We are a Delaware limited liability company. Sir Grout Franchising LLC was formed on March 13, 2007. We do business under the< name ‘‘Sir Grout Franchising, LLC.” Our principal business address is 4840 Plainsman Circle, Cumming, GA 30028. Our telephone number is (866) 476-8863 and our facsimile number is. (866) 476-8863. Our agents for service of process in the stales whose franchise laws require us to name a state agency as agent for service of process are shown On Exhibit
We began offering Sir Grout® franchises in August 2007. We do not operate businesses of the type being offered in this disclosure document. We have not conducted any other line of business. We have not offered franchises in any other line of business.
We franchise businesses that provide full tile and grout cleaning, sealing, caulking and restoration services as well as other services, including but not limited to slip resistant product application, sand-free wood renewal services, stone restoration services and coating for tile, grout, stone, concrete and metal; those services provided in conjunction with a proprietary system defined below (the “Franchised Business”), Our proprietary system (the “System”) consists of a business format, high quality products, skilled technicians and our proprietary job booking system, among other features. The System is identified by means of certain trademarks; trade names, service marks, logos, emblems and indicia of origin (“Principal Trademarks”). The System is also identified by means of certain distinctive, identifiable trade-dress including but not limited to unique vehicle wraps; uniform standards of operation,, quality and uniformity of products and services; procedures for inventory, management and financial control; training and assistance; and advertising and promotional programs. The System includes proprietary method for tile and grout cleaning, sealing, caulking and restoration services as well as other services including but not limited to slip resistant product application, sand-free wood renewal services, stone restoration services and coating for tile, grout, stone, concrete and metal designed to enhance and protect a business or home's health and appearance. Our mission is to “delight customers with distinctive services and uncommon results.”
You must pay to us an initial franchise fee (“Initial Franchise Fee”) in a lump sum payment of $19,500, payable upon signing the Franchise' Agreement. The Initial Franchise Fee will be; deemed fully earned and nonrefundable upon signing the Franchise Agreement. You must also: pay to us a territory; fee (“Territory Fee”) in a lump sum payment of$19,500 upon signing the Franchise Agreement. The Territory Fee will be deemed fully earned and nonrefundable: upon signing the Franchise Agreement; If you purchase a second franchise within six months of the purchase of a Sir Grout® franchise the Territory Fee for that Sir Grout^ franchise will be $17,000. We typically assign franchisees a territory with approximately 175,000 marketable residential addresses.Tfyou would like to purchase a territory with more than r75„000 marketable residential addresses, we will, increase the Territory Fee by an additional $2,500 for every additional 25,0O0 marketable residential addresses. For example the Territory Fee for a territory with 225,000 marketable residential addresseswould.be $24,500 for your first Franchised. Business arid $22,000 for your second Franchised Business if purchased within six months of your first. Before your Franchised Business opens, you will be required to purchase from us or an Affiliate a package of products and supplies necessary for the implementation of the System (“Right Start Package”). The Right Start Package will cost between $14000 and $ 17,000.1 you will pay the fee for the Right Start Package in a lump sum pay merit. The fee for the Right: Start Package is nonrefundable. The Franchisor maintains a national and local websites online (the “Websites”), you will be required to pay to list are annual fee of $50 and a monthly fee of $49 for maintenance of the Websites. The first impairment is due before the Franchised Business opens. The Websites fee is nonrefundable you will also be required to pay a business center fee. The Cost for up to two (2) contiguous territories, is $500 per month for the first six months and then $1,100: per month thereafter. The business center fee is nonrefundable. See Item 6 for rioted information on the business center fee. During the term of your Franchise Agreement and any successor franchise agreement, we may, upon our mutual agreement, grant you the right to purchase an additional franchise in exchange for an Additional Franchise Right Fee in the amount of $25,0O0. If granted, you will have the right for a period of one (1) year to purchase an additional franchise in an agreed upon territory. If you exercise you. Right to purchase an additional franchise, the Additional Franchise Right Fee will be credited against the total of the then-current Initial Franchise Fee and Territory Fee. To purchase an additional franchise, you must sign the then-current form of franchise agreement, meet our then-current qualifications for a Sir Grout® Franchisee and pay the: balance of die then-current Initial franchise Fee and Territory Fee. The Additional Franchise Right Fee is fully earned at the time you make the payment to us and is nonrefundable regardless of whether you exercise the right to purchase an additional franchise. If you do not exercise this right within one (1) year, you will the forfeit the right arid the Additional Franchise Right Fee will not be returned to you. We may provide you with the option to sign and. YOU must pay an Area Development Fee calculated by multiplying the number of Franchised Businesses to be developed by $5,000. You must pay the; Area Development Fee when you! Sign the ADA. The Area development Fee is fully earned at the time you make the payment to us and is not refundable regardless of whether you open any or all of your Franchised Businesses. The Area Development Fee will be reedited against initial franchise fees at the time initial franchise fees become due for each Franchised Business.to be. Developed at a rate of $5,000 per Franchised Business.
We do not offer direct or indirect financing. We do not guarantee your note, lease or obligation. We do not engage in the practice of selling, assigning, or discounting to a third party, in whole or in part, any note, contract or other instrument executed by you. However we may do so in the future. Neither we nor our affiliates receive any direct or indirect payments from any person for the placement of financing
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. Other than this Item 19, we do not make any representations about a franchisee's future financial performance or the past; financial performance of company-Owned or franchised Outlets. We also do not authorize our employees or representatives to make any such representations either orally or in writing. If you are purchasing at existing outlet, however we may provide you with the actual records of that outlet. If you receive any Other financial performance information or projections of your future income, you should report it to the franchisor's management by contacting Jeff Gill, 4840 Plainsman Circle, Cummings GA 30028, Tel: (866) 476-8863, the Federal Trade Commission, and the appropriate state regulatory agencies^ The following information represents the “Gross Revenues” Of32 Out of our 39 franchised units for the time period of January 1, 2018 to December 31, 20 f8. The remaining 7 franchised units did not report their Gross Revenues to us as of this disclosure document. As used in this Item 19, the term “Gross Revenues” has the same definition given to it in Note 2 to this Item 6 of this FDD.