The Grout Medic
Bottom line
- Total investment $102K – $175K including a $65K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $321K/year (median $226K).
- Rated MODERATE with a risk score of 59/100. SBA loan default rate of 0.0% across 28 loans (below the industry average).
- 17 litigation matters disclosed in Item 3 — higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
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 The Grout Medic unit return on the cash you put in?
Unlevered ROIC · per unit
23%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 The Grout Medic units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$257K
on $1.3M purchase
Total debt
$1.0M
SBA $0.6M + senior + seller note
Overview
About
The Grout Medic franchisees operate a tile and grout restoration service business, performing cleaning, sealing, repair, and restoration of tile, grout, and natural stone surfaces in residential and commercial properties. Franchisees manage customer acquisition, scheduling, service delivery, and local marketing while utilizing the franchisor's training, operational systems, and brand name. Day-to-day operations involve client consultations, on-site service work, and managing technician teams or performing services directly.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 21 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 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
High-risk franchisor with extensive litigation history, regulatory violations across multiple states, undisclosed profitability metrics, and a small fragile system — serious concerns about transparency, legal compliance, and franchisee protection.
Score breakdown · what drove the 59 / 100 rating
- 01HIGH17 pending or prior legal actions including franchisee fraud/breach of contract allegations and multiple state regulatory violations (Maryland, Illinois, California, Washington) for registration and disclosure violations
- 02MEDNo average net income disclosed in Item 19 despite $321,441 average revenue — inability or unwillingness to provide profitability data is a major transparency red flag
- 03MEDModest unit growth of 13.1% YoY with only 69 franchises suggests a small, fragile system vulnerable to churn; any departures could accelerate decline
- 04HIGHHigh litigation involving affiliated brands (360 Painting, Window Gang, Rooterman) under same parent entity indicates systemic legal and compliance issues across portfolio
- 05MINORPrior governmental enforcement actions for registration/disclosure violations suggest history of inadequate franchise disclosure practices
- 06MEDHigh franchise fee ($65,000) and 6% royalty combined with undisclosed profitability creates significant financial risk for franchisees with unclear ROI
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
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
53 numbers
One-time purchase · CSV download · Validation questions included
FDD download
The Grout Medic · FDD (2025) PDF