FranchiseVerdict
Sir Grout logo
FV-02327·STRONGExcellent95

Sir Grout

Formerly known as Grout Restoration Services

Cleaning - Commercial & JanitorialFranchising since 2007Website
Investment
$128K – $199K
64th pct Commercial & …
Avg revenue
$623K
31st pct Commercial & …
Royalty
Units
91
70th pct Commercial & …
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $128K – $199K including a $60K franchise fee.
  • Average unit revenue of $623K/year (median $496K).
  • Rated STRONG with a risk score of 47/100. SBA loan default rate of 0.0% across 8 loans (below the industry average).
  • System growing at 46.8% CAGR over 3 years with 91 total units — strong expansion trajectory.

Item 1 · who you're contracting with

The Franchisor

Legal entity
Sir Grout Franchising, LLC
Parent company
Threshold Brands, LLC
Incorporated in
Delaware
HQ
17700 Saint Clair Avenue, Cleveland, Ohio 44110
Auditor
Plante & Moran, PLLC
Audited financials
Franchisor revenue
$49.0M
vs $47.9M prior year

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 Sir Grout unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $622,650
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: restoration
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $128K–$199K
Working capital
$
FDD reports $14K–$20K

Unlevered ROIC · per unit

35%

In Yale's "attractive" band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$62K
EBITDA margin
10.0%
Total invested
$180K
Payback
35 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.

Levered LBO scenario · Yale Crease Capital framing

What would 25 Sir Grout units return on equity?

Edit assumptions

Equity IRR · 5-yr

49.9%

7.57× MOIC

Year-1 DSCR

1.88×

EBITDA ÷ debt service

Equity required

$374K

on $1.9M purchase

Total debt

$1.5M

SBA $0.9M + senior + seller note

Overview

About

Sir Grout franchisees operate tile, grout, and stone restoration services for residential and commercial properties. Day-to-day work involves cleaning, sealing, and repair of grout lines, marble, granite, and other natural stone surfaces. Franchisees typically manage 1-3 technicians, handle customer acquisition, scheduling, and quality oversight.

CEO
Theodore Demarino
Founded
2007
FDD year
2026
States available
26

Item 7 · what it costs

The Vitals

Total investment
$128K – $199K
All-in to open one unit
Liquid capital
$14K – $20K
Cash you must have on hand
Franchise fee
$60K
Royalty
$600 for the first three months; then 6% of Gross Revenue…
Ad fund
$500
Total fee load
6.0%
vs 9–13% typical

Item 19

Financial Performance

Avg gross sales
$623K
Per unit, per year
Median gross sales
$496K
Item 19 type
Gross Revenues
Sample size
44 units
vs category median 32
Range (low → high)
$120K$2.2M
Cohort dispersion
Transparency
4 / 5
vs category median 4 / 5 · typical
Revenue rank31th
vs Cleaning - Commercial & Janitorial peers
Investment cost rank64th
Lower investment ranks lower (better)
Royalty rate rank66th
Lower royalty = lower percentile (better)
Unit count rank70th
vs Cleaning - Commercial & Janitorial peers
Risk score rank28th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
91
Opened
23
Last reporting year
Closed
3
Turnover rate
3.3%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Net growth (yr3)
+28.2%
Net unit change last year
3-yr CAGR
+46.8%
Compounded over last 3 years
2024
91+20
Franchised units
2025
71
Franchised units
2026
62
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 22 states with active franchisees

The Territory Map

Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 22 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

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

Total loans
8
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

47
Risk · 0-100
STRONG47 / 100

Strong territorial growth and revenue metrics are offset by undisclosed profitability data, aggressive royalty minimums, and recent regulatory compliance issues at parent company level.

Score breakdown · what drove the 47 / 100 rating

  1. 01MEDNo Item 19 (Average Unit Volume) disclosed — cannot validate $622,650 avg revenue claim or calculate true ROI
  2. 02MEDNet income not disclosed — high royalty floor ($1,250/month minimum) may be unsustainable for lower-revenue units
  3. 03HIGHParent company litigation in August 2025 (MaidPro Consent Order) suggests compliance gaps in franchise sales practices across corporate structure
  4. 04MINORRoyalty structure heavily weighted to franchisor — 6% OR $1,250/month minimum creates cash flow pressure on franchisees below ~$21K/month revenue
  5. 05MINOR28.2% YoY unit growth is strong but insufficient context — unclear if driven by new sales, acquisition, or franchise stabilization post-COVID

Severity inferred from the FDD text · not a regulatory classification

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

Contract & Territory Detail

Territory
Household count
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
1
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
1.5 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Ohio

Item 11

Training & Operations

Classroom training
35 hrs
On-the-job training
0 hrs

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.

Franchisee contacts

61 numbers

Locked
(714) 627-••••
CA
(678) 248-••••
GA
(860) 781-••••
CT

One-time purchase · CSV download · Validation questions included

FDD download

Sir Grout · FDD (2026) PDF

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