Funding Request for The Groutsmith
Introduction:
I am a Groutsmith Franchisee. The Groutsmith is the leading grout and tile
cleaning and restoration service in the country. My exclusive territory, that I have
had since 2019, is all of Miami Dade County. It is actually 2 territories. My
associate who has the Broward County Franchise wants to sell his franchise due to
his age. He approached me because he only wants to sell to me due to our good
professional relationship and how he knows I will take care of his staff that he has
had for 10 years. His 2 technician crew with 10 years of experience are the 2 best
technicians in the entire franchise. He is extremely loyal to his staff and he knows
that I am the right person to take over his franchise and treat his staff with same
type of respect and loyalty that he does. His price for his Franchise is $250,000.
This includes his 3 vehicles and all of hisinventory of supplies. My request is for
$300,000, $250,000 for the Franchise and $50,000 for working capital. My offer to
an investor for the $300,000 is 49% of both Dade and Broward Counties.
My Team:
Currently my team consists of my one technician and myself. My technician
started with me 3 years ago completely untrained and now is a highly skilled grout
technician that gets fantastic reviews from our customers.
Problem:
My problem is not having the capital to buy my associates Franchise. That is why I
am looking for an investor.
Solution:
I looked at this opportunity from the eyes of an investor. What is it that would
attract to them to make a $300,000 investment with someone they haven’t met.
This is where I came up with the idea of giving up half of both Franchises for the
opportunity for me to have half of both and operate both. Would I rather have
both outright? Of course, but conventional business loans were not available to
- To me opportunity for both Franchises is worth giving up half of mine.Business Model:
The main thing that The Groutsmith does is clean and seal grout. Our two main
types of work are cleaning and color sealing the grout on porcelain and ceramic
tile floors and Shower Restoration. We do all of our work by hand, we use
Groutsmith proprietary products, we never use steam or high pressure water
(both of those methods can damage tile and grout). When a tile installer installs
tile they never seal the grout. Why seal the grout? Most of our customers call us
because they have beautiful tile floors with ugly, dirty grout that they can’t clean.
We can make dirty black grout lines look white again and easily stay that way with
routine cleaning. We have over 50 different colors of our exclusive Groutsmith
Restoration Sealer. In most cases our customers want us to match the color of the
grout to the color of the tile so we create a seamless looking floor. When we do
showers we do thorough inspections at the time of the free estimate that we do.
We check the wall joints, the floor joints, every grout line in the shower including
soap cubbies and steps going into the shower along with special attention to the
shower floor. We determine the best way to attack the issues of that particular
shower and color match everything up. For old looking, poor condition showers
we first make them water tight then we make them beautiful. Both my franchise
and my associates have never received anything but a 5 star review.
Competition:
Miami Dade County and Broward County are highly competitive market for skilled
labor and anything else in the service industry. There are a lot of workers claiming
to be skilled that work for very cheap prices. Once you build a great reputation
and everyone is aware of it you become in very high demand. There are quite a
few mom and pop companies doing jobs similar to ours and another Franchise
that does not have the great reviews and reputation that we have. Throughout
the country The Groutsmith has the best reputation of anyone that does what we
-
Own The Market:
As previously stated we have nothing but 5 stare reviews. Broward County has
over 100 5 star reviews on google. With google once you receive over 100 5 star
reviews they have a lot of special perks that they give. It is a very special plateau
with google. Once the deal goes through I will no longer be working the jobs. I won’t be able to be doing jobs and do all the estimates for both Dade and
Broward County. I am already looking into hiring another technician to work with
the technician that I have been training and working with. Not being locked down
to doing the work will allow me to be more active in driving the business. My plan
is to use this time to both drive sales and be more of a known presence in both
territories.
Traction:
I started in March of 2019. The amount of knowledge that I have gained by
actually doing the work sets me aside from most other Grout and Tile Cleaning
companies. That along with having a highly trained and loyal crew sets this
business up to grow. What attracts to me to this deal is not just a larger territory, it
is getting a territory with a fantastic crew. Along with the Broward County crew is
the woman who has been running his office. She has been with him for 10 years
also. She answers every phone call and schedules all the estimates. She designed
and maintains his website. She also does all of his social media work for him. She
is very well trained and knows exactly what work we do and what work we don’t
accept. Having her knowledge and skills will make a huge difference in Miami
Dade County. I have spoken to her many times and we get along very well.
Funding and Projection:
I am looking for $300,000. The Broward County Franchisee is asking for $250,000
and he is very firm on that price. I want an additional $50,000 for working capital.
There are a few changes I need to make to keep Miami Dade County and Broward
working the same way. Dade County needs to add workers Compensation, a
county license, and start a payroll service. The $50,000 will go directly into a new
account that all the deposits and withdraws will go into and come out of. All
withdraws are strictly for Groutsmith operations. At the end of each month we
will do our distributions for the set amount that is over our operating budget. My
plan is for me to go on a salary of $1000 per week. The monthly distribution will
start at 75% to the investor and 25% to me. At this time Broward County is doing
sales of about $20,000 per month and Dade is at about $11,000 per month. At
30% profit that is $9,300 per month. 75% of that is just under $7,000 per month. If
everything stayed the same with no growth the investment would be returned in
43 months. Once your investment is returned and you own half of both Dade and Broward County and continue to receive profits. The split of the profits will change
to 60% for the investor and 40% for me when the combined monthly sales reach
$40,000. When the total pay out to the investor reaches the $300,000 investment
the split goes to 50% for each.
Please got my website: groutsmithmiami.com and Browards website: groutsmith
southflorida.com to dee all the reviews and before and after photosin our photo
galleries