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.
Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.
Overview
Financial Requirements
6% royalty + 2% national marketing fund (up to 4%) + $425/mo ZIPSsoft software license fee. Total marketing obligation 5% of net sales.
Franchise Stats
Financial Performance
Item 19 Financial Performance
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 to Other Cleaning Services Franchises
Key Insights
- Higher investment than 96% of Cleaning Services franchises
- Lower than average SBA loan default rate in Cleaning Services
| Franchise | Investment Range | Franchise Fee | Royalty | Locations |
|---|---|---|---|---|
ZIPS DRY CLEANERS Current | $740K - $1.2M | $30K | 6.0% | 66 |
| THE MAIDS | $82K - $160K | $57K | 6.9% | 1,517 |
| THE MAIDS | $118K - $141K | $60K | 6.9% | 1,472 |
| Chem-Dry | $119K - $265K | $36K | 7.0% | 1,099 |
| MERRY MAIDS | $127K - $170K | $55K | 7.0% | 802 |
| OpenWorks | $4K - $134K | $25K | 15.0% | 615 |
Cleaning Services Average 72 franchises | $187K - $374K | $45K | 7.1% | - |
* 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
SBA Loan History
Historical SBA 7(a) loan data for ZIPS DRY CLEANERS franchisees (2010 - 2025)
Loans by Year
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
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Due Diligence
Litigation (Item 3)
No litigation involving franchisees reported in the FDD.
Bankruptcy (Item 4)
No bankruptcy history reported in the FDD.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
How much does it cost to open a ZIPS DRY CLEANERS franchise?
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.
How much revenue does a ZIPS DRY CLEANERS franchise make?
According to the 2024 FDD, the average gross revenue for a ZIPS DRY CLEANERS franchise is $1,038,177. The median revenue is $948,182.38.
How much profit can you make with a ZIPS DRY CLEANERS franchise?
Based on the financial performance data in the FDD, estimated profit for a ZIPS DRY CLEANERS franchise ranges from $-37,361.13 to $817,857.75 per year. Actual results vary based on location, management, and market conditions.
How many ZIPS DRY CLEANERS franchise locations are there?
As of the 2024 FDD, ZIPS DRY CLEANERS has 66 franchise locations. The company has been franchising since 2006.
Can you get an SBA loan for a ZIPS DRY CLEANERS franchise?
Yes, SBA loans are available for ZIPS DRY CLEANERS franchises. Historical data shows 25 SBA 7(a) loans have been approved for ZIPS DRY CLEANERS franchisees, with an average loan amount of $697,892. The historical default rate is 8.0%.
Is ZIPS DRY CLEANERS a good franchise to buy?
ZIPS DRY CLEANERS shows several positive indicators: transparent financial performance data (Item 19), low SBA loan default rate. However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.
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