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The Grout Medic

The Grout Medic, LLC

Company Information

2121 Lohmans Crossing Suite 504-228 Austin, TX 78734

jc@thegroutmedic com

The Grout Medic, LLC is a limited liability company formed in the State of Delaware on September 7, 2021. Our principal place of business is 126 Garrett Street, Suite J, Charlottesville, VA 22902. We do business only under our corporate name and the name 'THE GROUT MEDIC.' As of December 31, 2022, there were 33 The Grout Medic franchisees in the U.S. operating 58 territories. Our agents for service of process are listed in Exhibit A to this Disclosure Document. The name and address of our Agent for Service of Process in Delaware is: United States Corporation Agents, Inc., 221 N. Broad Street, Suite 3A, New Castle, DE 19709

Grout Medic franchises use the trademarks of and to operate a Grout Medic Outlet A Grout Medic Outlet provides grout and tile restoration, maintenance, and refurbishing services through a uniform system consisting of high standards of service, use of quality products, and under the business format created and developed by Grout Medic (the "Grout Medic System") We offer two tiers of franchises. Tier One for metropolitan areas of at least 175,000 households (with a higher initial fee) and Tier Two for lower density areas with less than 175,000 households. Grout Medic Outlets are mobile businesses in which the services are sold and then provided in customer's homes, and therefore we will only grant you a franchise if you currently own or lease a personal vehicle suitable for traveling to customers' homes and providing Grout Medic® services The types of vehicles that are acceptable for you to use in the business are a pick-up truck, a sport utility vehicle C'SUV"), a van, or a full-sized car (eg, Ford Taurus) or a mid-sized car (eg, Honda Accord).

16 Ongoing Lawsuits

FDD Effective Date Action

Franchise Rating

Franchimp Summary Rating

8/10

Earning Transparency

7/10

Investment Accessibility

9/10

Summary of potential earnings

Average Revenue Per Unit

$200,258 / unit

Average Revenue During 2020
Franchise Type:

Building & Construction

$177,840

Industry Low

$4,027,621

Industry High

Franchise System Development

Year Units at Start of Year Units Opened Units Terminated Non-Renewals Re-Acquired by Franchisor Ceased Operations Units at End of Year

Distribution of The Grout Medic Franchisee

Employee Contact Database

# Name Position Email Phone

Summary of Investment Costs

Upfront Franchise Fees

Minimum: $70,000 Maximum: $70,000

Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.

These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.

While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.

Total Investment Costs

Minimum: $97,000 Maximum: $130,000

Ongoing Fees

Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.

These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.

Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.

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