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- 2022 Franchise 500 Rank
#312 Ranked #229 last year
- Initial investment
$730K - $1.3M
- Units as of 2021
70 27.3% over 3 years
Here’s what you need to know if you’re interested in opening a Zips Cleaners franchise.
Zips Dry Cleaners was founded in 1996 by eight dry cleaning companies that aimed to create one powerhouse brand. Within a few years, Zips Dry 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 Dry Cleaners has worked to perfect a system that reduces cleaning costs while increasing general efficiency. After beginning to franchise in 2006, Zips Dry Cleaners replicated its streamlined operations, delivering amazing service to customers across multiple territories.
Perhaps propelled by its innovative technology and equipment, Zips Dry Cleaners has opened over 60 franchises across the United States, with plans to develop more. The ideal candidate for a Zips Dry Cleaners franchisee has a passion for excellence and dedication to running a business.
Why You May Want to Start a Zips Dry Cleaners Franchise
For customers, Zips Dry Cleaners offers competitive dry-cleaning prices at the same quality as other professional cleaners. The Zips Dry Cleaners promise is to keep costs low by avoiding wasteful and costly practices. Other unique offers that may endear Zips Dry Cleaners to customers include its "In by 9, out of 5" convenient policy. Zips Dry 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 Dry 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 Dry Cleaners Franchise a Good Choice?
To be part of the Zips Dry 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 Dry 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 Dry 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 Dry Cleaners franchising team questions.
Candidates with initial approval may get the opportunity to meet other Zips Dry 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 Dry Cleaners franchise!
About Zips Cleaners
- Franchising Since
- 2006 (16 years)
- # of employees at HQ
- Where seeking
This company is seeking new franchisees throughout the US.
- # of Units
- 70 (as of 2021)
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
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $729,700 - $1,290,000
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
- $1,500,000 - $2,400,000
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
- $500,000 - $600,000
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Veteran Incentives
- 20% off franchise fee
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 10 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
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
NewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresLease NegotiationField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Co-op AdvertisingAd TemplatesNational MediaRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- # of employees required to run
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Franchise 500 Ranking History
Compare where Zips Cleaners landed on this year’s Franchise 500 Ranking versus previous years.
Curious to know where Zips Cleaners ranked on other franchise lists? Find out below.
Are you eager to see what else is out there? Browse more franchises that are similar to Zips Cleaners.
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