The Grout Doctor® Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
The Grout Doctor is a home-services franchise providing tile, grout, and stone cleaning, sealing, repair, and re-coloring. Franchisees run a mobile, often owner-operated service handling residential and commercial jobs in a territory.
FranchiseVerdict summary · 2026
A THE GROUT DOCTOR® franchise requires a total initial investment of $24K – $38K, including a $15K – $20K franchise fee. Per the 2026 FDD, average unit revenue was $149K[2]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $24K – $38K
- 1st pct Home Services
- Avg gross sales
- $149K
- Outlet subset2nd pct Home Services
- Royalty
- N/A
- Units
- 80
- 54th 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 $24K – $38K including a $15K franchise fee.
- RETURNSAverage unit revenue of $149K/year (median $123K) (reported for a subset of outlets rather than the whole system).
- RISKVerdict A (Strongest tier), verdict score 69/100 (higher is better).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Grout Doctor Global Franchise Corp.
- CEO title
- President
- Daniel J. Start
- Incorporated in
- NV
- HQ
- 2150 South 1300 East, Suite 500, Salt Lake City, Utah 84106
- Auditor
- Terra Business Solutions
- Audited financials
- Franchisor revenue
- $1.2M
- vs $1.1M prior year
Overview
About
- CEO
- Daniel J. Start
- Headquarters
- UT
- Founded
- 2001
- FDD year
- 2026
- States available
- 26
Can you afford it, and what does the money buy?
Entry cost runs 86% below the typical home services franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $15K | $15K |
| Working capital (3–6 mo) | $1K | $2K |
| Equipment, build-out, other | $8K | $21K |
| Total initial investment | $24K | $38K |
Source: THE GROUT DOCTOR® 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
- $24K – $38K
- Top 40% of category vs category
- Liquid capital req'd
- $1K – $2K
- Top 40% of category vs category
- Franchise fee
- $15K – $20K
- Top 40% of category vs category
- Royalty
- Greater of tiered schedule (9% of monthly gross sales up …
- Ad fund
- 1.5%
- typical 3–5%
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 1.5% of gross sales |
| Technology fee | $0 |
| Transfer fee | $4K |
| Renewal fee | $500 |
| Total fee load | 10.0% of rev |
What do units actually make?
Average unit sales run 88% below the home services norm.
Reported for a subset of outlets rather than the whole system
Source: FDD 2026 · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$17K
11.5% margin
Unlevered ROIC
53%
EBITDA / total invested capital
Payback
23 mo
cash-on-cash, unlevered
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. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one THE GROUT DOCTOR® unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
53%
Within the 30–60% "attractive franchise" band
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%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 THE GROUT DOCTOR® units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$134K
on $672K purchase
Total debt
$538K
SBA $0.3M + senior + seller note
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
Reported for a subset of outlets rather than the whole system
- Avg gross sales
- $149K
- Per unit, per year
- Median gross sales
- $123K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 70
- vs category median 32 · large
- 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 321 Home Services brands
Revenue is 4.8x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $149K/year in gross sales. Median is $123K — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 4.8x. Reported for a subset of outlets rather than the whole system.
Fee burden
Total ongoing fee load of 10.0% (near the Home Services average).
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 contracting at -4.9% 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 The Grout Doctor® Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 80
- Opened
- 3
- Last reporting year
- Closed
- 3
- Turnover rate
- 5.1%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
- Net growth (3-yr)
- -4.9%
- Net unit change over 3 years
- 3-yr CAGR
- -4.9%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 2
- Terminated (3yr)
- 2
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 1
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 3 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).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
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
Moderate-to-high risk: system contraction, non-transparent profitability, aggressive royalty structure on low revenue, and ambiguous going concern status warrant careful validation before investment.
Litigation (Item 3)
No litigation required to be disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Terra Business Solutions
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 69 / 100 verdict
- 01MINORDeclining unit count (-1.2% YoY) suggests system contraction and potential franchisee satisfaction issues
- 02HIGHGoing Concern status is 'False' — ambiguous wording; requires clarification if franchisor faces financial instability
- 03MEDNo litigation disclosed but declining units + profit opacity raises red flags about franchisee disputes being underreported
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 10.0% 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 | 7 years |
|---|---|
| Renewal term | 7 years |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Online sales rights | Restricted |
| 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 | 5 days |
| Mandatory arbitration | Yes |
| Arbitration location | Salt Lake County, Utah |
| Jury trial waiver | Yes |
| Governing law | UT |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 15 hrs
- On-the-job training
- 45 hrs
- Training location
- Regional (Utah, North Carolina or Colorado) plus online classroom and on-the-job at customer/vendor locations
- Ongoing training
- Required
- POS system
- Grout Doctor® Franchise Management Software (Sandstone)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Grout Doctor® Franchise Management Software (Sandstone)
Item 20 · call current owners
Franchisee Contacts
98 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
THE GROUT DOCTOR® · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a THE GROUT DOCTOR® franchise?
The total investment to open a THE GROUT DOCTOR® franchise ranges from $24K – $38K, with an initial franchise fee of $15K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do THE GROUT DOCTOR® franchise owners earn?
According to Item 19 of the THE GROUT DOCTOR® FDD, the average gross sales per unit is $149K. The median is $123K. Important context: Reported for a subset of outlets rather than the whole system. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the THE GROUT DOCTOR® 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 THE GROUT DOCTOR® FDD and qualifies whose outlets they describe.
What is THE GROUT DOCTOR®'s franchise failure rate?
SBA 7(a) loan charge-off data is not available for THE GROUT DOCTOR® (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 THE GROUT DOCTOR® franchise locations are there?
As of their most recent FDD filing, THE GROUT DOCTOR® has 80 total units in the United States, including 78 franchised units and 2 company-owned units. 3 new units were opened in the latest reporting year.
Is THE GROUT DOCTOR® a good franchise to buy?
FranchiseVerdict rates THE GROUT DOCTOR® as a A-grade franchise with a verdict score of 69 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?
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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.