Groutsmith Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Groutsmith is a tile and grout restoration franchise that cleans, seals, repairs, and recolors grout and tile surfaces. Franchisees run local operations, serving homes and businesses and managing scheduling and service delivery.
FranchiseVerdict summary · 2026
A Groutsmith franchise requires a total initial investment of $43K – $49K. The 2024 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $43K – $49K
- 4th pct Home Services
- Avg gross sales
- N/A
- Royalty
- N/A
- Units
- 47
- 45th pct Home Services
- SBA charge-off
- N/A
Quick verdict · Home Services · color = vs category peers
Green = favorable by >10% vs Home Services avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $43K – $49K.
- RETURNSItem 19 discloses no financial performance representation; franchisor states it does not make any representations about franchisee future or past financial performance.
- RISKVerdict B (Above average), verdict score 54/100 (higher is better).
- DECLINESystem contracting at -6.1% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Groutsmith™ Franchising, Inc.
- Predecessor
- J. Arthur Smith, Inc., DBA Groutsmith
- Prior franchisor entity
- CEO title
- President, Shareholder, and Director
- Jonathan Smith
- Incorporated in
- Nevada
- HQ
- 6341 Porter Road, Suite 11, Sarasota, Florida 34240
Overview
About
- CEO
- Jonathan Smith
- Headquarters
- Florida
- Founded
- 2010
- FDD year
- 2024
Can you afford it, and what does the money buy?
Entry cost runs 80% below the typical home services franchise.
Source: FDD 2024 · Items 5–7
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Working capital (3–6 mo) | $800 | $3K |
| Equipment, build-out, other | $42K | $46K |
| Total initial investment | $43K | $49K |
Source: Groutsmith 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $43K – $49K
- Top 40% of category vs category
- Liquid capital req'd
- $800 – $3K
- Top 40% of category vs category
- Franchise fee
- N/A
- Paid to franchisor at signing
- Royalty
- $0/month for months 1-6; $600/month for months 7-12; $800…
- Ad fund
- No required advertising fund/fee; franchisee must spend m…
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | Fixed monthly royalty schedule not exceeding $1,250/month regardless of gross sales |
| Technology fee | $52 |
| Training fee | $1K |
| Transfer fee | $5K |
| Renewal fee | $500 |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Groutsmith did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Groutsmith unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
157%
Above the 30–60% band. Verify revenue is per-unit average
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2024 FDD
Financial Performance
Item 19 discloses no financial performance representation; franchisor states it does not make any representations about franchisee future or past financial performance.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System contracting at -6.1% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Home Services averages
How Groutsmith Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 47
- Opened
- 0
- Last reporting year
- Closed
- 2
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 13.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 1%
- vs corporate-owned
- Net growth (3-yr)
- -6.1%
- Net unit change over 3 years
- 3-yr CAGR
- -6.1%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 3
- Terminated (3yr)
- 3
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 4
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $163K
- Median loan
- $163K
- average
- Charge-off rate
- N/A
- limited sample (1 loan) — rate not shown below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Groutsmith presents extreme risk due to going concern status, complete absence of financial transparency, undefined business terms, and lack of franchise system maturity or disclosure.
Litigation (Item 3)
No litigation required to be reported.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 54 / 100 verdict
- 01HIGHGoing Concern status indicates franchisor financial distress or viability questions
- 02MEDZero disclosed financial metrics (revenue, net income, unit count, growth) suggests either non-disclosure or lack of established track record
- 03MEDUnknown royalty structure and franchise fee ($0 listed) is highly unusual and suggests incomplete or problematic disclosure
- 04MINORUnknown territory protection creates direct competition risk and potential channel conflict with other franchisees
- 05MINORUnknown franchise term length indicates unstable or undefined business relationship
- 06MEDAbsence of any unit growth data suggests stagnation, decline, or brand in early/failed stage
- 07MEDNo litigation disclosed may indicate young system with insufficient scale to have legal disputes, rather than clean history
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 15 years |
|---|---|
| Territory type | exclusive |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory population | 125,000 |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 50 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 60 days |
| Transfer requires consent | Yes |
| Termination notice | 15 days |
| Termination groundsℹ | 7 |
| Mandatory arbitration | No |
| Arbitration location | Sarasota County, Florida |
| Governing law | Florida |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be reported.
Items 10, 11
Training & Operations
- Classroom training
- 24 hrs
- On-the-job training
- 56 hrs
- Training location
- Groutsmith Headquarters, Sarasota, FL, or customer location
- Ongoing training
- Required
- Field support
- 56 hrs/yr
- On-site visits per year
- Time to open
- 1 mo
- From signing to launch
- Franchisor financing
- Not offered
- Item 10
- POS system
- Jobber (Cloud Based Business Management and Scheduling Software)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Jobber (Cloud Based Business Management and Scheduling Software)
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Groutsmith franchise?
The total investment to open a Groutsmith franchise ranges from $43K – $49K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Groutsmith franchise owners earn?
Groutsmith does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the Groutsmith FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Groutsmith FDD and qualifies whose outlets they describe.
What is Groutsmith's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Groutsmith (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Groutsmith franchise locations are there?
As of their most recent FDD filing, Groutsmith has 47 total units in the United States, including 46 franchised units and 1 company-owned units.
Is Groutsmith a good franchise to buy?
FranchiseVerdict rates Groutsmith as a B-grade franchise with a verdict score of 54 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent Groutsmith, you can request corrections or provide updated information.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.