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FDD Talk: The Tide Dry Cleaners Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

by Franchise Chatter on January 29, 2017

in Dry Cleaning Franchise, FDD Talk 2017: Service Franchises, Franchise Earnings

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Tide Dry Cleaners photo by westchesterbuzz

In this FDD Talk 2016 post, you’ll learn the following:

  • Section I – Background information on the Tide Dry Cleaners franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a Tide Dry Cleaners franchise, based on Item 7 of the company’s 2016 FDD
  • Section III – Presentation and analysis of Tide Dry Cleaners’ financial performance representations, based on Item 19 of the company’s 2016 FDD, including information on the:
  • 2015 average gross sales, discounts, net sales, cost of sales, labor cost and taxes, marketing, utilities, repair and maintenance, credit card fees, miscellaneous expenses, total controllable expense, net controllable income, royalty, and net controllable income less royalty for the 13 Tide Dry Cleaners Outlets that were open and operating for over 1 year as of June 30, 2016, and operated as Plant Stores that did not support 1 or more Drop Stores or Non-Traditional Stores (collectively, the “Plant Store Covered Outlets”); and the 7 Tide Dry Cleaners Outlets that were open and operating for over 1 year as of June 30, 2016, and operated as Drop Stores (the “Drop Store Covered Outlets”) (separately stated)
  • 2015 average, median, high, and low monthly net sales, net sales per customer visit, price per garment, garments per trip, monthly customer visits, and monthly discount rate for the 13 Tide Dry Cleaners Plant Store Covered Outlets, and the 7 Tide Dry Cleaners Drop Store Covered Outlets (separately stated)

Section I – Background Information

Using Tide’s Familiar Brand to Offer a New Service

Tide, which has been a household name for over 65 years, wanted to create a professional dry cleaning service. Tide Dry Cleaners was founded in 2008 by Agile Pursuits Franchising Inc., a wholly-owned subsidiary of the Proctor & Gamble company, which owns the Tide brand. Franchising officially began in 2009 and today, Tide Dry Cleaners has more than 40 locations throughout the United States.

P&G Picks Sullivan Higdon & Sink to Market Tide Dry Cleaners

In early 2016, P&G hired Sullivan Higdon & Sink (SHS) to take on the strategy, creative, media planning, and field marketing duties for Tide Dry Cleaners. Dave Walker, Tide Dry Cleaners’ Director of Brand Marketing, says that SHS will help the franchise continue to grow. SHS’s roster of brands includes AMC Theatres, Lowe’s Home Improvement, the Kansas City Chiefs, and SONIC Drive-Ins.

Recent Openings

In December 2016, Tide Dry Cleaners opened its first Central Texas location in Round Rock. Soon after, on January 21, 2017, Tide opened its second Texas location in Amarillo. Both Texas locations offer the drive-thru concierge service, as well as the 24-hour drop-off boxes. Tide also opened a location in Edina, Minneapolis in late 2016. The first Minneapolis location opened in 2015 in Apple Valley.

Standing Out From the Competition by Providing Unique Services

One of the main differences between a traditional dry cleaning service and Tide Dry Cleaners is that Tide offers several 24-hour services. All Tide Dry Cleaners locations have a 24-hour drop box where customers can drop off their clothes at any time, Monday through Saturday. All garments dropped into the drop box will be ready for customers to pick up by 5 p.m. the next day.

Some Tide Dry Cleaners locations have 24-hour lockers which can be used if a customer cannot pick up their garment during regular business hours. To use the service, customers need to call their Tide Dry Cleaners location to let the business know they can’t pick up their garment on time. The customer’s garment will then be placed inside a locker where it can be picked up at any time. Additionally, some locations have a 24-hour kiosk which works like an ATM, but provides dry cleaning services.

In addition to 24-hour services, all Tide Dry Cleaners locations either have a drive-thru or curbside valet service. Either service allows customers to remain in their car while an employee takes their clothes for drop off, or returns their clothes for pick up. Some locations even have free home delivery and pick up.

Additional services at all locations include same-day regular cleaning for garments dropped off before 9 a.m., alterations (some locations have on-site tailors), and Tide products available for purchase.

Eco-friendly Dry Cleaning

Tide Dry Cleaners is one of several dry cleaning services that uses Greenearth Cleaning, which was founded in 1999 by former dry cleaners Jim Barry, Ron Benjamin, and Jim Douglas. Greenearth Cleaning is an environmentally non-toxic dry cleaning process that uses liquid silicone solvents instead of petroleum-based chemicals.

Although the cleaning process is gentle on the environment, fabrics, and garment embellishments, the process thoroughly cleans customers’ clothing. The process leaves clothes free of smelling like the typical harsh dry cleaning chemicals and is replaced with the familiar scent of Tide. For customers sensitive to scented products, unscented Tide is available upon request.

First Time Ranking on Entrepreneur’s Franchise 500

Tide Dry Cleaners is a fairly young company that has not experienced much growth until recently. Due to this, the franchise has never ranked on Entrepreneur’s Franchise 500 list until this year. For 2017, Tide Dry Cleaners has placed No. 441 on the annual list.

Section II – Estimated Costs

  • Please click here for detailed estimates of Tide Dry Cleaners franchise costs, based on Item 7 of the company’s 2016 FDD.

Section III – Financial Performance Representations (Item 19, 2016 FDD) and Analysis

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