Zips Cleaners Franchise FDD, Profits & Costs (2025)
ZIPS Cleaners is a prominent garment care franchise renowned for its efficient and cost-effective services. Established in 2002, ZIPS originated from the collaboration of eight premier dry cleaners in the Baltimore-Washington Metro Area, uniting under a single brand to revolutionize the dry cleaning industry. The company’s headquarters are located in Maryland, USA.
The franchise began offering franchising opportunities shortly after its inception, allowing entrepreneurs to join its expanding network.
ZIPS Cleaners provides a comprehensive range of services, including same-day dry cleaning with an ‘in by 9, out by 5’ guarantee, laundered and pressed garments, Wash N Fold laundry, alterations, and cleaning of household items like comforters and linens.
What sets ZIPS apart from competitors is its straightforward pricing model, offering a single low price for any dry-cleaned garment, which simplifies the process for customers and ensures transparency. This approach, combined with their commitment to quick turnaround times, has solidified their reputation for convenience and reliability.
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Initial Investment
How much does it cost to start a Zips Cleaners franchise? It costs on average between $163,000 – $1,175,000 to start a Zips Cleaners franchised business.
This includes costs for construction, equipment, supplies, and initial operating expenses. The exact amount varies based on multiple factors, such as the size of the facility, its location, and whether the franchisee opts to lease or purchase the property and equipment. Zips Cleaners offers 2 types of franchises:
| ZIPS Cleaners Business Type | Initial Investment Range |
|---|---|
| ZIPS Cleaners Business (with own on-site processing plant facility) | $739,700 to $1,175,000 |
| ZIPS Cleaners Business (drop-off facility) | $163,250 to $338,000 |
We are summarizing below the main costs associated with opening a ZIPS Cleaners Business (with own on-site processing plant facility). For more information on costs required to start a Zips Cleaners franchise, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $15,000 – $30,000 |
| New Store Marketing | $10,000 – $25,000 |
| Real Property/Rent | $10,000 – $20,000 |
| Utility Deposits | $2,000 – $6,000 |
| Leasehold Improvements | $195,000 – $290,000 |
| Architectural and Engineering Fees | $10,000 – $35,000 |
| Furnishings, Fixtures, Marketing Materials, Supplies | $13,000 – $17,000 |
| Insurance | $3,000 – $7,000 |
| Signage | $20,000 – $25,000 |
| Point of Sale System/Technical Equipment | $16,000 – $25,000 |
| Software | $7,500 |
| Office Equipment & Supplies | $1,200 – $4,000 |
| Dry Cleaning / Laundry Production Equipment & Installation | $325,000 – $425,000 |
| Initial Production Supplies | $10,000 – $15,000 |
| Training | $500 – $30,000 |
| Licenses, Permits, and Professional Fees | $1,500 – $13,500 |
| Additional Operating Funds – 6 months | $100,000 – $200,000 |
| Total Estimated Initial Investment | $739,700 – $1,175,000 |
Average Revenue (AUV)
How much revenue can you make with a Zips Cleaners franchise? A Zips Cleaners franchised business makes on average $948,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $466,000 yearly revenue for similar laundry/dry cleaning franchises. Below are a few Zips Cleaners competitors as a comparison:
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Zips Cleaners Franchise Disclosure Document
Frequently Asked Questions
How many Zips Cleaners locations are there?
As of the latest available data, ZIPS Cleaners operates over 65 locations across the United States. The majority of these locations are franchise-owned.
What is the total investment required to open a Zips Cleaners franchise?
The total investment required to open a Zips Cleaners franchise ranges from $163,000 to $1,175,000.
What are the ongoing fees for a Zips Cleaners franchise?
ZIPS Cleaners requires franchisees are obligated to pay a royalty fee of 6% of their net sales, which grants them continued access to the ZIPS brand and operational support. Additionally, there is an advertising fee set at 5% of net sales, contributing to collective marketing and advertising initiatives designed to promote the brand and drive customer engagement.
What are the financial requirements to become a Zips Cleaners franchisee?
To become a ZIPS Cleaners franchisee, financial prerequisites vary depending on the type of franchise agreement. For a single-unit franchise, candidates are expected to have a minimum of $350,000 in liquid capital and a net worth of $700,000.
Those interested in multi-unit franchises should possess at least $600,000 in liquid capital and a net worth exceeding $1.5 million.
How much can a Zips Cleaners franchise owner expect to earn?
The average gross sales for a Zips Cleaners franchise are approximately $0.95 million per location. Assuming a 15% operating profit margin, $0.95 million yearly revenue can result in $143,000 EBITDA annually.
Who owns Zips Cleaners?
ZIPS Cleaners is a franchise-based company, with individual locations owned and operated by independent franchisees. The overarching franchise system is managed by ZIPS Franchising, LLC, a Maryland limited liability company formed on August 30, 2004. This entity is a wholly-owned subsidiary of Value Drycleaners of America, LLC.
Disclaimer
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