Zips Dry Cleaners Franchise is famous for its great price. If you’re looking to add a profitable franchise to your business, Zips Dry Cleaners is an excellent choice.
This is among the best dry cleaning franchises to have.
For more details on Zips Dry Cleaners, read our complete article. It includes information on profits, fees, costs, qualifications, and more. Let’s start!
About Zips Dry Cleaners
Zips Dry Cleaners was started in 1996 by eight dry cleaning businesses aiming to make a strong brand.
Quickly, they became a popular brand in the dry-cleaning world.
Now, they have more than 12 units in the United States, and they’re growing fast. They have a system that cuts cleaning costs and is environmentally friendly.
The business plan for Zips Dry Cleaners is flexible. They allow people without experience to start a franchise, but the money needed is a bit more.
They can help with financing through a third party. They also give training and help to everyone who has a franchise to make the business grow.
For people who have served in the military and meet certain conditions, they take 100% off the fee to start a franchise.
Zips Dry Cleaners Franchise Model
| Cost Or Fees | Amount |
|---|---|
| Initial Investment | $600,650 – $769,500 |
| Franchise-Fee | $30,000 to $60,000 |
| Royalty-Fee | 6% |
| Area Requirement | N/A |
| Total Outlet | 12 |
Zips Dry Cleaners Franchise Revenue & Profit
How much money a Zips Dry Cleaners franchise makes can change based on where it is, how big it is, what kind of franchise model it has, how many workers, running costs, and more.
According to what we’ve heard, Zips Dry Cleaners franchises might make up to $707,349 a year.
We don’t know a lot about how much profit they make. But looking at the usual profit for this business, it’s between 22-36%.
So, we think that Zips Dry Cleaners franchise owners might make between $155,616 to $254,645 on average.
Payback period of Zip Dry Cleaners
The total investment of Zips Dry Cleaners is $769,500, and the yearly profit is $254,645. So, to find out how long it will take to earn back the initial investment:
Payback Period = Total Investment / Yearly Profit = $769,500 / $254,645 = 3.02 years
Based on these figures, it will take 3 to 4 years to recoup the initial investment for Zip Dry Cleaners. This time period could be longer or shorter depending on your sales, revenue, and profit figures.
Failure Rate Of Zips Dry Cleaners
Franchised Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2018 | 51 | 55 | +4 |
| 2019 | 55 | 63 | +8 |
| 2020 | 63 | 66 | +3 |
For the Franchised outlets:
- In 2018, the growth rate was (4)/51×100≈7.84%
- In 2019, the growth rate was (8)/55×100≈14.54%
- In 2020, the growth rate was (3)/63×100≈4.76%
According to the above-mentioned data, there is no failure rate for franchised outlets as the outlets at the end of the year increased during the span of 3 years.
We can see that the franchised outlets for Zips Dry Cleaners grew from 2018 to 2020, showing a growth rate between 7.84% and 4.76%.
Training & Support
Zips Dry Cleaners offers a 6-week training program to all new franchise owners.
During this time, they teach the special ways to do both laundry and dry cleaning. They also show you how to manage things like the back office, taking care of customers, daily tasks, and running the business.
They even provide training on how to advertise and market your business. This includes giving you materials and guidance to help your business grow.
Term & Renewal Of Agreement
The starting agreement with Zips Dry Cleaners lasts 10 years. After this time, you can renew the agreement.
But the new term is different from the first one. The renewed term lasts for 5 years.
To renew the agreement, the franchise owner must meet certain conditions.
Zips Dry Cleaners Financial Assistance
Zips Dry Cleaners and their partners don’t give direct or indirect money help to start a franchise business.
They don’t promise to pay any loans, rent, or other money matters for the franchise owners. But they do have good relationships with outside banks and lenders.
Through these banks and lenders, they might help you find a way to finance the franchise. But this money help needs certain things to be in place, like having a good credit report. If these conditions are not met, then the request for money help can be turned down.
Zips Dry Cleaners Comparison
| Company | Zips Dry Cleaners | Lapels |
|---|---|---|
| Founded In | 1996 | 2002 |
| Initial Investment | $600,650 – $769,500 | $391,031-$731,122 |
| Franchise-Fee | $30,000 to $60,000 | $50,000 |
| Total Outlet | 12 | 43 |
| Annual Revenue | $5 Million | $17.9 Million |
Frequently Asked Question
How many Zips Dry Cleaners franchises are there?
Zips Dry Cleaners has more than 12 units across the U.S.
Does the Zips Dry Cleaners franchise offer finance?
Yes, Zips Dry Cleaners franchisees offer a third-party financing option.
Where is Zips Dry Cleaners headquartered?
The headquarters of Zips Dry Cleaners is in Greenbelt, Maryland
Is Zips Dry Cleaners a franchise?
ZIPS is one of the top Dry Cleaning Franchise opportunities.
How much does a Zips Dry Cleaners Franchise Cost?
To buy a Zips Dry Cleaners franchise, you’ll require an investment of $600,650 – $769,500 and $30,000 to $60,000 as an initial franchise fee.
Who owns Zips Dry Cleaners?
The store is owned and operated by Allan Boomer and Tiffany Hawkins.
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.