The Grout Doctor

Your Item 19 shows median gross sales of $122,820, well below the typical $286,628–$1,008,179 range for home services franchises. What factors contribute to these lower sales figures, and how do territories and unit economics differ from comparably performing franchises?

The system has declined from 86 units 3 years ago to 83 currently. Can you break down the reasons for the 4 unit closures and 3 terminations in 2022, and what systemic changes have been made since then to stabilize or grow the system?

Your franchise fee of $17,500 is significantly lower than the typical $45,000–$59,900 range. Does this lower fee reflect lower support costs, a newer or smaller system, or a different business model, and what is included in the initial investment?

The transfer fee of $3,500 is below typical rates. Is there a reason for this lower threshold, and does it affect franchisor approval rigor or franchisee motivation to transfer versus close?

Your initial term is 7 years, shorter than the typical 10-year standard. Why was this term length selected, and what happens to franchisees who wish to renew—what are the specific renewal conditions?

The non-compete radius of 50 miles exceeds the typical 25–40-mile range. How is this enforced post-termination, and what activities are specifically restricted for former franchisees?

You require 4 curable defaults and 12 non-curable defaults as termination triggers. Can you provide specific examples of non-curable defaults, and how often has the franchisor exercised termination for non-monetary breaches?

Your agreement requires personal guarantees from all owners with 5%+ interest and spouses. What is the reasoning for spousal liability, and have there been cases where spouses were held personally liable?

The minimum performance requirement is $0.00383 per household in the territory. How is this calculated, what happens if a franchisee falls below this threshold, and are there examples of enforcement?

All disputes require binding arbitration in Salt Lake City, Utah, with class action waivers. Are there cost examples or typical arbitration outcomes, and why was Utah selected as the arbitration venue?

Franchisees must purchase from approved suppliers only for 5 categories including software and cleaning products. Who are the approved suppliers, do you own or have financial interest in any suppliers, and can franchisees request alternative suppliers?

What training and ongoing support are included with the $17,500 franchise fee, and are there additional costs for initial training, marketing setup, or technology implementation?

You show 3 closures, 3 terminations, and 1 transfer in 2024. Were any of the 3 closures franchisee-initiated versus franchisor-initiated, and what were the stated reasons?

In 2023, 2 units ceased for reasons other than closure, termination, or transfer. What does 'ceased other' mean, and how frequently does this occur?

Your late payment policy includes 5% monthly fees plus $25 NSF charges and 18% annual interest. How many franchisees have been assessed late fees in the past 2 years, and what is the typical dollar range?

With a 1 renewal option for 7 years, what happens after the second term expires—is the franchisor obligated to renew, and what are the upgrade or reinvestment requirements for renewal?

The scoring shows Investment Costs at 94/100 (above typical 74–75 range) but Financial Performance at 45/100 (below typical 54–60 range). What explains this disconnect between low entry costs and below-average financial returns?

Are there any pending litigation cases, regulatory investigations, or complaints to state franchising authorities that would not appear in the 3-year litigation summary?