Zips Cleaners Franchise FDD, Costs & Fees (2025)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Franchisees

?

66
+
3%
3%
Investment required

?

$163,000 - $1,175,000
Revenue (AUV)

?

$948,000
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Initial franchise fee

?

$30,000
Royalty fees

?

6.00%
+
5.00%
Operating Profit

?

26.3%

Pro
Franchisees

?

66
+
3%
3%
Investment required

?

$163,000 - $1,175,000
Franchise fee

?

$30,000
Royalty fees

?

6.00%
+
5.00%
Revenue (AUV)

?

$948,000
Undisclosed
Pro
+
n.a.
+
xx%
-xx%
n.a.
Operating Profit

?

26.3%

Pro

ZIPS Cleaners: Redefining Affordability and Speed in Garment Care

ZIPS Cleaners has earned its place as a leading franchise in the garment care industry, celebrated for delivering quick, high-quality services at an affordable price. Founded in 2002, the brand was born from the collaboration of eight top dry cleaners from the Baltimore-Washington Metro Area, who united under one banner to reshape the dry cleaning experience. The company’s corporate headquarters remains based in Maryland, USA.

Not long after its founding, ZIPS launched its franchise program, providing opportunities for entrepreneurs to become part of its growing brand.

ZIPS Cleaners offers a full suite of services, including same-day dry cleaning backed by a "in by 9, out by 5" guarantee, professional laundering and pressing, Wash N Fold laundry service, alterations, and the cleaning of household items such as linens and comforters.

What distinguishes ZIPS from traditional dry cleaners is its simple, flat-rate pricing model, offering one low price for any dry-cleaned item. This commitment to price transparency, paired with fast service, has made ZIPS a preferred choice for customers seeking both convenience and value.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Zips Cleaners offers 2 types of franchises:

Type of Expenditure Amount
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

Franchise Disclosure Document

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Competitors

Franchise
Franchisees
Growth
Initial fee
Investment
Revenue
Gross Profit
Operating Profit
Industry

66

+
3%
3%
No growth
New

$30,000

$163,000

-

$1,175,000

n.a.

$948,000

Pro

90.4%

Pro

26.3%

Pro

Business Services

Training

Zips Cleaners provides a comprehensive training program to its franchisees to ensure successful business operations:

  1. Initial Training Program
    Franchisees, their Operating Principals, Store Managers, or designated 10% Owners must complete a 160-hour initial training program, which includes classroom and on-the-job training over a minimum of four weeks. Zips does not charge for up to two attendees but requires the franchisee to cover travel, living, and incidental expenses.
  2. Certification Requirement
    Franchisees must ensure that at least one trained and certified individual is always on-site at the Franchised Business. Certification through the initial training program is mandatory before the store can open.
  3. Ongoing Training
    Zips may require franchisees, Store Managers, and other key personnel to attend up to four days of ongoing training per year, designed to keep them updated on operations, systems, and improvements.
  4. Additional Training Programs
    Zips reserves the right to require additional or remedial training based on performance needs or new system-wide updates. Franchisees are responsible for paying any associated training fees and all expenses incurred during attendance.
  5. Franchisee-Led Employee Training
    Franchisees are fully responsible for training their own employees according to Zips' System Standards and must certify that each employee has completed all required training.

Territory Protection

Zips Cleaners provides a form of limited territory protection to its franchisees through what they call a "Protected Area." After the franchised location is accepted, the franchisee is granted the exclusive right to operate a Zips Cleaners business at that location, and Zips agrees not to open another franchised unit within the Protected Area during the agreement term.

The Protected Area can be defined by a radius (typically around two miles), metes and bounds, or a group of zip codes. However, Zips Cleaners retains significant rights even within the Protected Area.

They can license others to operate in captive market locations such as hotels, award licenses to third parties for different brands, and use various channels of distribution like online sales. Additionally, there are no minimum sales quotas required to maintain the Protected Area, but if a franchisee defaults under the agreement, they risk losing their territorial rights.

Number of units

2024
Franchised units

64

63

66

Company-owned units

3

3

3

Total units

67

66

69

Competitors

SPEED QUEEN

Investment required
$1,164,000
-
$1,940,000
Franchisees
12
+
140%
140%

WaveMax Laundry

Investment required
$351,000
-
$1,515,000
Franchisees
50
+
79%
79%

Tide Cleaners

Investment required
$698,000
-
$2,517,000
Franchisees
223
+
11%
11%

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