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Business Description

The name of the Franchisor is Grout Doctor Global Franchise Corp. In this disclosure document Grout Doctor Global Franchise Corp. is referred to as “we” or “us” or “Our” or “Grout Doctor”; “you” or “yours” means the person or persons, individually and collectively, who buys the franchise from us and includes the current and future owners of a franchisee that is a corporation, partnership or other entity. If you are a corporation, partnership or other entity, your owners must sign an agreement that all provisions of the franchise agreement will also apply to your owners, and they must personally guarantee and be personally bound by your obligations under the franchise agreement. Our company was incorporated in April 2001 in Nevada. Our principal place of business is 2150 South 1300 East, Suite 500, Salt Lake City, Utah 84106. Our fiscal year ends on December 31st. Our websites are located at www.groutdoctor.com and www.groutdoctorfranchise.com. Our agents for service of process in various states are disclosed in Exhibit “D.” Franchisor Business Activities We offer and sell franchises for The Grout Doctor® franchise businesses. We do not own or operate a business of the type to be operated by you. We began offering Grout Doctor® franchises in 2001. In addition to operating the Grout Doctor® franchise, we currently provide tools, products and supplies to franchisees and operate the Data Center. We also offer products to the public. We have no other business activities. We have not offered franchises in any other line of business or under any other name. We are not engaged in any other business. We have no affiliates, parents or predecessors required to be disclosed in this item

Prior Experience

We offer and sell franchises for The Grout Doctor® franchise businesses. We do not own or operate a business of the type to be operated by you. We began offering Grout Doctor® franchises in 2001. In addition to operating the Grout Doctor® franchise, we currently provide tools, products and supplies to franchisees and operate the Data Center. We also offer products to the public. We have no other business activities. We have not offered franchises in any other line of business or under any other name. We are not engaged in any other business. We have no affiliates, parents or predecessors required to be disclosed in this item

Business Offered

We license and train others to operate Grout Doctor® businesses. As a Grout Doctor® business, you will offer a mobile service specializing in residential and light commercial grout, tile and stone cleaning, sealing, re-coloring, repair, re-grouting and re-caulking maintenance services, refinishing, permanent protective coatings and other supplemental services. The grant of a franchise authorizes you to engage in our complete system under the name and mark “THE GROUT DOCTOR®,” the phrases “WE CURE SICK GROUT®” and “PRETTY TILE, UGLY GROUT?®” and other proprietary marks to perform grout and tile repair, maintenance and refurbishing services and stone care to residential and light commercial customers. Our system includes, among other things, confidential manuals, teaching methods, standards, merchandising, marketing, décor, the sale of products and services, and other confidential business information, procedures, specifications and services as we may develop. As a Grout Doctor® franchisee, you will have the opportunity to use the Grout Doctor® system only within a specific territory. You will be required to purchase specific materials, supplies and equipment and to strictly follow our standards, methods, policies and procedures in the operation of your franchise business, which are more particularly described in our franchise agreement attached as Exhibit “A” to this disclosure document. As our franchisee, you must offer residential grout, tile and stone cleaning, sealing, recoloring, repair, regrouping, re-caulking and other maintenance services as defined in Exhibit “A-6” of the franchise agreement. Upon the payment of your initial franchise fee, we will provide to you a complete start-up package as defined in Exhibit “A-7” of the franchise agreement for that Grout Doctor® franchise business at no additional cost. In addition to residential grout, tile and stone cleaning, sealing, recoloring, repair, re-grouting and re-caulking maintenance services, Grout Doctor® franchisees may also offer light commercial grout and tile care, natural stone cleaning, sealing and refinishing, permanent protective coatings and other supplementary services. All heavy commercial services are provided through a license agreement entered into between us and Plus 10, LLC. You may have the right to perform those services in your territory in which case you will split the fees with Plus 10, LLC. If Plus 10, LLC performs the services, you will receive 7% of the fees up to $30,000 and 2% thereafter. After operating your Grout Doctor® -FDD 2019.1 7 franchise for at least 3 months, you may elect to receive training in supplemental services to offer to the public in connection with your Grout Doctor® franchise. (See Item 6). You are not required to offer optional or supplemental services. If you elect to offer natural stone refinishing, porcelain chip repair or custom fiberglass shower floor inserts, you will need to complete additional training and acquire additional tools and supplies from us or a designated supplier of ours. We may periodically modify the supplemental services available. (See Item 6). We are a member of the International Franchise Association and participate in IFA's Vet Fran Program, which provides special financial incentives to qualified veterans. We are also a member of the National Tile Contractor Association (“NTCA”) and The Worldwide Cleaning Industry Association (“ISSA”). We recommend that you form a corporation or limited liability company (which you control) to be the owner of the franchise prior to opening if there will be multiple owners or you later transfer or assign a portion of your interest in the franchise to another. We reserve the right to require you to form an entity to act as franchisee, with each individual personally guaranteeing the performance of the entity. If your franchise is operated as a partnership, corporation or limited liability company, the majority owners, partners, shareholders, members and owner-managers respectively must sign a personal guaranty.

Initial Fees

Your initial franchise fee is based on the number of owner-occupied households in your territory calculated at the rate of $0.08 per household. (Example 1: 150,000 households times $0.08 = $12,000. Example 2: 200,000 Households times $0.08 = $16,000.) A minimum territory size is approximately 150,000 owner-occupied households and a maximum territory size is approximately 200,000 owner-occupied households. The number of households located within a territory is determined by the use of GEOMETRX computer software. This software also provides demographic information by zip code for the households within the territory. This software is automatically updated twice annually. The franchise fee is payable in a lump sum by cashier's check or by draft at the time of execution of the franchise agreement (however this provision may not be applicable in certain states, see state specific addenda). The initial franchise fee for honorably discharged or retired veterans of any of the United States Military Services is reduced by fifty (50%) percent to $0.04 cents per household. The initial franchise fee for the first franchise Grout Doctor® -FDD 2019.1 9 sold in each one of the 50 United States and the District of Columbia is reduced by twenty (25%) percent to $0.06 for each household in the related territory. You may only use one reduction for the initial franchise fee even if multiple reductions may apply. The maximum reduction allowable is 50% if you are a veteran and 25% if you are not a veteran. Once you own a franchise, and subject to our approval, you may purchase additional or multiple franchises at a 50% discount, and you must sign the then-current franchise agreement. This option will only be available to you if there are franchise territories available, you meet our then-current criteria for new franchisees, you are current and not in default of your franchise agreement and, in our sole discretion, we determine to sell you another franchise. You will pay $0.04 per owner occupied household in the proposed territory. Purchase of the additional franchise at the reduced rate does not include any opening marketing, startup packages or training. The initial franchise fee is generally non-refundable, but the only exception is if we terminate your franchise based on your failure to satisfactorily complete our initial training program in our sole discretion. In that event, we will refund your initial franchise fee, minus up to $6,675 for training costs and minus any actual out-of-pocket expenses we incur in connection with your transaction. The franchise fee is not refundable under any other conditions. Except as noted above, these costs and fees are uniform for all franchisees and are non-refundable. Some states require deferral of the initial franchise fee until all of our pre-opening obligations to you are satisfied (see state specific addenda).

Financing

We do not offer direct or indirect financing. We do not guarantee your note, lease or obligation.

Franchisee Revenue and Profit

The FTC's Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets, if there is a reasonable basis for the information, and if the information is included in the disclosure document. Financial performance information that differs from that included in Item 19 may be given only if: (1) a franchisor provides the actual records of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at a particular location or under particular circumstances. Average Gross Sales of Franchises in 2018 this representation is an historic performance representation about subsets of our existing Franchises. This analysis sets forth average monthly and annual gross sales for 70 of our 78 Franchised Grout Doctor® units open as of the end of December 31, 2018 and located in the United States for the year ended December 31, 2018. The figures are based on sales as reported by the individual Standard and Non-Standard Franchises as defined below. Each of the 62 Franchise units used in the preparation of this Item 19 have been open for more than two years; 61 of the 62 are Standard Franchises; and1 is a Non-Standard Franchise. There were 8 Grout Doctor® units that were operating for 12-24 months. There were 8 Grout Doctor® units that were open for less than 12 months and have not been included as part of this Item 19. A Standard Franchise is defined by us as meeting all of the following criteria: a. the geographic location is such that a target of 150,000 owner occupied households is reasonably available. b. The demographics of the location meet our usual criteria. c. Franchisee operates their Grout Doctor® Franchise as a full-time business. A Non-Standard Franchise is defined by us as meeting at least one of the following criteria: a. the geographic location is such that a target of 150,000 owner occupied households is not reasonably available. b. The demographics of the location do not meet our usual criteria but there is other evidence that the location is viable. c. The Franchisee has declared their intent to operate their Grout Doctor® Franchise as a part-time business. The average monthly and annual gross sales provided below is for the 62 units that were open in the United States and in continuous operation during the two-year period prior to December 31, 2018, and for the 8 units that were open in the United States and in continuous operation for 12-24 months prior to December 31, 2018 based on the numbers they reported to us for determining Royalty payments due to us. The basis of accounting used by the Franchisees is determined by the individual Franchisee, but generally the Franchisees use cash basis accounting. You must estimate your own costs and expenses including, but not limited to, advertising, insurance, royalties, materials, vehicle maintenance, gas, wages, payroll taxes and professional fees. You are strongly urged to make an independent survey of the economic and market conditions and the price structure adopted by competing businesses in your area and the amount of revenue and expenses generated by those businesses and to consult your accountant, attorney or financial advisor. Some outlets have earned this amount. Your individual results may differ. There is no assurance that you will earn as much. STANDARD FRANCHISES1 Average Gross Sales as reported by the 61 Standard Franchises operating from January 2018 through December 2018 was $13,952 per month or $167,424 per year. 24 of 61, or 39.34%, attained or surpassed this average. Average Gross Sales as reported from the 8 Standard Franchises open for 12-24 months as of December 31, 2018 and operating from January 2018 through December 2018 was $10,057 per month or $120,684 per year. 5 of 8 or 62.50% of our reporting standard franchises attained or surpassed this average. Median Gross Sales as reported by the 61 Standard Franchises operating from January 2018 through December 2018 was $9,957 per month or $119,484 per year. 31 of 61, or 50.82%, attained or surpassed this average. Median Gross Sales as reported from the 8 Standard Franchises open for 12-24 months as of December 31, 2018 and operating from January 2018 through December 2018 was $10,554 per month or $126,648 per year. 4 of 8 or 50.00% of our reporting standard franchises attained or surpassed this average. Average Gross Sales as reported by the 61 Standard Franchises operating from January 2018 through December 2018 was $1,529 per month or $18,348 per year. 1 of 1, or 100.00%, attained or surpassed this average. Median Gross Sales as reported by the 61 Standard Franchises operating from January 2018 through December 2018 was $1,445 per month or $17,340 per year. 1 of 1, or 100.00%, attained or surpassed this average. 1. The average and median gross sales figures included in the above charts and additional statistics below are based on sales reports submitted to us by 61 Standard Franchisees open more than two years, the eight Standard Franchisees open 12-24 months, and the one Non-Standard Franchisee open more than two years. The figures in the sales reports have not been audited and we have not undertaken to otherwise independently verify the accuracy of such information. STANDARD AND NON-STANDARD FRANCHISES The following table shows the number of jobs completed by 62 of the 78 Grout Doctor® franchisees and the average and median job prices between January 1, 2018 and December 31, 2018. The information above was obtained from our Grout Doctor® Franchise Management Software as entered by each individual Grout Doctor® Franchisee. Every Grout Doctor® Franchisee is required to enter this information in the Franchise Management Software system. This represents the average and median of 61 Standard Franchisees, the eight Standard Franchisees open 12-24 months, and 1 Non-Standard Franchisees operating for two years or more as of December 31, 2018. The average job price for the 61 Standard Franchisees used for this Item 19 was $620.41. 25 of 61, or 40.98%, attained or surpassed the stated result. The average job price for the one Non-Standard Franchise was $417.01. 1 of 1, or 100%, attained or surpassed the stated results. The average job price for the 8 Standard Franchises operating 12-24 months was $724.85. 2 of the 8 or 25.00% of reporting standard Franchisees attained or surpassed the stated result. Grout Doctor® -FDD 2019.1 37 The medial job price for the 61 Standard Franchisees was $547.11. 31 of 61, or 50.82%, attained or surpassed the stated result. The median job price for the one Non-Standard Franchise was $417.01. 1 of 1, or 100%, attained or surpassed the stated results. The median job price for the 8 Standard Franchisees operating 12-24 months was $580.28. 4 of the 8 or 50.00% of reporting Standard Franchisees attained or surpassed the stated result. NOTE: Median job price determined using average job price due to limited reporting of specific job totals. The annual average number of jobs completed by the 61 Standard Grout Doctor® Franchisees operating two or more years was 305. Of the 61 reporting Standard Franchisees operating two years or longer, 22 of the 61 or 36.07% of standard Franchisees attained or surpassed the stated results. The annual average number of jobs completed by the one Non-Standard Franchisee was 44. Of the 1 reporting non-standard Franchisee, 1 of the 1 or 100% of non-standard Franchisees attained or surpassed the stated results. The annual average number of jobs completed by the 8 Standard Franchisees operating 12-24 months was 167. Of the 8 reporting standard Franchisees operating 12-24 months, 3 of the 8 or 37.50% of these Standard Franchisees attained or surpassed the stated results. The annual median number of jobs completed by the 61 Standard Grout Doctor® Franchisees operating two or more years was 242. Of the 61 reporting standard Franchisees operating two years or longer, 31 of the 61 or 50.82% of standard Franchisees attained or surpassed the stated results. The annual median number of jobs completed by the 1 non-standard Franchisee operating was 44. Of the 1 reporting non-standard Franchisee, 1 of the 1 or 100% of nonstandard Franchisees attained or surpassed the stated results. The annual median number of jobs completed by the 81 Standard Grout Doctor® Franchisees was 140. Of the 8 reporting Standard Franchisees operating 12-24 months, 4 of the 8 or 50.00% of Standard Franchisees attained or surpassed the stated results. You should conduct an independent investigation of the costs and expenses you will incur in operating your franchised business. Franchisees or former franchisees, listed in this disclosure document, may be one source of this information. Written substantiation for the financial performance representation will be made available to the prospective franchisee upon reasonable request. Other than the preceding financial performance representation, Grout Doctor Global Franchise Corp. does not make any financial performance representations. We also do not authorize our employees or representations to make any such representations either orally or in writing. However, if you are purchasing an existing outlet, we may provide you with actual records of that outlet. If you receive any other financial performance information or projections of your future income, you should report it to our management by contacting Regina Fischer at 2150 South 1300 East, Suite 500, Salt Lake City Utah 84106, 877-476-8800, the Federal Trade Commission and the appropriate state regulatory agency.