The Grout Expert Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$23,550 - $49,000
Franchise Fee
$10,000
Min Cash Required
$5,000
Total US Locations
2
Business Summary
The Grout Expert provides specialized services for grout, including cleaning, repair, maintenance, and replacement. These services are offered to both homeowners and the business community. Franchisees typically operate their business from their residence, utilizing products from an approved list of manufacturers or vendors. The company supports franchisees with marketing assistance, system implementation, territory selection, and training for their staff to promote and deliver The Grout Expert services.
Corporate History
The Grout Expert's underlying business concept began in May 1999 as a proprietorship named Bay Grout, founded by Hoang Chieu Nguyen. The business name was changed to The Grout Expert in 2001. The Grout Expert Franchising, Inc. was chartered as a California corporation on April 17, 2008, and began offering franchises on October 15, 2010.
Financial Overview
Investment Range
$23,550 - $49,000
Franchise Fee (Low)
$10,000
Franchise Fee (High)
$17,500
Minimum Cash Required
$5,000
Royalty %
6%
Marketing %
0.5%
Equipment Costs (Low)
$2,900
Equipment Costs (High)
$9,525
Working Capital
$7,500
Audited Financials
Yes
Offers Financing
No
Financing Details
The Grout Expert does not offer any direct financing or guarantees for costs or leases associated with opening or operating a franchise.
Performance Metrics
Total US Locations
2
Franchised Units
1
Corporate Units
1
Franchising Since
2010
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
The Grout Expert has no litigation required to be disclosed in this Disclosure Document.
Bankruptcy History
The Grout Expert has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, The Grout Expert franchisees must be in good standing, provide written notice of their intent to renew between 90 and 180 days before the initial term expires, sign the then-current franchise agreement (which may have different terms), pay any outstanding balances, sign a general release of claims, and pay a renewal fee equal to 10% of the initial franchise fee being charged to new franchisees at that time.
Training & Support Program
Franchisor Assistance
The Grout Expert provides pre-opening support by assigning a protected territory and conducting a 7-day 'The Grout Expert Academy' training program for the franchisee and one additional person at or near its Menlo Park, California headquarters. This initial training also includes three days of in-market sales training and a recruiting workshop. During operation, The Grout Expert lists the franchisee's contact information on its website and offers a telephone advisory service for sales, operational, administrative, and management questions. The franchisor may create additional training materials for employees (e.g., seminars, manuals, audio/video), identifies new services and products, and trains franchisees on their implementation. Franchisees are lent confidential Operations Manuals that may be updated. Once 10 franchises are operating, annual conferences will be held to discuss system improvements and other topics, though franchisees pay travel and living expenses. The franchisor also develops advertising and marketing materials and requires franchisees to use a call center service for incoming calls and appointment scheduling at a monthly fee.
Initial Training Hours
72
Training Location
Corporate headquarters in Menlo Park, California
Ongoing Support
The Grout Expert provides ongoing support by listing franchisee contact information on its website and maintaining a telephone advisory service for sales, operational, administrative, and management questions. It may create additional training materials for employees (e.g., seminars, manuals, audio/video) and identifies new services and products, providing training for their implementation. Franchisees are lent confidential Operations Manuals that may be updated. Once 10 franchises are operating, annual conferences will be held to discuss system improvements and other topics, though franchisees pay travel and living expenses. The franchisor also develops advertising and marketing materials and requires franchisees to use a call center service for incoming calls and appointment scheduling at a monthly fee.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Mobile
Owner Participation
Absentee Allowed
Territory Type
Exclusive
Staff Count
2
Territory Size Requirements
The Grout Expert territories are defined to contain at least 150,000 single-family residences. These territories are outlined by county boundaries, geographic or highway boundaries, or specific ZIP codes as established by the US Postal Service.
Staffing Notes
The Grout Expert requires that the franchise business be directly supervised on a day-to-day basis by a manager who has successfully completed the franchisor's training program. This manager must not have business relationships with competitors and must sign non-disclosure and non-compete agreements. The franchisee is not required to personally supervise the business, as long as a qualified manager is in place. The initial training covers the franchisee and one additional person, presumably this manager.