Why The Grout Boss

The expense listed below are part of the ITEM 7 estimates that are provided in our Franchise Disclosure Document (FDD). We cannot guarantee that you will not have additional expenses starting a business as your costs will depend on how closely your follow the Grout Boss system standards, your management skill, experience and business acumen, local economic conditions and acceptance by local customers and local economic conditions.

In general, none of the expenses listed in the above chart are refundable, except any security deposits you must make may be refundable. We do not finance any portion of your initial investment.

1. Initial Franchise Fee. The Initial Franchise Fee is $14,400. For qualifying veterans, the Initial Franchise Fee is $10,000.

2. Equipment, Furnishings and Fixtures. Our estimate assumes that you will purchase tile cleaning and repair equipment and supplies including the hard surface hydro as well as the grout extractor and miscellaneous tools and chemicals. An initial supply of certain cleaning chemicals and uniform items is included without charge.

3. Service Vehicle. The Ford Transit van cost shown on the low-end estimate assumes a franchisee has an acceptable credit and finances the vehicle on a loan and the high-end estimate assumes an outright purchase as well as license & registration expense. Vehicles must meet our standards as provided for in the operations manual. You must meet the current standards for the brand, including signage, age, and model.

4. Vehicle Wrap. Your vehicle must be wrapped with an approved vehicle wrap. Wraps must be maintained in good condition at all times.

5. Insurance. The figures in the chart are your business insurance for a full year, including vehicle insurance but excluding employee-related insurance such as workers compensation. Costs for insurance increases over time. Additional information about our insurance requirements is included in Item 8.

6. Grand Opening Advertising and Promotions. Your grand opening advertising and promotions must include the elements that we require, such as print advertising in home improvement magazines, social media blasts, distribution of flyers, and participation in a home show. You must submit your grand opening advertising plan and budget for our approval.

7. Travel and Living Expenses while Training. The figures in the chart are your expenses during initial training, including your expenses for travel, lodging and meals. For this training program, we provide instructors and instructional materials for two trainees for approximately 5 days, but you will need to arrange for transportation, lodging and food. Our training program incorporates both classroom and hands-on training throughout the week. We assume you will drive from within a few hours of our training program in Florida. The cost will depend on the distance you must travel and the type of accommodations you choose. These amounts do not include any fees
or expenses for training any other personnel.

8. Computer System. You are required to have an approved laptop or tablet as well as a mobile printer which are estimated to range from $750 to $1,500.

9. Permits and Licenses. You must obtain all permits and licenses required by state and local government agencies for your Franchised Business. We recommend that you verify the permits and licenses you will need, and the costs associated with the required permits and licenses before you sign the Franchise Agreement.

10. Professional Fees. We strongly recommend that you retain an attorney and/or an accountant to advise you regarding this franchise offering. The actual amount you will pay for these services will depend on the extent to which you rely on your advisors and their rates.

11. Additional Funds. You will need capital to support ongoing expenses, such as payroll, equipment leases, materials, and other operating costs. New businesses often generate a negative cash flow. We estimate that the amount given will be sufficient to cover ongoing expenses for the start-up phase of the business, which we estimate to be three months. This is only an estimate and there is no guarantee that additional working capital will not be necessary during this start-up phase or after. Your costs will depend on factors such as how much you follow our System and procedures, the local market for the services your Franchised Business will provide, the prevailing wage rate, competition, and the sales level reached during the initial period.

12. Total. We relied upon our affiliate’s experience in operating a grout servicing business in Florida since 2006 when preparing these figures. However, these figures are merely an estimate and there is no assurance that additional working capital will not be necessary during your initial three months of operations or after the initial phase. We do not provide financing for any part of the initial investment