Verified — real FDD extraction
SBA-eligible · directory code S1759 since 2017
GROUTSMITH
Other · independent · est. —
Groutsmith is a home-services franchise specializing in grout and tile cleaning, repair, restoration, and sealing. Franchisees run a low-overhead, mobile business performing on-site work in kitchens and bathrooms for homeowners and some commercial clients.
GROUTSMITH net unit count declined -6.0% from 2023–2025 per its FDD Item 20.
New to franchising? Start here
A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.
Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:
- Franchise fee — the one-time cost to buy in.
- Royalty — the ongoing cut of your sales you pay the franchisor.
- Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).
The verdict
Showing strain
Distress
The disclosed record shows weakness — shrinking units, elevated exits, or churn — worth reading closely before going further.
Exit rate · latest year
6.3%
fiscal 2025, per Item 20
Cost to open
$43K–$49K
Item 7 total investment range
SBA loan defaults
Too few resolved
1 loans exist; too few resolved to rate
Behind the verdict
the record, factor by factor · Item 20
3-yr trend · Item 20 Table 1
terminations + ceased-ops vs. all exits · Table 3
transfers vs. base · Table 3
actual vs. projected openings · Table 5
Item 19 disclosure + completeness
Systemwide units
2023–2025
Survival record
FDD Item 20 · outlet status by year
In fiscal 2025, 3 of 48 franchised outlets left the system — a 6.3% annualized exit rate. Not every exit is a failure — but this is the measurable floor.
Show the outlet tables ↓Hide the evidence ↑
| Status (FTC) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Outlets at start | 50 | 50 | 49 |
| Opened | 1 | 5 | 1 |
| Transfers | 2 | 3 | 4 |
| Terminations | 1 | 6 | 3 |
| Non-renewals | 1 | 0 | 0 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 0 | 0 | 0 |
| Outlets at end | 50 | 49 | 47 |
| Net change | 0 | -1 | -2 |
The lender's view
SBA 7(a)/504 loan performance · FY1991–present
Banks have made 1 SBA-backed loans to GROUTSMITH franchisees since 2025. Most are still open, so there is not yet a resolved cohort large enough to rate.
—
0 resolved · too thin to rate
—
avg. charged-off $ ÷ approved $
—
default rate × loss severity
$163,200
what recent franchisees borrowed
—
approval → charge-off, defaulted loans
—
distinct banks lending
Charge-off rate by loan approval year (%)
SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO GROUTSMITH BY FRANCHISE NAME · RESOLVED = CHARGED-OFF + PAID-IN-FULL
What it costs — and what it drags
FDD Items 5–7 · fees, investment, royalty
Buying in means a $35K franchise fee (Item 5) and a total investment of $43K–$49K (Item 7). The franchisor publishes no earnings claim (Item 19) — ask current and former franchisees for real numbers.
To open (Item 7)
$43K–$49K
all-in investment range
Franchise fee (Item 5)
$35K
upfront, one-time
Royalty (Item 6)
—
of sales, ongoing
Your figure — this brand discloses no Item 19 earnings; validate with current & former owners.
Royalty you'd pay / yr
$0
0% of sales, before profit
Over a 10-yr term
$0
royalties alone, excl. ad fund
This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.
Build a real pro-forma for GROUTSMITH with an independent CPADistress signals
news-sourced · bankruptcies, closures, lawsuits
No recent closures, bankruptcies, or major lawsuits found in the news for GROUTSMITH. That's a good sign — but it reflects news coverage, not a guarantee.
A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing GROUTSMITH's numbers, including talking you out of a bad deal.
Talk to an independent CPA before you buy →GROUTSMITH franchise questions, answered from the filings
What percentage of GROUTSMITH franchises closed last year?
In GROUTSMITH's latest FDD Item 20 (fiscal 2025), 3 of 48 franchised outlets left the system — an annualized exit rate of 6.3%. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.
How much does a GROUTSMITH franchise cost?
Per GROUTSMITH's 2026 FDD, buying in requires an initial franchise fee of $35K (Item 5) and a total initial investment of $43K–$49K (Item 7).
Does GROUTSMITH disclose earnings (Item 19)?
No — GROUTSMITH's 2026 FDD makes no financial performance representation in Item 19. That is legal and common, but it means the franchisor publishes no earnings claim; ask current franchisees for real numbers.