ZIPS DRY CLEANERS

ZIPS DRY CLEANERS

ZIPS Dry Cleaners franchises operate garment care businesses offering dry cleaning and laundry services through a proprietary system featuring competitive flat-rate pricing, same-day service, efficient integrated production processes, and standardized layouts in Plant Facilities (with on-site processing) or Drop Facilities (satellite drop-off points). Franchisees develop and operate outlets under the ZIPS brand, adhering to strict operational manuals, training, and specifications to ensure consistency. The business model targets busy consumers seeking convenient, affordable garment care in high-traffic locations like in-line malls or freestanding buildings on major thoroughfares.

66
Locations
$740K–$1175K
Investment
Since 2006
Franchising
ServicesSavage, MDValue Drycleaners of America, LLCwww.321zips.comDisclaimer

Franchise Costs


Franchise Fee
$30,000
Item 5 of FDD
Initial Investment Range
$739,700 $1,175,000
Low: $739,700High: $1,175,000
Item 7 of FDD
Royalty Rate
6.00%
of gross sales
Brand Fund
2.00%
Item 6 of FDD
Fixed Monthly Fees
$425 – $425
Item 6 of FDD

6% royalty + 2% national marketing fund (up to 4%) + $425/mo ZIPSsoft software license fee. Total marketing obligation 5% of net sales.

Financial Performance


Item 19 Financial Performance

Average Gross Revenue
$0
Median Gross Revenue
$0
Average Net Profit
$0
Average Gross Profit
$0

Data Based On: 56 franchised ZIPS Cleaners Businesses (49 Plant Stores and 7 Drop Stores) open for the full year 2023, based on unaudited financial statements.

* Calculated weighted average for 49 Plant Stores and 7 Drop Stores. Average Gross Revenue: ((1,117,710 * 49) + (481,446 * 7)) / 56 = $1,038,177.0. Median Gross Revenue: ((1,019,266 * 49) + (450,597 * 7)) / 56 = $948,182.375. Average Gross Profit: ((1,004,802 * 49) + (440,924 * 7)) / 56 = $934,317.25. Average Net Profit (Income Before General and Administrative Expenses): ((294,613 * 49) + (178,059 * 7)) / 56 = $280,043.75. Best Guess Profit Low (Low Income Before G&A): ((-57,779 * 49) + (105,564 * 7)) / 56 = $-37,361.125. Best Guess Profit High (High Income Before G&A): ((870,782 * 49) + (447,388 * 7)) / 56 = $817,857.75.

Extracted Item 19 Section

How ZIPS DRY CLEANERS Compares


Key Insights

  • Higher investment than 96% of Cleaning Services franchises
  • Lower than average SBA loan default rate in Cleaning Services
FranchiseInvestmentFeeRoyaltyLocations
ZIPS DRY CLEANERS
Current
$740K – $1.2M$30K6.0%66
THE MAIDS$82K – $160K$57K6.9%1,517
Chem-Dry$119K – $265K$36K7.0%1,099
MERRY MAIDS$127K – $170K$55K7.0%802
OpenWorks$4K – $134K$25K15.0%615
OXI FRESH CARPET CLEANING$54K – $105K$48KN/A481
Cleaning Services Average
72 franchises
$187K – $374K$45K7.1%

* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 72 Cleaning Services franchises by location count.

Locations & Growth


Outlet Growth Over Time

Total outlets at end of each year

Geographic Distribution (2023)

Outlets by state across the United States

Top States
1MD
29
2VA
16
3PA
8
4TX
5
5IN
2
6DC
2
7CA
1
8IL
1
9OH
1
10FL
1
11OR
0

SBA Loan History


Historical SBA 7(a) loan data for ZIPS DRY CLEANERS franchisees (20102025)

Total Loans
25
Average Loan
$697,892
Total Volume
$17.4M
Default Rate
8.0%

Loans by Year

SBA 7(a) loan activity over time

* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.

Franchisee Contacts


69 franchisee contacts on file from official FDD filings.

NameSBA Loan
John Smith
ABC Franchise LLC
$350,000
2023 · Active
John Smith
ABC Franchise LLC
$350,000
2023 · Active
John Smith
ABC Franchise LLC
$350,000
2023 · Active
John Smith
ABC Franchise LLC
$350,000
2023 · Active
John Smith
ABC Franchise LLC
$350,000
2023 · Active

69 Contacts Available

Unlock all ZIPS DRY CLEANERS franchisee contacts with verified contact information

Due Diligence


Litigation (Item 3)

Franchisee Cases0
No litigation involving franchisees reported

Bankruptcy (Item 4)

Bankruptcy HistoryNo
No bankruptcy history reported

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations
0
Non-Renewals
0
Reacquired
0
Ceased Ops
2
Transfers
0
Sold to Franchisees
0
Projected New
5

Frequently Asked Questions


The total initial investment to open a ZIPS DRY CLEANERS franchise ranges from $739,700 to $1,175,000. This includes a franchise fee of $30,000. Ongoing royalty fees are 6.0% of gross sales.

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