Sir Grout Franchise Cost, Revenue & Review 2026
- Investment
- $128K – $199K
- Disclosed sales
- $623K
- gross sales, not profit
- SBA charge-off
- Under 10 loans (4)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Sir Grout is a home-services franchise providing tile, grout, and stone cleaning, sealing, and restoration. Franchisees run a mobile, crew-based operation handling residential and commercial restoration jobs in a territory.
FranchiseVerdict summary · 2026
A Sir Grout franchise requires a total initial investment of $128K – $199K, including a $60K franchise fee and an ongoing 6.0% royalty[2]. Per the 2026 FDD, average revenue per franchisee was $623K. This franchisor reports Item 19 per franchisee rather than per outlet, so the figure is not comparable with per-outlet averages[2]. FranchiseVerdict grade: A (Strongest tier), 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: strong✓ 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 scored7 of 7 headline figures on this page cite a page of the filing.
Overview
- Investment
- $128K – $199K
- 50th pct Cleaning & Ma…
- Avg gross sales
- $623K
- Per franchisee, not per outlet
- Royalty
- 6.0%
- 14th pct Cleaning & Ma…
- Units
- 91
- 62nd pct Cleaning & Ma…
- SBA charge-off
- N/A
Quick verdict · Cleaning & Maintenance · color = vs category peers
Green = favorable by >10% vs Cleaning & Maintenance 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 $128K – $199K including a $60K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage revenue per franchisee of $623K/year (median $496K). Averaged per franchisee, not per outlet - not comparable with per-outlet figures.
- RISKVerdict A (Strongest tier), verdict score 85/100 (higher is better).
- GROWTHPositive: net +20 franchised outlets in the latest year (23 opened, 3 closed); 5 signed but not yet open (Item 20).
- GROWTHSystem growing at 46.8% CAGR over 3 years with 91 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Sir Grout Franchising, LLC
- Parent company
- Threshold Brands, LLC
- FDD Item 1, page 9 of the 2026 FDD
- Ultimate parent
- HS Group Holding Company, LLC (majority owned by Riverside MicroCap Fund V-A, L.P. and RMCF V AIV I, L.P., managed by The Riverside Company)
- FDD Item 1, page 9 of the 2026 FDD
- CEO title
- Chief Executive Officer
- Theodore Demarino
- Incorporated in
- Delaware
- HQ
- 17700 Saint Clair Avenue, Cleveland, Ohio 44110
- Auditor
- Plante & Moran, PLLC
- Audited financials
- Franchisor revenue
- $47.9M
- vs $49.0M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Same owner · FDD Item 1, page 9
10 other brands on this site name HS Group Holding Company, LLC (majority owned by Riverside MicroCap Fund V-A, L.P. and RMCF V AIV I, L.P., managed by The Riverside Company) as parent or ultimate parent in their own FDD.
- Granite Garage FloorsA
- Heating + Air ParamedicsB
- MaidProB
- Men In KiltsB
- Miracle MethodA
- Mold MedicsB
- Patio PatrolB
- PestmasterA
- Plumbing ParamedicsB
- USA InsulationA
Portfolio: The Riverside Company (private-equity sponsor)
Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Theodore Demarino
- Headquarters
- OH
- Founded
- 2007
- FDD year
- 2026
- States available
- 26
Can you afford it, and what does the money buy?
Entry cost is about typical for a cleaning & maintenance franchise (near the category median).
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown13 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $60K | $60K | |
| The Right Start Package Fee | $12K | $15K | |
| Computer System and Website | $3K | $5K | |
| Training Costs | $10K | $12K | |
| Insurance | $1K | $3K | |
| Local Advertising | $11K | $12K | |
| Miscellaneous Opening Costs | $5K | $10K | |
| Opening Promotional Expenses | $250 | $750 | |
| Vehicle and Vehicle Wrap | $10K | $56K | |
| Permits and Licenses | $200 | $2K | |
| Credit card (Visa & Mastercard) Terminal | $50 | $500 | |
| Business Center Fee | $5K | $5K | |
| Additional Funds - 3 months | $14K | $20K | |
| Total initial investment | $128K | $199K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $128K – $199K
- Middle of category vs category
- Liquid capital req'd
- $14K – $20K
- Top 40% of category vs category
- Franchise fee
- $60K – $60K
- Bottom third — review vs category
- Royalty
- 6.0%
- Set by a formula · typical 6–8%
- Ad fund
- $500
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Technology fee | $2K |
| Training fee | $2K |
| Transfer fee | $5K |
| Renewal fee | $3K |
| Total fee load | 6.0% of rev |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
What do units actually make?
Average unit sales run 16% above the cleaning & maintenance norm.
Averaged per franchisee, not per outlet - not comparable with per-outlet figures
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Sir Grout until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for 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.
Total invested capital · disclosed
$180K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Sir Grout 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 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.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for 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.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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
Averaged per franchisee, not per outlet - not comparable with per-outlet figures
- Avg gross sales
- $623K
- Per franchisee, per year — not per outlet
- Median gross sales
- $496K
- Per franchisee, not per outlet
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- Historical Gross Revenues by quartile and by year-opened cohort
- Sample size
- 44 franchisees
- vs category median 32
- Range (low → high)
- $120K→$2.2MCited, not corroborated — printed on page 59 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Quartile band
- $236K→$1.2M
- Bottom 25% → top 25%, per franchisee
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 191 Cleaning & Maintenance brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
The average franchisee generates $623K/year in gross sales. Median is $496K — top performers pull the average up, so a typical unit earns less.
Fee burden
Total ongoing fee load of 6.0% — below the Cleaning & Maintenance median of 8.3%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 46.8% CAGR over 3 years across 91 units — operators are staying and new ones are joining.
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 Cleaning & Maintenance medians
How Sir Grout Compares
Per franchisee, not per outlet - the category median is per-outlet only, so no comparison is shown
Category median of published Cleaning & Maintenance 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
- 91
- Opened
- 23
- 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
- 3.3%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +46.8%
- Net unit change over 3 years
- 3-yr CAGR
- +46.8%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 3
- Not renewed
- 0
- Signed, not yet open
- 5
- 0.05 per open outlet · Item 20 Table 5
- Projected new
- 12
- Franchisor's next-year forecast
- Transfer rate
- 2.2%
- Owners selling to other franchisees
- Termination rate
- 2.2%
- Franchisor-initiated terminations
- Ceased ops
- 2.2%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 26 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
26
states with franchisees (per FDD Item 12)
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 4 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 4
- Loan volume
- $600K
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- Under 10 loans (4)
- Insufficient SBA coverage: 4 loans, 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 (4)
- 5-yr charge-off
- Under 10 loans (4)
- 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: the franchisor is a named party (defendant).
In the Matter of MaidPro Franchise, LLC (Securities Commissioner of Maryland, Case No. 2025-0075). On August 13, 2025, MaidPro entered into a Consent Order with the Securities Commission of Maryland regarding inadvertent violations of franchise fee deferral requirements in two franchise sales in 2022. MaidPro agreed to comply with deferral conditions, cease and desist from violations of Maryland Franchise Law, and paid a $15,000 penalty to the Maryland Office of the Attorney General.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Plante & Moran, PLLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Financial statements are the audited consolidated financials of parent guarantor HS Group Holding Company, LLC (FY2025 and FY2024), not Sir Grout Franchising, LLC standalone. Sir Grout Franchising itself reported $3,089,803 total revenue for FY2025 per Item 8 disclosure (of which $105,549 was from required-purchase sales to franchisees). Item 8 states the franchisor's own total revenue as $3,089,803 (FY ending 2025-12-31); the statements above are the parent's.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
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 85 / 100 verdict
- 01MINORParent-level financials, net loss -$13.59M (not brand-level)
- 02MINOR1 minor affiliate consent order ($15K penalty)
- 03MEDStrong growth +46.8%, Item 19 disclosed
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 100,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1.5 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 60 days |
| Transfer requires consent | Yes |
| Termination notice | 10 days |
| Termination groundsℹ | 9 |
| Curable defaultsℹ | 9 |
| Mandatory arbitration | Yes |
| Arbitration location | Cleveland, Ohio |
| Jury trial waiver | Yes |
| Governing law | Ohio |
| Litigation count | 1 |
View Item 3 litigation summary
In the Matter of MaidPro Franchise, LLC (Securities Commissioner of Maryland, Case No. 2025-0075). On August 13, 2025, MaidPro entered into a Consent Order with the Securities Commission of Maryland regarding inadvertent violations of franchise fee deferral requirements in two franchise sales in 2022. MaidPro agreed to comply with deferral conditions, cease and desist from violations of Maryland Franchise Law, and paid a $15,000 penalty to the Maryland Office of the Attorney General.
Items 10, 11
Training & Operations
- Classroom training
- 35 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site
- Ongoing training
- Required
- Franchisor financing
- Offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
59 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Sir Grout franchise?
The total investment to open a Sir Grout franchise ranges from $128K – $199K, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Sir Grout franchise owners earn?
According to Item 19 of the Sir Grout FDD, the average gross sales per unit is $623K. The median is $496K. Important context: Averaged per franchisee, not per outlet - not comparable with per-outlet figures. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Sir Grout?
Sir Grout is franchised by Sir Grout Franchising, LLC. Its parent company is Threshold Brands, LLC. The ultimate parent named in the FDD is HS Group Holding Company, LLC (majority owned by Riverside MicroCap Fund V-A, L.P. and RMCF V AIV I, L.P., managed by The Riverside Company). Source: FDD Item 1, 2026 filing.
What is Item 19 in the Sir Grout 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 Sir Grout FDD and qualifies whose outlets they describe.
What is Sir Grout's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Sir Grout (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 Sir Grout franchise locations are there?
As of their most recent FDD filing, Sir Grout has 91 total units in the United States, including 91 franchised units and 0 company-owned units. 23 new units were opened in the latest reporting year.
Is Sir Grout a good franchise to buy?
FranchiseVerdict rates Sir Grout as a A-grade franchise with a verdict score of 85 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
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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.