Zips Cleaners
Dry cleaning and laundry services
- 2022 Franchise 500 Rank
-
#312 Ranked #229 last year
- Initial investment
-
$730K - $1.3M
- Units as of 2022
-
66 6.5% over 3 years
Here’s what you need to know if you’re interested in opening a Zips Cleaners franchise.
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!
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
Franchising Overview
- Franchising Since
- 2006 (16 years)
- # of employees at HQ
- 16
- Where seeking
-
This company is seeking new franchisees throughout the US.
- # of Units
- 66 (as of 2022)
Franchisor Information
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
- $30,000
- Initial Investment
- $729,700 - $1,290,000
- Net Worth Requirement
- $700,000 - $1,500,000
- Cash Requirement
- $350,000 - $650,000
- Veteran Incentives
- 20% off franchise fee
- Royalty Fee
- 6%
- Ad Royalty Fee
- 5%
- Term of Agreement
- 10 years
- Is franchise term renewable?
- Yes
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
-
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
Operations
Additional details about running this franchise.
- Is absentee ownership allowed?
- Yes
- Can this franchise be run from home/mobile unit?
- No
- Can this franchise be run part time?
- No
- # of employees required to run
- 12
- Are exclusive territories available?
- Yes
Franchise 500 Ranking History
Compare where Zips Cleaners landed on this year’s Franchise 500 Ranking versus previous years.
Additional Rankings
Curious to know where Zips Cleaners ranked on other franchise lists? Find out below.
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