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2024 Franchise 500 Rank
N/R Ranked #319 last year
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Initial investment
$740K - $1.2M
Units as of 2023
68 Increase 1.5% over 3 years

Zips Cleaners (formerly Zips Dry Cleaners) was founded in 1996 by eight dry cleaning companies that aimed to create one powerhouse brand. Within a few years, Zips Cleaners became a well-known brand in the dry-cleaning business, operating on a same-day, one-price business model.

In a market where many dry-cleaning companies are mom-and-pop shops, Zips Cleaners has worked to perfect a system that reduces cleaning costs while increasing general efficiency. After beginning to franchise in 2006, Zips Cleaners replicated its streamlined operations, delivering amazing service to customers across multiple territories.

Perhaps propelled by its innovative technology and equipment, Zips Cleaners has opened over 60 franchises across the United States, with plans to develop more. The ideal candidate for a Zips Cleaners franchisee has a passion for excellence and dedication to running a business.

Why You May Want to Start a Zips Cleaners Franchise

For customers, Zips Cleaners offers competitive dry-cleaning prices at the same quality as other professional cleaners. The Zips Cleaners promise is to keep costs low by avoiding wasteful and costly practices. Other unique offers that may endear Zips Cleaners to customers include its "In by 9, out of 5" convenient policy. Zips Cleaners use in-house equipment to complete all dry-cleaning on the same day, reducing risks of loss or damage.

Some opportunities available to franchisees at Zips Cleaners include dry cleaning, household care, laundry service, and alterations. The presence of these may offer multiple revenue stream potentials.

What Might Make a Zips Cleaners Franchise a Good Choice?

To be part of the Zips Cleaners team, you should make sure you're financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for the existence of ongoing fees that will include advertising, royalty, and potential renewal fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.

A notable benefit of the Zips Cleaners franchise opportunity is the 10-year agreement for franchisees that can be renewed upon completion as long as the franchisor and franchisee are in agreement about remaining in business with one another.

How To Open a Zips Cleaners Franchise

Before making any financial commitment or signing an agreement, you must perform your due diligence and establish if this is the right opportunity for you. As part of your due diligence, you may want to speak to existing franchisees and ask the Zips Cleaners franchising team questions. 

Candidates with initial approval may get the opportunity to meet other Zips Cleaners franchisees, visit company headquarters in Greenbelt, Maryland, and finally sign a franchise agreement. After signing the franchise agreement, all franchisees undergo extensive training designed to ensure that operations are as smooth and efficient as possible.

After all that, you may find yourself owning the newest Zips Cleaners franchise!

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Company Overview

About Zips Cleaners

Industry Services (Other)
Related Categories Dry Cleaning & Laundry Services
Founded 1996
Parent Company Zips Franchising LLC
Leadership Bob Barry, CEO/President
Corporate Address 8510 Corridor Rd., #200
Savage, MD 20763
Social Facebook, Twitter, LinkedIn, Instagram, YouTube, TikTok

Business Overview

Franchising Since 2006 (18 years)
# of employees at HQ 20
Where seeking

This company is offering new franchises throughout the US.

# of Units 68 (as of 2023)

Information for Franchisees

Here's what you need to know if you're interested in opening a Zips Cleaners franchise.

Financial Requirements & Ongoing Fees

Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.

Initial Franchise Fee Information Circle
$30,000
Initial Investment Information Circle
$739,700 - $1,175,000
Net Worth Requirement Information Circle
$700,000 - $1,500,000
Cash Requirement Information Circle
$350,000 - $600,000
Veteran Incentives Information Circle
20% off franchise fee
Royalty Fee Information Circle
6%
Ad Royalty Fee Information Circle
5%
Term of Agreement Information Circle
10 years
Is franchise term renewable? Yes
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Financing Options

Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.

Third Party Financing Zips Cleaners has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll

Training & Support Offered

Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.

On-The-Job Training 80 hours
Classroom Training 40 hours
Ongoing Support
Newsletter
Meetings & Conventions
Toll-Free Line
Grand Opening
Online Support
Security & Safety Procedures
Lease Negotiation
Field Operations
Site Selection
Proprietary Software
Franchisee Intranet Platform
Marketing Support
Co-op Advertising
Ad Templates
National Media
Regional Advertising
Social Media
SEO
Website Development
Email Marketing
Loyalty Program/App

Operations

Additional details about running this franchise.

Is absentee ownership allowed? Yes
Can this franchise be run from home/mobile unit? Information Circle
No
Can this franchise be run part time? Information Circle
No
# of employees required to run 12
Are exclusive territories available? Information Circle
Yes
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Franchise 500 Ranking History

Compare where Zips Cleaners landed on this year's Franchise 500 Ranking versus previous years.

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Disclaimer
The information on this page is not intended as an endorsement or recommendation of any particular franchise or business opportunity by Entrepreneur Media. Our listings and rankings are solely research tools you can use to compare opportunities. Entrepreneur stresses that you should always conduct your own independent investigation before investing in a franchise or business opportunity. That should include reviewing the company's legal documents, consulting with an attorney and an accountant, and talking to former and current franchisees/licensees/dealers.
Updated: December 12th, 2022