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Breakdown

ZIPS Cleaners franchise unit economics

ZIPS Cleaners franchisees run flat-price dry cleaning and laundry stores with same-day service, starting with a Plant Store that has its own processing plant and adding Drop Stores that send garments to it.

Plant Stores reporting31

Average revenue$1,123,997

Total investment$867,700–$1,287,000

ZIPS Cleaners franchise at a glance

The 2026 FDD reports 2025 revenue and store-level costs for 31 franchised Plant Stores and, separately, 12 franchised Drop Stores.

ZIPS Cleaners’ 31 reporting franchised Plant Stores averaged $1,123,997 of revenue in 2025, with a median of $1,052,703, according to Item 19 of ZIPS Cleaners’ 2026 FDD, issued 7 April 2026. Fees paid to ZIPS Cleaners come to about 10.59%* of sales. A ZIPS Cleaners franchise costs $867,700 to $1,287,000 to open.

A ZIPS Cleaners Plant Store costs $867,700 to $1,287,000 to open, including a $40,000 initial franchise fee and a $7,500 software license fee, according to the brand’s 2026 FDD.
ZIPS Cleaners charges a royalty of 6% of Royalty Net Sales, a total marketing obligation of 5% of Royalty Net Sales and a $550 monthly software fee.
On Averan’s reading, ZIPS Cleaners’ royalty, national and regional marketing funds and software fee come to 10.59%* of sales at the Plant Store average.
ZIPS Cleaners reported 52 franchised and 20 affiliate-owned locations at the end of 2025, 72 in all.
At the average ZIPS Cleaners Plant Store, labor took 39.0%, rent 11.1% and production supplies 8.9% of revenue.
ZIPS Cleaners Plant Stores reported average income before general and administrative expenses of $391,141, or 34.8% of revenue, before royalty and marketing fees.

These figures come from ZIPS Cleaners's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors. The 10.59% total fee share is an Averan calculation: 6% royalty plus 4% national and regional marketing funds plus $6,600 a year of software fees, divided by the $1,123,997 Plant Store average.

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

The Item 19 bottom line comes before the brand’s own fees. Income before general and administrative expenses averaged $391,141 at Plant Stores. Royalty, marketing and software at the average come to $130,240*, leaving $260,901* before insurance, owner pay and debt service.
Eight of the 31 Plant Stores sold more than the average. That is 25.8% of the group. The median Plant Store sold $1,052,703, which is $71,294* below the $1,123,997 average.
Labor is the largest cost line at 39.0% of Plant Store revenue. The average Plant Store spent $438,031 on labor, which includes manager pay and benefits. Rent took 11.1%, or $125,090, and production supplies 8.9%, or $99,910.
Drop Stores report their own figures, at about half the revenue. The 12 reporting franchised Drop Stores averaged $499,281 of revenue, with a median of $520,292, and income before general and administrative expenses of 35.4%. Production supplies take 22.6% of Drop Store revenue against 8.9% at Plant Stores.
Twenty franchised locations moved to affiliate ownership in 2025. Franchised locations fell from 70 to 52 while the total stayed at 72. The FDD says the units moved because of a change of ownership at one of the franchisor’s parent entities.

How much it makes

How much does a ZIPS Cleaners franchise make?

Franchised ZIPS Cleaners Plant Stores, 2025, 31 stores open all year, as the brand reported it
Line	High	Low	Median	Average	% of revenue	Stores above average
Revenue	$2,378,792	$379,088	$1,052,703	$1,123,997	100.0%	8
Production supplies	$237,152	$5,094	$89,035	$99,910	8.9%	7
Gross margin	$2,141,640	$337,721	$982,218	$1,026,686	91.3%	8
Labor	$975,708	$153,874	$402,879	$438,031	39.0%	6
Rent	$262,140	$69,092	$106,408	$125,090	11.1%	6
Repairs and maintenance	$55,892	$4,060	$22,934	$23,139	2.1%	9
Utilities	$119,382	$20,423	$43,982	$49,285	4.4%	7
Income before general and administrative expenses	$944,854	($32,553)	$361,555	$391,141	34.8%	9

Source: ZIPS Franchising, LLC 2026 FDD, Item 19, page 47 of the FDD. Compiled from unaudited franchisee financial statements. The note under the table gives the highest 2025 Plant Store revenue as $2,964,972, not the $2,378,792 shown in the High column.

The 31 reporting franchised Plant Stores averaged $1,123,997 of revenue in 2025. The median store sold $1,052,703, and 8 of the 31 stores, or 25.8%, sold more than the average. All 31 were open for the full year, in Florida, Illinois, Indiana, Maryland, Pennsylvania, Texas and Virginia.

Five Plant Stores are left out of the figures. One was a corporate location sold to franchisees in December 2025, and four did not provide financial detail for the whole year. The FDD says obtaining timely financials from franchisees has been difficult.

The bottom line is income before general and administrative expenses, at 34.8% of revenue on average. It is gross margin less labor, rent, repairs and maintenance, and utilities. The FDD lists costs it leaves out, including royalty and advertising fees, insurance, debt service, owner salary, additional benefits and professional services. The lowest Plant Store reported a loss of $32,553 at this line.

The brand’s fees at the Plant Store average come to $119,000*. That is $67,440* of royalty, $44,960* to the national and regional marketing funds and $6,600* of software fees. The owner also spends $11,240* on local store marketing. Deducted from $391,141, the fees and local store marketing leave $260,901*, or 23.21%* of revenue, before the other costs the FDD lists. This applies fee rates to averages, so no single store’s result is shown.

Plant and Drop Stores

Revenue spread and Drop Stores, 2025

Franchised ZIPS Cleaners Drop Stores, 2025, 12 stores open all year, as the brand reported it
Line	High	Low	Median	Average	% of revenue	Stores above average
Revenue	$967,755	$249,283	$520,292	$499,281	100.0%	7
Production supplies	$293,319	$6,279	$90,162	$112,650	22.6%	5
Gross margin	$674,436	$149,698	$353,845	$386,632	77.4%	5
Labor	$231,946	$56,799	$107,383	$116,135	23.3%	5
Rent	$176,853	$0	$69,888	$78,545	15.7%	4
Repairs and maintenance	$14,181	$419	$1,903	$4,918	1.0%	5
Utilities	$22,402	$1,133	$7,706	$10,121	2.0%	5
Income before general and administrative expenses	$397,683	($4,696)	$155,461	$176,913	35.4%	5

Source: ZIPS Franchising, LLC 2026 FDD, Item 19, page 48 of the FDD. One Drop Store sold by the franchisor in December 2025 and one that did not report the full year are excluded.

ZIPS Cleaners does not split its stores into quartiles or bands. For each store format it publishes the high, low, median and average of each line, with the share and number of stores above the average.

Plant Store revenue ran from $379,088 to $2,378,792 in the table. The note under the table puts the highest Plant Store at $2,964,972. The median of $1,052,703 sits below the $1,123,997 average, and 23 of the 31 stores sold less than the average.

The 12 reporting franchised Drop Stores averaged $499,281 of revenue. Their median of $520,292 is above the average, and 7 of the 12, or 58.3%, sold more than the average. Drop Stores do not process garments on site.

Drop Store production supplies take 22.6% of revenue, and labor 23.3%. At Plant Stores the same lines take 8.9% and 39.0%. The FDD does not say how Drop Stores pay for processing at a plant, so the reason for the difference is not shown in the filing.

Fees paid to the brand at the Drop Store average come to $56,528*, or 11.32%* of revenue. That is the 6% royalty and the 4% national and regional marketing funds on $499,281 plus $6,600 of software fees. The 1% local store marketing is spent by the owner. Drop Store income before general and administrative expenses averaged $176,913.

Brand charges

ZIPS Cleaners ongoing fees, with dollars at the 2025 Plant Store average of $1,123,997 *Averan calculation
Fee	Rate as filed	At Plant Store average
Royalty	6% of Royalty Net Sales	$67,440*
Total marketing obligation	5% of Royalty Net Sales	$56,200*
National Marketing Fund (inside the 5%)	Up to 4%; currently 2%	Included above
Regional Marketing Fund or Co-op (inside the 5%)	Up to 3% for the fund; currently 2%	Included above
Local store marketing (inside the 5%)	Currently 1%	Included above
ZIPSsoft software license and service fee	$550 a month	$6,600*
Paid to the brand, excluding the 1% local store marketing	10% of sales plus $550 a month	$119,000* (10.59%*)

Source: Item 6, pages 6 to 10 of the FDD. A Regional Co-op may vote to raise contributions so the total marketing obligation exceeds 5%. Dollar figures and the percentage marked * are Averan calculations.

The royalty is 6% of Royalty Net Sales, paid weekly. Royalty Net Sales covers all revenue of the business, less sales tax, good-faith refunds and sales of equipment.

The total marketing obligation is 5% of Royalty Net Sales. It is divided among the National Marketing Fund, currently 2%, a Regional Marketing Fund or Co-op, currently 2%, and local store marketing, currently 1%. If a Regional Co-op is set up, it sets its own rate and may take the total above 5% by majority vote.

The initial franchise fee is $40,000 for the first store and $20,000 for each later store. The ZIPSsoft software license adds $7,500 at signing. The FDD says the initial fees paid in the last fiscal year were all $15,000, the highest and the lowest. Qualified veterans receive a 20% reduction, and a conversion of an existing cleaner costs $10,000.

Other charges apply in set cases. These include $500 a day for additional training or assistance, a $500 late fee, a $10,000 transfer fee, a $10,000 renewal fee and non-compliance fees of $500 to $1,000.

Cost to open

Estimated initial investment, ZIPS Cleaners Plant Store (Item 7, Table A)
Expenditure	Low	High
Initial franchise fee	$20,000	$40,000
New store marketing	$15,000	$25,000
Real property and rent	$12,000	$24,000
Utility deposits	$2,000	$6,000
Leasehold improvements	$195,000	$290,000
Architectural and engineering fees	$10,000	$35,000
Furnishings, fixtures, marketing materials and branded items	$28,000	$35,000
Insurance	$3,000	$7,000
Signage	$13,000	$20,000
Point of sale system and technical equipment	$35,000	$45,000
Software (ZIPSsoft license)	$7,500	$7,500
Office equipment and supplies	$1,200	$4,000
Dry cleaning and laundry production equipment and installation	$400,000	$475,000
Initial production supplies	$24,000	$30,000
Training	$500	$30,000
Licenses, permits and professional fees	$1,500	$13,500
Additional operating funds, 6 months	$100,000	$200,000
Total	$867,700	$1,287,000

Source: Item 7, Table A, pages 12 to 14 of the FDD. The initial franchise fee line runs from $20,000 for a later store to $40,000 for the first.

A ZIPS Cleaners Plant Store costs $867,700 to $1,287,000 to open. Production equipment and its installation is the largest line, at $400,000 to $475,000, followed by leasehold improvements at $195,000 to $290,000. The cover page says $47,500 of the total is paid to the franchisor or its affiliates.

A Drop Store costs $226,200 to $432,000, and a 24/7 Drop Facility $405,700 to $721,500. Both are open to franchisees who already own a Plant Store. The 24/7 range includes an automated storage and kiosk system. The Item 7 table for the 24/7 format prints a high total of $721,000, while its lines and the cover page give $721,500.

The FDD estimates 8 to 15 months from site acceptance to opening. A store must open within 18 months of signing the franchise agreement, or the franchisor will terminate the agreement. A Plant Store typically uses 3,000 to 3,500 square feet.

A Development Agreement for two stores costs $23,000 to $25,000 up front. That is a $10,000 development fee per store, credited against each initial franchise fee, plus working capital. The territory is a Protected Area, which may be a radius of about 2 miles, a boundary description or a group of zip codes.

Locations

Locations, 2023 to 2025

ZIPS Cleaners outlets, 2023 to 2025 (Item 20)
	2023	2024	2025
Franchised at start of year	63	66	70
Opened	5	4	4
Terminated	0	0	2
Non-renewed	0	0	0
Reacquired by franchisor	0	0	0
Ceased operations, other reasons	2	0	20
Franchised at end of year	66	70	52
Company or affiliate-owned at end of year	3	2	20
Total at end of year	69	72	72
Transfers to new franchisees	0	1	2

Source: Item 20, Tables 1 to 4, pages 50 to 53 of the FDD. At the end of 2025, 8 franchise agreements were signed for outlets not yet open.

Franchised locations fell from 70 to 52 in 2025, and affiliate-owned locations rose from 2 to 20. The total stayed at 72. The FDD says units were moved from franchised to affiliate-owned because of a change of ownership at one of the franchisor’s parent entities. The note gives 21 units; the tables show 20 franchised outlets ceasing for other reasons and 20 affiliate-owned outlets opened.

Most of the move was in Maryland, Virginia and the District of Columbia. In 2025, 10 Maryland, 7 Virginia and 2 District of Columbia franchised outlets ceased for other reasons, and the affiliate-owned table shows 10, 7 and 2 outlets opened in those places. Two affiliate-owned Maryland outlets closed in the year.

Two franchised outlets were terminated in 2025, one in Ohio and one in Pennsylvania. Over the three years, 13 franchised outlets opened. The franchisor itself operates no stores; the 20 affiliate-owned stores are run by officers or by owners of the parent, Value Drycleaners of America, LLC.

The FDD projects 3 new franchised and 2 new company or affiliate-owned openings in 2026. It also says the franchisor has signed confidentiality clauses with current or former franchisees in the last three fiscal years that restrict what they can say about their experience.

Questions we get asked

Questions owners ask

How much does it cost to open a ZIPS Cleaners franchise?

The 2026 FDD puts a Plant Store at $867,700 to $1,287,000, including a $40,000 initial franchise fee and a $7,500 software license fee. A franchisee’s first store must be a Plant Store. A Drop Store costs $226,200 to $432,000 and a 24/7 Drop Facility $405,700 to $721,500.

What fees does a ZIPS Cleaners franchisee pay?

A royalty of 6% of Royalty Net Sales, a total marketing obligation of 5% split among national, regional and local marketing, and a $550 monthly software fee. At the 2025 Plant Store average of $1,123,997 the royalty, national and regional marketing funds and software fee paid to the brand come to $119,000*, or 10.59%* of revenue. The 1% local store marketing is spent by the owner.

How much revenue does a ZIPS Cleaners store make?

The 31 franchised Plant Stores open all of 2025 averaged $1,123,997, with a median of $1,052,703. The 12 reporting franchised Drop Stores averaged $499,281, with a median of $520,292. The figures come from unaudited franchisee financial statements.

Does the ZIPS Cleaners FDD show profit?

It shows income before general and administrative expenses: 34.8% of revenue, or $391,141, at the average Plant Store, and 35.4% at the average Drop Store. Royalty, marketing fees, insurance, debt service and owner salary are not deducted in that figure.

How many ZIPS Cleaners locations are there?

At the end of 2025 there were 72: 52 franchised and 20 affiliate-owned. The FDD says 20 or more franchised units moved to affiliate ownership in 2025 after a change of ownership at a parent entity. Eight franchise agreements were signed for stores not yet open.

How long does it take to open a ZIPS Cleaners store?

The FDD estimates 8 to 15 months from site acceptance to opening. The store must open within 18 months of signing the franchise agreement.

Questions worth putting to ZIPS Cleaners

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 ZIPS Cleaners 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 ZIPS Cleaners 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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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

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Where these figures come from

Every figure here comes from ZIPS 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. ZIPS Cleaners 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: ZIPS Franchising, LLC, 2026 Franchise Disclosure Document, issued 7 April 2026.