The Grout Medic Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$122,000 - $175,000
Franchise Fee
$58,500
Total US Locations
69
Business Summary
The Grout Medic operates home-based, mobile businesses that provide a wide range of interior grout and tile cleaning, repair, restoration, recaulking, and protection services. These services are offered to both residential and commercial customers.
Corporate History
The Grout Medic, LLC, the current franchisor, was formed in Delaware in September 2021. It acquired substantially all the assets of its predecessor, TGM TEX, a Texas limited liability company, that same month. TGM TEX was originally organized in July 2012 and began offering franchises in December 2018 after acquiring assets from an Illinois limited liability company also named The Grout Medic, LLC. The current franchisor, The Grout Medic, LLC, began offering franchises in October 2021. The Grout Medic, LLC is owned by PSB Group, LLC, which is part of Premium Service Brands, LLC, a larger parent company that owns multiple home service franchise brands.
Financial Overview
Investment Range
$122,000 - $175,000
Franchise Fee (Low)
$58,500
Franchise Fee (High)
$65,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$5,000
Equipment Costs (High)
$10,000
Working Capital
$15,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The FDD highlights a significant risk factor stating that the franchisor's financial condition, as shown in its financial statements, calls into question its ability to provide services and support to franchisees. The consolidated financial statements for the franchisor's affiliate, Premium Service Brands, LLC, show a members' deficit (negative equity) of $5,873,114 in 2024 and $5,185,319 in 2023, indicating an accumulated deficit. Premium Service Brands, LLC also reported net losses of $687,795 in 2024 and $733,879 in 2023. These factors suggest potential financial challenges for the parent company supporting The Grout Medic, LLC.
Financing Details
The Grout Medic, LLC does not offer any direct or indirect financing to its franchisees. Additionally, it does not guarantee any notes, leases, or other financial obligations for franchisees.
Performance Metrics
Total US Locations
69
Franchised Units
69
Corporate Units
0
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
14
Litigation Summary
The Grout Medic, LLC and its affiliates have been involved in 14 legal actions. Two cases are currently pending: one involves 360 Painting, LLC (an affiliate) suing a former franchisee for breach of contract, trade secret misappropriation, and unauthorized use of marks, while the former franchisee counter-sued for fraud and misrepresentation. The other involves Rooterman, LLC (an affiliate) suing a former franchisee for trademark infringement, unfair competition, and breach of contract in both federal court and arbitration. Past litigation includes several breach of contract cases with former franchisees and advertising vendors, which were settled. There have also been governmental actions from various states (Maryland, Illinois, Virginia, California, Washington) regarding disclosure failures, unregistered franchise sales, and the failure to obtain required amendments, resulting in fines, offers of rescission, and a temporary bar for the CEO from offering or selling franchises in California.
Bankruptcy History
The Grout Medic, LLC has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, The Grout Medic, LLC franchisees must provide timely written notice (6 to 9 months before expiration), be in compliance with the Franchise Agreement and other related agreements, and not be in default. They must also sign the then-current Franchise Agreement, which may have materially different terms, pay a renewal fee (the greater of 25% of the then-current initial franchise fee or $15,000), maintain and update vehicles and the business premises to current standards, satisfy all monetary obligations, meet current qualifications and training requirements, and sign a general release of claims.
Training & Support Program
Franchisor Assistance
Before opening, The Grout Medic, LLC assists franchisees by designating their Protected Territory, providing initial training, lending a copy of the Brand Standards Manual (including employment resources), supplying a list of approved vendors, helping set up mandatory software systems and websites, and providing an email account. For non-home-based locations, The Grout Medic, LLC offers consultation and reviews proposed sites. Once open, ongoing support includes additional sales and operational assistance upon request, general guidance via phone, email, and newsletters on authorized services, operational methods, accounting, and marketing. The Grout Medic, LLC also conducts periodic visits for consultation, assistance, and guidance, provides updates to the System and Brand Standards Manual, approves local advertising materials, and maintains a centralized contact center for customer service and scheduling. The Grout Medic, LLC also suggests pricing policies.
Initial Training Hours
80
Training Location
Corporate offices in Charlottesville, Virginia
Ongoing Support
After opening, The Grout Medic, LLC provides ongoing support to its franchisees through various methods. This includes periodic advice and general guidance via telephone, email, and newsletters, covering topics like authorized services, operational methods, accounting procedures, and marketing strategies. The franchisor may also conduct periodic on-site visits for consultation, assistance, and guidance, and offers additional ongoing training as deemed necessary. Franchisees receive updates to the System, Brand Standards Manual, approved suppliers, and products. The Grout Medic, LLC approves advertising materials for local use and operates a centralized contact center for customer service and scheduling. Franchisees and their managers or employees may be periodically required to attend refresher training or regional meetings, with additional training courses available through an online learning management system. However, franchisees are responsible for all costs associated with attending these additional trainings.
Franchise Requirements
Ideal Candidate Profile
The Grout Medic, LLC is looking for qualified individuals and business entities capable of establishing and operating a home-based, mobile business that offers interior grout and tile cleaning, repair, restoration, recaulking, and protection services. The business requires a Designated Manager (who can be the owner if an individual franchisee) to provide direct, 'on-premises', full-time supervision after completing the initial training program. While not explicitly stated as a requirement for prior experience, the executive team's background in various home service brands suggests a preference for individuals with business acumen who are committed to operating and growing a service-based enterprise.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Full-Time
Territory Type
Protected
Staff Count
1
Territory Size Requirements
The Grout Medic, LLC defines its Protected Territories by zip codes. Each territory consists of a geographic area containing between 50,000 and 80,000 single-family dwellings.
Staffing Notes
The Grout Medic, LLC does not require franchisees to hire employees to operate an outlet initially, and generally advises against it until the business achieves sufficient customer volume to cover the overhead. However, the business must always be under the direct, on-premises, full-time supervision of a Designated Manager, who can be the franchisee themselves if an individual, or an individual selected by the franchisee if it is a business entity. This manager must successfully complete the initial training program.