About ZIPS Dry Cleaners Franchise
ZIPS Dry Cleaners is a value priced dry cleaning franchise that has been franchising since 2006 under Value Drycleaners of America, LLC.
The brand disrupted the traditional dry cleaning industry with a flat rate pricing model that offers customers a simple, transparent alternative to per item pricing.
ZIPS locations provide same day service on garments dropped off before a morning cutoff time, emphasizing speed and convenience.
ZIPS Dry Cleaners Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,000 | One-time payment upon signing |
| Royalty Fee | 6% of Royalty Net Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 5% total (1.5% National + 2.5% Regional + 1% Local) | National brand fund |
| Total Investment Range | $184,250 – $1,290,000 | Includes build-out, inventory, working capital |
The investment range of $184K–$1.3M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Royalty Net Sales) and marketing fee (5% total (1.5% National + 2.5% Regional + 1% Local)) are ongoing costs paid as a percentage of gross sales.
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 |
| Renewal Fee | $10,000 |
| Technology Fee | $425/month ZIPSsoft |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 3+ weeks (120 hours) |
| Classroom Training | 40 |
| On-the-Job Training | 80 |
| Training Location | Elkridge, MD |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected Area (~2-mile radius) |
| Exclusive Territory | No |
| Territory Size | ~2-mile radius |
| Description | Not exclusive, numerous exceptions |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 5 years (2 renewals) |
| Renewal Fee | $10,000 |
| Transfer Fee | $10,000 |
| Non-Compete Period | 2 years |
| Non-Compete Details | Within 25 miles |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Operating Principal must devote full time, own 10%+ equity |
| Required Suppliers | Up to 95% from approved suppliers. ZIPSsoft is sole software supplier |
ZIPS Dry Cleaners Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
ZIPS Dry Cleaners Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
ZIPS Dry Cleaners System Growth
ZIPS Dry Cleaners currently operates 64 franchised locations and 3 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 0 | 3 | 66 |
| 2020 | 0 | 0 | 66 |
| 2021 | 0 | 2 | 64 |
Transfers: 0 | Closures: 5
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
ZIPS Dry Cleaners Franchise — FAQ
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