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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.

Since 2006ServicesSavage, MDValue Drycleaners of America, LLCwww.321zips.com
2024 FDDItem 19 AvailableSBA Loan Data

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

Investment
$739,700 - $1,175,000
Franchise Fee
$30,000
Locations
66

Financial Requirements

Franchise Fee$30,000
Initial Investment Range$739,700 - $1,175,000
Royalty Rate6.00%
Brand Fund2.00%
Fixed Monthly Fees$425 - $425

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

Franchise Stats

Franchise Locations66
Corporate Locations3
States Operating12
Franchising Since2006
FDD Year2024

Financial Performance

Item 19 Financial Performance

Average Gross Revenue
$1,038,177
Median Gross Revenue
$948,182.38
Average Net Profit
$280,043.75
Average Gross Profit
$934,317.25

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
FranchiseInvestment RangeFranchise FeeRoyaltyLocations
ZIPS DRY CLEANERS
Current
$740K - $1.2M$30K6.0%66
THE MAIDS$82K - $160K$57K6.9%1,517
THE MAIDS$118K - $141K$60K6.9%1,472
Chem-Dry$119K - $265K$36K7.0%1,099
MERRY MAIDS$127K - $170K$55K7.0%802
OpenWorks$4K - $134K$25K15.0%615
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 by Outlet Count
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 (2010 - 2025)

Total Loans
25
Average Loan Amount
$697,892
Total Loan Volume
$17,447,300
Default Rate
8.0%

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)

Franchisee Litigation Cases0

No litigation involving franchisees reported in the FDD.

Bankruptcy (Item 4)

Bankruptcy HistoryNo

No bankruptcy history reported in the FDD.

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations
0
Non-Renewals
0
Reacquired by Franchisor
0
Ceased Operations (Other)
2
System Transfers
0
Sold to Franchisees
0
Projected New Franchises
5

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.

Interested in ZIPS DRY CLEANERS?

Talk to a franchise advisor to get personalized guidance and learn if ZIPS DRY CLEANERS is the right fit for you.

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