Lapels Franchise Cost, Profit & Failure Rate 2024

Lapels Franchise

Lapels is a well-known American brand for dry-cleaning services. If you want to start a good franchise, the Lapels franchise is an excellent choice for you.

It’s counted among the top 10 dry cleaning franchises to own and if you are a retiree then this is one of the best franchises for retirees to start their next adventure!

This article will give you all the details about the Lapels franchise. It will be useful if you are thinking about starting this franchise. So, please keep reading to learn more.

About Lapels

Kevin DuBois founded Lapels in 2002. It offers a full range of services like Dry Cleaning, wedding gown cleaning, shirt laundry, leather and suede cleaning, and more.

Lapels has been a leader in dry cleaning for more than twenty years. It is a big name in the $9 billion dry cleaning industry.

The company uses a 100% non-toxic cleaning process that is good for the environment.

Lapels allows people to start franchises even if they don’t have any experience. There are three kinds of franchise opportunities – a traditional retail store, a satellite store, and mobile units.

All these stores need different amounts of money to start. But the rules for running the business are the same for all of them.

The Lapels business model is flexible and lets you grow your business in different ways. You don’t need to keep any inventory, and the cost to start is not too high.

They offer training and support but don’t give any money help or other discounts to franchisees.

Lapels Franchise Model

Cost Or FeesAmount
Foundation Year2000
Franchise-Fee$20,000 – $30,000
Total Investment$86,502 – $710,122
Ongoing Royalty-Fee5.0%
Ad Royalty Fee2%
Total Outlets43

Lapels Franchise Training Program

Lapels has a training program for new franchises that lasts 133 hours. This includes 10 hours in a classroom and the rest in hands-on training.

Details about the cost of training or other things are not given here. You need to read the Franchise Disclosure Document to find out more about these rules.

Lapels also helps franchisees with regular support and monthly webinars. They teach you how to run the business, including marketing, keeping track of money, and other important things.

Lapels Franchise Revenue & Profit

Lapels Franchise Revenue & Profit

The money made by Lapels franchise stores can change based on things like how often the store is open, how many people come in, where the store is located, and the size of the store.

No exact details are available about the revenue and profit of the Lapels franchise because the company has not shared this information.

But looking at the industry standards for dry cleaning, owners usually make between $150,000 to $185,000. So, it’s likely that Lapels franchise owners make money in this range.

Failure Rate Of Lapels

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change

For the Franchised outlets:

  • In 2020, the failure rate was (4)/89×100≈4.49%
  • In 2021, the failure rate was (4)/85×100≈4.71%
  • In 2022, the growth rate was (2)/81×100≈2.46%

According to the above-mentioned data, we can see that the franchised outlets for Lapels grew only in 2022, showing a growth rate of 2.46%. Earlier the company experienced decline, showing a failure rate between 4.49% and 4.71%.

Payback Period Of Lapels

With an investment of $30,000 and a yearly profit of $185,000, we can calculate the payback period of the Lapels franchise.

So, to find out how long it will take to earn back the initial investment:

Payback Period = Investment / Yearly Profit = $30,000/ $185,000= 0.16 or 16 months

Based on these figures, it will take approximately 16 months to pay back the initial investment for Lapels. This time period could be longer or shorter depending on your sales, revenue, and profit figures.

Term & Renewal of Agreement

The starting time for the Lapels franchise agreement is 10 years. When that time ends, the franchisee can renew for another 10 years if they follow all the rules set by the company.

Lapels Financing Assistance

Lapels doesn’t provide direct or indirect financing options to people who start a franchise. They also don’t promise to pay any loans or leases for the franchisees.

Some companies might offer financing through another lender, but Lapels does not share any information about this kind of help.

If you need to know more about how to pay for the franchise, you can ask for more details on the official website. They will give you all the information you need.

For those looking to open a franchise in the dry cleaning industry, possibilities include  Zips Dry CleanersOXXO Care CleanersComet CleanersCD One Price Cleaner and Pressed 4-Time.

Lapels Comparison

Founded In20001949
Initial Investment$86,502 – $710,122$60,000-$385,000
Franchise-Fee$20,000 – $30,000$69,500
Liquidity$80,000 – $250,000$100,000
Total Outlet43450
Annual Revenue$17.9 Million$3.0 Million

Frequently Asked Question

How many Lapels franchises are there?

Lapels have more than 43 units across the U.S.

Does Lapels franchise offer finance?

No, Lapels franchisees do not offer any financing option. 

Where is Lapels Services headquartered?

The headquarters of Lapels is located in Naples, Florida

Does Lapels offer franchises?

Yes, Lapels offers franchises.

How much does a Lapels Franchise Cost?

An initial investment required to open a Lapels franchise is $20,000 – $30,000, with an additional franchise fee of $86,502 – $710,122.

Who founded Lapels?

Kevin DuBois founded Lapels in 2002. He is also the CEO of the company.

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