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Breakdown

Lapels franchise unit economics

Lapels franchisees run dry cleaning and laundry businesses through Plants, Satellite Stores, Lapels Delivers pick-up and delivery routes and Laundromats.

Plants reporting34

Average annual sales$422,994

Total investment$40,900–$1,711,738

Lapels franchise at a glance

The 2026 FDD publishes 2025 annual sales for 34 Plants and 28 Satellite Stores, controllable expenses for 9 owner groups, and monthly results for the first two franchised Laundromats.

Lapels reports that 34 Plants open at least one year averaged $422,994 of annual sales in 2025, with a median of $388,992, according to Item 19 of Lapels’ 2026 FDD, issued 2 April 2026. The 34 in that group are 97%* of Lapels’ 35 Plants. Fees paid to Lapels come to about 10.84%* of sales.

A Lapels franchise costs $40,900 to $78,600 to open as a Lapels Delivers route, $113,065 to $345,650 as a Satellite Store, $535,930 to $796,742 as a Plant and $907,905 to $1,711,738 as a Laundromat.
Lapels charges a royalty of 6% of gross revenue and a brand development fee of 2%, both paid weekly, plus a technology fee of up to $1,000 a month, and requires local marketing of at least 1% of gross revenue.
Lapels reports that 28 Satellite Stores open at least one year averaged $325,839 of annual sales in 2025, with a median of $301,401.
Lapels reports average controllable expenses for 9 owner groups with 9 Plants and 9 Satellite Stores: payroll was 40.81% of sales and net controllable income 44.59%, before rent and other costs the table leaves out.
Lapels reports that its two franchised Laundromats averaged $40,713 of monthly store revenue from December 2025 to February 2026, and that each reached break-even in 3 months.
A Lapels franchise is one of 83 franchised outlets at the end of 2025, the same count as at the start of 2023; there were no company-owned outlets and 12 signed agreements not yet open.

These figures come from Lapels's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors.

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By Scott Engler · Averan Advisors · Source: Next Step Franchising, LLC, 2026 Franchise Disclosure Document (FDD) · Updated 16 October 2026

The headline average is for Plants open at least one year. Item 19 covers 34 of 35 Plants, 28 of 34 Satellite Stores and 3 of 12 Lapels Delivers routes. It prints sales figures for Plants and Satellite Stores, but no separate sales figure for the routes.
Fewer than half of each group sold more than its average. 14 of 34 Plants, 41.2%*, and 10 of 28 Satellite Stores, 35.7%*, exceeded their group’s average. Each group’s median is below its average.
Net controllable income averaged 44.59% of sales across 9 owner groups. The table deducts payroll, cost of goods, insurance, marketing, maintenance and utilities. It leaves out rent, the royalty, professional fees, interest, depreciation and owner pay unless the owner works as a manager.
Payroll, including taxes and benefits, averaged 40.81% of sales. It is the largest line in the expense table. The median was 36.40%. Cost of goods, which covers detergents, solvents and packaging, averaged 5.72%.
Most of the cost to open is paid to the franchisor. The cover page puts $387,930 to $427,792 of a Plant’s $535,930 to $796,742 as paid to the franchisor or its affiliates, 72.4%* of the low estimate. Most of it is the Start Up Supplies and Equipment Package of $292,430 to $318,292, bought from the franchisor.

Annual sales by format

How much does a Lapels franchise make?

Item 19 Sales Metrics, 2025 annual sales, franchised Plants and Satellite Stores open at least one year, 2026 FDD *Averan calculation
Measure	Plants	Satellite Stores
Highest	$988,972	$742,913
Average	$422,994	$325,839
Median	$388,992	$301,401
Lowest	$147,833	$42,464
Locations reporting	34	28
Above the average	14, or 41.2%*	10, or 35.7%*

Figures as printed, cents dropped. The FDD calls these Gross Sales in its note and counts outlets that exceeded Average Annual Net Sales. Item 19 leaves out 1 Plant, 6 Satellite Stores and 9 Lapels Delivers routes whose data was not available or that had not operated for at least one year.

The 34 Plants averaged $422,994 of annual sales in 2025. The median was $388,992. The highest Plant had $988,972 and the lowest $147,833. A Plant processes dry cleaning on its own premises and may also process for Satellite Stores.

The 28 Satellite Stores averaged $325,839. The median was $301,401, the highest $742,913 and the lowest $42,464. A Satellite Store is a drop-off and pick-up counter; its processing is done by a Lapels Plant or an approved wholesaler.

Item 19 also charts monthly sales, visits, visit price and new clients for 65 outlets. The 65 are the 34 Plants, 28 Satellite Stores and 3 Lapels Delivers routes. The charts are printed without data labels. A table lists the outlets at or above the average visit price each month, from 30 (46%) in July and December to 35 (54%) in November.

Item 19 describes these as historic results for outlets in operation in calendar year 2025 and open at least one year at December 31, 2025. The FDD reports that some outlets earned these amounts and that a new owner’s results may differ.

Controllable expenses

Controllable expenses, 9 owner groups, 2025

Item 19 Average and Median Controllable Expenses, as a percentage of sales, 9 owner groups with 9 Plants and 9 Satellite Stores, 2026 FDD
Measure	Payroll incl. taxes and benefits	Cost of goods	Insurance	Marketing	Maintenance	Utilities	Net controllable income
Average	40.81%	5.72%	1.68%	1.71%	2.41%	3.08%	44.59%
Median	36.40%	5.52%	2.10%	1.05%	2.03%	2.72%	50.18%

Figures as printed. Self-reported by franchisees in a standard format. The table leaves out 26 Plants, 25 Satellite Stores and 12 Lapels Delivers routes for which data was not available. The median net controllable income is 100% less the sum of the median lines, not the median owner’s result.

Net controllable income averaged 44.59% of sales. 5 of the 9 owner groups exceeded that average, and 4 of 9 exceeded the median of 50.18%. The 9 groups together operate 9 Plants and 9 Satellite Stores.

The table leaves out costs every owner pays. Item 19 lists rent, real estate taxes, common area charges, legal and accounting fees, interest, taxes, depreciation and amortization as costs not included. The table also has no royalty line; the royalty is 6% of gross revenue.

Marketing averaged 1.71% of sales. Item 19 says this line includes each outlet’s contributions to the Advertising and Development Fund. Item 6 sets the brand development fee at 2% of gross revenue and local marketing at a minimum of 1%.

Payroll averaged 40.81% and cost of goods 5.72%. Payroll includes salaries or wages, benefits and payroll taxes. Cost of goods covers detergents, solvents, spotting agents, hangers and poly, and excludes labor.

Laundromat results

Monthly store revenue, the two franchised Laundromats

Item 19 Laundromat ramp-up tables, monthly store revenue from opening to February 2026, 2026 FDD
Month	Location A (opened August 2025)	Location B (opened November 2025)
Aug-25	$9,961	Not open
Sep-25	$36,591	Not open
Oct-25	$42,645	Not open
Nov-25	$47,633	$16,112
Dec-25	$48,189	$29,603
Jan-26	$48,686	$32,461
Feb-26	$47,839	$37,500

Figures as printed. Store revenue is total monthly gross revenue from all services. Read from image tables on page 50.

Item 19 reports the two franchised Laundromats separately from the dry cleaning outlets. Location A opened in August 2025 and Location B in November 2025. The FDD says results from the first months of operation may not reflect a mature Laundromat.

From December 1, 2025 to February 28, 2026, monthly store revenue averaged $40,713. Location A averaged $48,238 and Location B $33,188. Washer turns per machine per day were 3.5 and 4.1, an average of 3.8.

Self-service laundry was 75.8% of revenue on average over the same period. Wash and fold was 10.4%, dry cleaning 10.1%, commercial work 3.3% and products 0.4%. Location B took 19.6% from wash and fold against 4.2% at Location A.

Each Laundromat reached break-even in 3 months. Location A in November 2025 and Location B in February 2026. The FDD defines break-even as the month operating revenue equals operating expenses, leaving out debt service, owner pay and the initial investment.

Brand charges

Recurring charges from Item 6, applied to the Plant average of $422,994 *Averan calculation
Charge	Rate	At $422,994 *
Royalty	6% of gross revenue, paid every Monday	$25,380
Brand development fee	2% of gross revenue, paid every Monday	$8,460
Technology fee	Up to $1,000 a month	$12,000
Local marketing (spent by the owner)	At least 1% of gross revenue a year	$4,230
Royalty, brand development and technology fee	8%* plus up to $12,000 a year	$45,840, or 10.84%*

Royalty, brand development fee and technology fee are paid to the franchisor, and part of the technology fee to third parties. With local marketing the total is 11.84%*. At the Satellite Store average of $325,839, the three charges come to 11.68%*.

The royalty is 6% of gross revenue and the brand development fee is 2%, both paid every Monday for the week ending the prior Sunday. The franchisor may debit the owner’s bank account for them and may estimate the amount if reports are not provided.

The technology fee is up to $1,000 a month. It covers point-of-sale licenses and, where used, route software. Item 6 says most locations need two point-of-sale licenses, typically costing less than $150 per month each, and that a Laundromat’s current license fee is $400 per month.

Local marketing is a minimum of 1% of gross revenue a year. If the owner does not spend it, the franchisor may spend it on the owner’s behalf. Item 6 sets no minimum royalty.

Other charges include a transfer fee of 80% of the then-current initial franchise fee and a successor fee of 25% at renewal. The transfer fee may be waived if the buyer signs a new franchise agreement and pays an initial franchise fee. There is also a $500 monthly fee for late financial reports, refresher training at $400 a day, and a store remodel of $2,000 to $10,000 no more often than every five years.

Cost to open

Item 7 estimated initial investment by model, 2026 FDD
Model	Initial franchise fee	Start Up Supplies and Equipment Package	Total investment	Paid to the franchisor or affiliates
Lapels Delivers	$27,000	$3,800–$5,100	$40,900–$78,600	$36,800–$38,100
Satellite Store	$30,000	$26,325–$131,250	$113,065–$345,650	$79,125–$191,750
Plant	$60,000	$292,430–$318,292	$535,930–$796,742	$387,930–$427,792
Laundromat	$55,000	$473,405–$777,088	$907,905–$1,711,738	$569,405–$956,488

Totals cover the first three months of operation and exclude real estate purchase. The paid-to-franchisor column is from the cover page.

A Plant costs $535,930 to $796,742 to open. The main lines are the $60,000 franchise fee, the $292,430 to $318,292 equipment package, leasehold improvements of $50,000 to $200,000, equipment installation of $50,000, freight of $13,000 to $20,000, a $12,000 grand opening marketing fee, and $20,000 to $40,000 of additional funds for three months. The low estimate assumes the landlord delivers ready space or a build-out allowance.

The equipment package is bought from the franchisor, which is the only approved supplier. It is refundable, less a 20% administrative fee, until purchase orders are submitted, about one week after the franchisor receives payment. The grand opening marketing fee is refundable less 20% up to twelve weeks before the scheduled opening.

A Laundromat costs $907,905 to $1,711,738. It includes leasehold improvements of $250,000 to $550,000, the $473,405 to $777,088 equipment package and up to $60,000 of sales tax paid to the franchisor. A Lapels Delivers route costs $40,900 to $78,600 and runs from a delivery van.

An owner must open within 240 days of signing. The territory is set after site approval and typically covers about 20,000 residents or a United States zip code. To buy additional stores, an owner needs at least 20% liquid cash and 50% outside collateral on the total start-up cost.

Locations

Locations, 2023 to 2025

Item 20 franchised outlets, 2023 to 2025, 2026 FDD *Averan calculation
Year	Start	Opened	Ceased, other reasons	End	Transfers
2023	83	2	2	83	8
2024	83	2	4	81	0
2025	81	3	1	83	5
2023 to 2025*	83	7	7	83	13

Item 20 reports no company-owned outlets in any of the three years. Transfers are sales from one franchisee to a new owner.

Lapels had 83 franchised outlets at the end of 2025, the same as at the start of 2023. Seven opened and seven left over the three years. All seven departures are in the ceased-for-other-reasons column; terminations, non-renewals and reacquisitions were zero in every year.

Twelve franchise agreements were signed but not yet open at December 31, 2025. Four are in Texas, two each in Arizona, Nebraska and North Carolina, and one each in Florida and Tennessee. The franchisor projects 10 new franchised outlets in 2026.

Massachusetts has the most outlets, 28 at the end of 2025. Item 2 says a company managed by the franchisor’s chief executive, MA Green Cleaning, LLC, owns 6 Lapels franchises in Massachusetts.

The franchisor is Next Step Franchising, LLC, of Naples, Florida. It has offered Lapels franchises since March 2018; its predecessor offered them from September 2000. Its parent also owns the franchisor of Martinizing Cleaners, and an affiliate, GreenEarth Cleaning, LLC, licenses the cleaning solution Plants must use for $2,500.

Questions we get asked

Questions owners ask

How much does it cost to open a Lapels franchise?

It depends on the model. Item 7 puts a Lapels Delivers route at $40,900 to $78,600, a Satellite Store at $113,065 to $345,650, a Plant at $535,930 to $796,742 and a Laundromat at $907,905 to $1,711,738. Initial franchise fees are $27,000, $30,000, $60,000 and $55,000.

What fees does a Lapels franchisee pay?

A royalty of 6% of gross revenue and a brand development fee of 2%, both paid weekly, and a technology fee of up to $1,000 a month. Owners must also spend at least 1% of gross revenue on local marketing. At the Plant average, the royalty, brand development fee and full technology fee come to 10.84%* of sales.

How much does a Lapels Plant make?

Item 19 reports that 34 Plants open at least one year averaged $422,994 of annual sales in 2025, with a median of $388,992. 14 of the 34 exceeded the average. The 28 reporting Satellite Stores averaged $325,839.

Does the Lapels FDD show profit?

It shows controllable expenses for 9 owner groups that together operate 9 Plants and 9 Satellite Stores. Net controllable income averaged 44.59% of sales, with a median of 50.18%. The figure is before rent, the royalty, professional fees, interest, depreciation and owner pay.

How many Lapels locations are there?

Item 20 lists 83 franchised outlets and no company-owned outlets at December 31, 2025. The count was 83 at the start of 2023 and 81 at the end of 2024. Twelve signed agreements had not yet opened.

What does the FDD say about Lapels Laundromats?

Two franchised Laundromats opened in August and November 2025. From December 2025 to February 2026 their monthly store revenue averaged $40,713, and each reached break-even, as the FDD defines it, in 3 months. The FDD says these early results may not reflect a mature Laundromat.

Questions worth putting to Lapels

These are questions the filing leaves open. An owner or a buyer can put them to the franchisor directly.

Is the revenue in Item 19 gross sales or collected revenue, and how many locations sit below the average?
Which factors does Lapels see in its highest-selling locations, such as territory, years open and staffing?
How long does a new location take to reach the average you publish, and what does the build-up look like month by month?
At what level of sales do the minimum charges stop applying and the percentage take over?
How many Lapels locations closed, were sold, or changed hands last year, and why?

Part of our Home and Commercial Services guide · Averan Franchise

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Where this sits

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Questions owners ask next

The figures above raise these, and each one is answered on its own page.

At what level of sales does a minimum fee stop costing me more than the percentage?It works out the sales level where a minimum fee stops applying.
How much cash do I fund before a new location covers its own costs?It builds a 13-week forecast for the months before break-even.
What does this location earn on the money I put into it?It works out the payback period and cash-on-cash return for one unit.
How much of Item 19 can I rely on?It explains what an Item 19 financial performance representation tells you and what it leaves out.

Scott Engler

Founder & Principal, Averan Advisors

Averan provides bookkeeping, controller, and fractional CFO support for franchise owners and has Certified QuickBooks ProAdvisors on the team. More about the team →

Where these figures come from

Every figure here comes from Next Step Franchising, LLC’s 2026 FDD and is unaudited by us. We are unaffiliated with the brand. Calculations of our own are labeled where they appear. The figures describe past performance at other businesses and are not a projection of yours. This page is an educational summary. It is not an offer to sell a franchise, and it is not financial, legal or tax advice. Lapels is a trademark of its owner. How Averan reads a Franchise Disclosure Document.

These figures come from the brand's disclosure. They are not a forecast, an offer to sell a franchise or advice. Source: Next Step Franchising, LLC, 2026 Franchise Disclosure Document, issued 2 April 2026.