Start a Zips Cleaners Franchise in 2025

Franchise 500 Rank: N/R Not ranked last year

Initial investment: $740K - $1.2M

Units as of 2024: 70 0.0% over 3 years

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
Corporate Address	8510 Corridor Rd., #200 Savage, MD 20763
Social	Facebook, Twitter, LinkedIn, Instagram, YouTube, Pinterest, TikTok

Business Overview

Franchising Since	2006 (19 years)
# of employees at HQ	25
Where seeking	This company is offering new franchises throughout the US.
# of Units	70 (as of 2024)

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.	$30,000
Initial Investment 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.	$739,700 - $1,175,000
Net Worth Requirement 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.	$1,000,000 - $1,500,000
Cash Requirement Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.	$350,000 - $600,000
Veteran Incentives Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.	20% off franchise fee
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.	6%
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.	5%
Term of Agreement 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.	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	120 hours
Classroom Training	40 hours
Ongoing Support	Newsletter Meetings & Conventions Toll-Free Line Grand Opening Online Support Security & Safety Procedures Lease Negotiation Field Operations Site Selection Proprietary Software Franchisee Intranet Platform
Marketing Support	Co-op Advertising Ad Templates National Media Regional Advertising Social Media SEO Website Development Email Marketing Loyalty Program/App

Operations

Additional details about running this franchise.

Is absentee ownership allowed?	Yes
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.	No
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.	No
# of employees required to run	12
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.	Yes