ZIPS Dry Cleaners
As “America’s One Price Dry Cleaner,” ZIPS is revolutionizing the dry cleaning industry. ZIPS originated in the Baltimore-Washington metro area in 1996, and has since grown to represent the largest chain of retail dry cleaners in the area. Today, ZIPS operates 26 stores and continues to expand. ZIPS possesses an innovative business concept that offers any garment be cleaned for the one low price of $1.99 and same day pick up. Combined, these elements allow ZIPS to offer dry cleaning services for less than half the price of the industry’s average and also to consistently outperform successful independent operators. ZIPS manages to offer such superior and inexpensive dry cleaning services due to its innovative and efficient technology-based operating system which gives ZIPS a distinct edge over its competitors.
Dry cleaning services represent an staggering $8 billion industry that is expected to grow an average of 4% per year over the next several years. With its leading one price/high volume service, ZIPS offers an exciting franchise opportunity. Franchisees benefit from ZIPS’ superior operating system and popular business model as ZIPS seeks a dominant role in the dry cleaning industry.
| |
Operating Units |
12/31/2008 |
12/31/2009 |
12/31/2010 |
|---|
| | Franchised |
5 |
6 |
12 |
| | % Change | -- |
20.0% |
100.0% |
| | Company-Owned |
11 |
14 |
16 |
| | % Change | -- |
27.3% |
14.3% |
| | Total |
16 |
20 |
28 |
| | % Change | -- |
25.0% |
40.0% |
| | Franchised as % of Total |
31.3% |
30.0% |
42.9% |
Investment Required
The fee for a ZIPS Dry Cleaners franchise is $50,000. The fee for additional franchises is $30,000.
ZIPS Dry Cleaners provides the following range of investments required to open your initial franchise. The range assumes that all items are paid for in cash. To the extent that you choose to finance any of these expense items, your front-end investment could be substantially reduced.
| |
Item | Established Low Range | Established High Range |
| | Development Fee | $10,000 | $10,000 |
| | Franchise Fee | $30,000 | $50,000 |
| | Grand Opening Advertising Fee |
$10,000 |
$10,000 |
| | Utility Deposits | $0 | $5,000 |
| | Leasehold Improvements |
$120,000 |
$170,000 |
| | Furnishings, Fixtures, Marketing Materials, Supplies and Other Branded Items | $25,000 |
$30,000 |
| | Insurance | $2,500 |
$4,000 |
| | Construction Management Services | $0 |
$5,000 |
| | Signage | $8,000 |
$15,000 |
| |
POS System | $26,000 |
$29,500 |
| | Software |
$6,500 |
$6,500 |
| | Office Equipment and Supplies | $1,200 |
$1,500 |
| | Dry Cleaning and Laundry Production Equipment | $325,000 | $375,000 |
| | Initial Inventory |
$10,000 |
$11,500 |
| |
Expenses While Training | $500 | $5,000 |
| | Licenses and Permits | $1,200 | $10,000 |
| | Professional Fees | $250 | $10,000 |
| | Dues and Subscriptions | $0 | $500 |
| |
Additional Funds (3 Months) |
$30,000 |
$40,000 |
| |
Total Initial Investment |
$596,150 |
$778,500 |
Ongoing Expenses
ZIPS Dry Cleanersfranchisees pay royalty fees equal to 6% of gross sales, a marketing fund contribution equal to a maximum of 5% of gross sales, and required local store marketing expenditures equal to 4% of gross sales.
What You Get—Training and Support
Prior to opening a new franchised location, ZIPS will provide support with determining a non-exclusive territory, assist in site selection, approve building plans and inspect the franchised location. ZIPS also orchestrates grand opening advertising 30 days before and 60 days after the scheduled opening for the franchised business. Prior to opening, franchisees and one other employee must attend a training program consisting of classroom and on-site instruction that lasts approximately six weeks. Some topics covered in the training include customer service, ZIPS proprietary technology (ZIPSsoft), machine operations, dry cleaning basics, administration, advertising and financing.
Following the successful opening of a ZIPS franchised location, ZIPS continues to provide periodic advice and consultation regarding new developments, techniques and improvements in dry cleaning, laundry service, business design, pricing, management, promotional material and sales. ZIPS also offers occasional ongoing training programs and seminars for the benefit of franchisees. Additionally, ZIPS maintains a franchise-wide website, conducts inspections of the franchised business and approves local advertising and promotional guidelines for franchisees.
Territory
ZIPS Dry Cleaners does not grant exclusive territories.
Note: The tables and information regarding the number of operating units, investment required, on-going expenses, training and territory grants were taken from the company’s 2011 FDD. The 2011 write-ups will be incorporated into the 2011 Edition of Bond’s Hottest New Franchises publication.
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