Closet Factory vs The Grout Medic
Closet Factory vs The Grout Medic: Closet Factory costs $345K to $612K to open; The Grout Medic costs $102K to $175K. Closet Factory has 55 units, The Grout Medic has 69. SBA loan history: Closet Factory = 75 loans (16.0% default); The Grout Medic = 15 loans (0.0% default). The franchise with more SBA funded units, a lower SBA default rate, and a lower royalty load is the safer financing bet; see the comparison below.
Closet Factory vs The Grout Medic: Capital, Scale & Lending Analysis
Analysis based on FDD filings and SBA 7(a) loan level data. Each pairing reflects a unique combination of capital intensity, system scale, and financing path.
Capital Intensity
The Grout Medic requires the lower minimum capital commitment ($102K vs $345K for Closet Factory), a 238% spread. Initial franchise fees come in at $59K for Closet Factory versus $65K for The Grout Medic, Closet Factory has the lower entry fee. Ongoing royalty load is 6.75% for Closet Factory and 6% for The Grout Medic, giving The Grout Medic the lighter per-unit drag on operating income.
System Scale & Tenure
On scale, The Grout Medic operates 69 units to Closet Factory's 55. Closet Factory has been operating 43 years (founded 1983) versus 8 for The Grout Medic (founded 2018), a 35-year tenure gap that affects unit-economics maturity and FDD revision history.
SBA Lending Profile
Closet Factory has the deeper SBA lending track record, with 75 7(a) approvals compared with 15 for The Grout Medic.
Risk Signal
SBA default rates are 16.0% for Closet Factory and 0.0% for The Grout Medic, The Grout Medic has the cleaner SBA loss record by 16.0 points. PeerSense FPI scores come in at 57 (Moderate) for Closet Factory and 54 (Moderate) for The Grout Medic, giving Closet Factory the stronger composite signal across SBA performance, lender appetite, and operational consistency.
Health & Performance
FPI Score | 57/100 | 54/100 |
Health Tier | Moderate | Moderate |
Confidence | N/A | N/A |
Lending Trend | Declining | Declining |
SBA Lending
SBA Loans | 75 | 15 |
SBA Volume | – | – |
Default Rate | 16.0% | 0.0% |
Peer Tier | established | growing |
Investment & Costs
Total Investment | $345K to $612K | $102K to $175K |
Franchise Fee | $59K | $65K |
Royalty Rate | 6.75% | 6% |
Ad Fund | 15% | 2% |
Liquid Capital | N/A | N/A |
Net Worth Required | N/A | N/A |
Financial Performance (Item 19)
Item 19 Status | Disclosed | Disclosed |
System Size & Operations
Total Units | 55 | 69 |
Franchised Units | 55 | 69 |
Company Owned | – | – |
Term Length | 5 yrs | 10 yrs |
Brand Information
Year Founded | 1983 | 2018 |
Franchising Since | 1985 | 2021 |
Years Franchising | 41 yrs | 5 yrs |
Headquarters | Los Angeles, TX | N/A |
Category | Other Building Finishing Contractors | Other Building Finishing Contractors |
Website | ||
FDD Year | 2025 | 2025 |
Which Is Better, Closet Factory or The Grout Medic?
Lower upfront capital required
The Grout Medic
Closet Factory: $345K starting · The Grout Medic: $102K starting
More SBA lender confidence
Closet Factory
Closet Factory: 75 SBA loans · The Grout Medic: 15 SBA loans
Lower SBA default rate
The Grout Medic
Closet Factory: 16.0% · The Grout Medic: 0.0%
Larger system & brand presence
The Grout Medic
Closet Factory: 55 units · The Grout Medic: 69 units
Lower ongoing royalty load
The Grout Medic
Closet Factory: 6.75% · The Grout Medic: 6%
More lender financing options
Closet Factory
Closet Factory: 27 unique lenders · The Grout Medic: 6 unique lenders
Decision matrix uses publicly disclosed FDD and SBA loan data. Not a recommendation. Your best franchise depends on capital, market, operating capacity, and risk tolerance.
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About These Franchises
Closet Factory vs The Grout Medic: Franchise Funding Comparison
Comparing Closet Factory and The Grout Medic is about more than brand preference. It's about which franchise fits your financial profile and funding strategy. Investment ranges from $102K to $612K.
Closet Factory has 75 SBA loans on record and The Grout Medic has 15. Those totals are cumulative history rather than a measure of current appetite. Recent lending activity is trending down for at least one of these brands, so current lender appetite has to be checked deal by deal rather than assumed from the totals.
SBA 7(a) loans are the most common franchise funding vehicle, offering up to $5M with as little as 10% down. PeerSense connects franchise buyers with the specific lenders who have approved loans for these brands, not generic referrals, but lenders with actual franchise lending track records.
Data sourced from SBA loan records, Franchise Disclosure Documents, and public filings. Updated regularly. Not financial advice, consult with a lending professional before making investment decisions.
Closet Factory vs The Grout Medic, Frequently Asked Questions
Which is a better franchise investment, Closet Factory or The Grout Medic?
How much does a Closet Factory franchise cost compared to The Grout Medic?
Can I finance Closet Factory or The Grout Medic with an SBA loan?
Which has a lower SBA default rate, Closet Factory or The Grout Medic?
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Page Review
Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense
- PeerSense is a capital advisory firm that places commercial financing with direct capital sources; the capital source sets final terms.
- Edward L. Freeman founded PeerSense in January 2020.
- He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
- His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
- In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page
Last reviewed LinkedIn profileAbout Edward Freeman