FranchiseVerdict
FV-01130·AVOIDMinimal10

Groutsmith

Other
Investment
99th pct Other
Avg revenue
50th pct Other
Royalty
Units
99th pct Other
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment —.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated AVOID with a risk score of 85/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).

Item 1 · who you're contracting with

The Franchisor

Legal entity
Groutsmith Franchising, Inc.

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one Groutsmith unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
Working capital
$
Item 7 didn't break this out — defaulted to ~10% of annual revenue

Unlevered ROIC · per unit

32%

In Yale's "attractive" band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$105K
EBITDA margin
14.0%
Total invested
$325K
Payback
37 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Groutsmith franchisees operate tile and grout cleaning and restoration services, providing residential and commercial customers with cleaning, sealing, repair, and color restoration solutions. Day-to-day activities involve on-site service delivery, equipment operation, customer communication, and managing local service schedules. The business model relies on local market penetration and direct customer acquisition.

FDD year
2024

Item 7 · what it costs

The Vitals

Total investment
All-in to open one unit
Liquid capital
Cash you must have on hand
Franchise fee
Royalty
n/d
Ad fund
n/d

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
Opened
Last reporting year
Closed

No multi-year history disclosed and no opening/closing activity in the last reporting year.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

Total loans
2
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

85
Risk · 0-100
AVOID85 / 100

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.

Score breakdown · what drove the 85 / 100 rating

  1. 01HIGHGoing Concern status indicates franchisor financial distress or viability questions
  2. 02MEDZero disclosed financial metrics (revenue, net income, unit count, growth) suggests either non-disclosure or lack of established track record
  3. 03MEDUnknown royalty structure and franchise fee ($0 listed) is highly unusual and suggests incomplete or problematic disclosure
  4. 04MINORUnknown territory protection creates direct competition risk and potential channel conflict with other franchisees
  5. 05MINORUnknown franchise term length indicates unstable or undefined business relationship
  6. 06MEDAbsence of any unit growth data suggests stagnation, decline, or brand in early/failed stage
  7. 07HIGHNo 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

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

No franchisee contacts available for Groutsmith. This brand's FDD Item 20 did not include a contactable franchisee list.

FDD download

Groutsmith · FDD (2024) PDF

Single-page checkout · instant download · CSV export of contacts available separately above