Groutsmith Franchise Cost, Revenue & Review 2026
- Investment
- $43K – $49K
- Disclosed sales
- not disclosed
- SBA charge-off
- Under 10 loans (1)
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. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: partial✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored0 of 2 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $43K – $49K
- 4th pct Home Services
- Avg gross sales
- N/A
- Royalty
- Tiered by sales volume
- Units
- 47
- 44th pct Home Services
- SBA charge-off
- N/A
Quick verdict · Home Services · color = vs category peers
Green = favorable by >10% vs Home Services median · 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.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 58/100 (higher is better).
- GROWTHNegative: net -2 franchised outlets in the latest year (1 opened, 3 closed) (Item 20).
- FLAG3 units terminated last reporting year (6.4% of the system). Ask existing franchisees why.
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
- 2026
Can you afford it, and what does the money buy?
Entry cost runs 73% below the typical home services franchise.
Source: FDD 2026 · Items 5–7
The filing does not state an initial franchise fee.
FDD Item 7 · 2026 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 2026 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
- Fee not disclosed
- 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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Groutsmith unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, royalty rate, ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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: 2026 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 medians
How Groutsmith Compares
Category median of published Home Services brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 47
- Opened
- 1
- Last reporting year
- Closed
- 3
- Terminated
- 3
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 6.4%
- 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
Last fiscal year · Item 20 exits and transfers
- Terminated
- 3
- Not renewed
- 0
- Transferred
- 4
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 5
- Franchisor's next-year forecast
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
- Under 10 loans (1)
- Insufficient SBA coverage: 1 loan, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (1)
- 5-yr charge-off
- Under 10 loans (1)
- 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
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
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 58 / 100 verdict
- 01MEDZero disclosed financial metrics (revenue, net income, unit count, growth) suggests either non-disclosure or lack of established track record
- 02MEDUnknown royalty structure and franchise fee ($0 listed) is highly unusual and suggests incomplete or problematic disclosure
- 03MINORUnknown territory protection creates direct competition risk and potential channel conflict with other franchisees
- 04MINORUnknown franchise term length indicates unstable or undefined business relationship
- 05MEDAbsence of any unit growth data suggests stagnation, decline, or brand in early/failed stage
- 06MEDNo 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 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 15 years |
|---|---|
| Territory type | Exclusive territory |
| 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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Groutsmith?
Groutsmith is franchised by Groutsmith™ Franchising, Inc.. Source: FDD Item 1, 2026 filing.
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. 1 new units were opened in the latest reporting year.
Is Groutsmith a good franchise to buy?
FranchiseVerdict rates Groutsmith as a B-grade franchise with a verdict score of 58 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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?
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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.