells products directly to the public. THE GROUT DOCTOR® has always focused solely on this line of business and has not operated under any other names or offered other types of franchises.
Financial Overview
Investment Range
$23,765 - $37,785
Franchise Fee (Low)
$7,500
Franchise Fee (High)
$20,000
Royalty %
9%
Marketing %
1%
Equipment Costs (Low)
$180
Equipment Costs (High)
$680
Working Capital
$1,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Grout Doctor Global Franchise Corp. received an unqualified audit opinion for its financial statements for the years ending December 31, 2024, 2023, and 2022, indicating that the statements present fairly in all material respects. Management has confirmed that there are no impairments to trademark rights and no material contingencies that would significantly impact the company's financial position as of December 31, 2024. The auditors also found no substantial doubt about THE GROUT DOCTOR®'s ability to continue as a going concern.
Financing Details
THE GROUT DOCTOR® does not offer any direct or indirect financing options to its franchisees. This means that THE GROUT DOCTOR® will not provide loans or guarantees for any notes, leases, or other obligations that a franchisee might incur. Franchisees are responsible for securing all their own funding.
Performance Metrics
Total US Locations
83
Franchised Units
81
Corporate Units
2
Franchising Since
2001
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
THE GROUT DOCTOR® has no litigation to report in this section of the FDD.
Bankruptcy History
THE GROUT DOCTOR® has no bankruptcy history to report for the franchisor or its key management personnel.
Agreement Terms
Initial Term
7 years
Renewal Term
7 years
Renewal Conditions
To renew, THE GROUT DOCTOR® franchisees must be in good standing, meaning they are not in default of their agreement and have met all material terms and conditions throughout the initial term. They must also have complied with operating and quality standards and paid all financial obligations on time. Franchisees are required to pay a non-refundable successor franchise fee of $500 and sign THE GROUT DOCTOR®'s then-current franchise agreement, which may have different terms and conditions from their original contract.
Training & Support Program
Franchisor Assistance
Before opening, THE GROUT DOCTOR® assists with configuring the franchisee's territory and provides initial training. Franchisees receive a complete start-up package with initial supplies and electronic access to confidential operations manuals. THE GROUT DOCTOR® facilitates grand opening marketing efforts on behalf of the franchisee and provides a marketing strategy including direct mail and online marketing. After opening, THE GROUT DOCTOR® operates a Data Center for call retrieval and distribution, which franchisees pay a monthly fee for. THE GROUT DOCTOR® continuously updates the operations manuals to reflect system changes and offers remote or in-person assistance (the latter for a fee). Franchisees also receive THE GROUT DOCTOR® Franchise Management Software at no additional cost and access to products sold through THE GROUT DOCTOR®'s website for resale. THE GROUT DOCTOR® may also hold annual conferences (mandatory for the first three years, then biannually) and conducts periodic inspections of franchised businesses.
Initial Training Hours
60
Training Location
Online classroom training at the franchisee's chosen location, and hands-on regional training in Utah, Florida, Tennessee, North Carolina, or Colorado, typically performed at customer/vendor locations.
Ongoing Support
After opening, THE GROUT DOCTOR® provides a Data Center for message retrieval and distribution, which franchisees pay a monthly fee for. THE GROUT DOCTOR® maintains the right to update confidential operations manuals, requiring franchisees to implement changes that may necessitate additional investment. Assistance is available remotely, or in-person for an additional fee plus travel expenses. THE GROUT DOCTOR® provides its Franchise Management Software at no additional cost and makes THE GROUT DOCTOR® products available for franchisees to sell to their customers. THE GROUT DOCTOR® also holds annual conferences, which are mandatory for the first three years of operation and bi-annually thereafter, with attendance fees and travel expenses borne by the franchisee. Additionally, THE GROUT DOCTOR® may conduct periodic inspections of franchised businesses and offers a standard limited warranty on products purchased directly from them.
Franchise Requirements
Ideal Candidate Profile
THE GROUT DOCTOR® seeks an operating principal who will personally participate in the direct operation and supervision of the franchise business, dedicating sufficient hours to ensure maximum capacity and efficiency. This operating principal should either manage the business directly or supervise a trained manager. If the franchisee is an entity, individuals owning 5% or more must personally guarantee the agreement. The ideal candidate must also ensure compliance with all laws and regulations, including payment card industry standards.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Hands-On
Territory Type
Exclusive
Territory Size Requirements
THE GROUT DOCTOR® territories are exclusive and are defined by a list of contiguous zip codes. The size of the territory is negotiated and generally includes between 150,000 and 200,000 owner-occupied households. The exact size is based on factors like population density and whether the area is metropolitan or rural. THE GROUT DOCTOR® reserves the right to adjust territory boundaries if the number of owner-occupied households increases by 20% or more.
Staffing Notes
THE GROUT DOCTOR® franchisees are solely responsible for all aspects of hiring, firing, compensating, and training their employees. Franchisees must ensure all employees and contractors are efficient, competent, sober, drug-free, and courteous, and must require them to sign non-disclosure agreements. Employees and contractors are also required to wear THE GROUT DOCTOR® uniform and an identification badge while performing services. Franchisees must employ adequate personnel to operate their business at maximum capacity and efficiency. THE GROUT DOCTOR® does not provide assistance with hiring or managing employees beyond management training.