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Franchise Costs: Detailed Estimates of Tide Dry Cleaners Franchise Costs (2016 FDD)

by Franchise Chatter on February 2, 2017

in Dry Cleaning Franchise, Franchise Costs



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Tide Dry Cleaners photo by westchesterbuzz

Detailed Estimates of Tide Dry Cleaners Franchise Costs Based on Item 7 (Estimated Initial Investment) of Tide Dry Cleaners’ 2016 Franchise Disclosure Document

For Plant Store

1.  Initial Franchise Fee:  $20,000 to $50,000

2.  Project Management Fee:  $20,000

  • Tide Dry Cleaners uses the Project Management Fee to provide, or engage designated third parties to provide, certain support and assistance in the location and development of the Outlet, including project management of the site.

3.  Start-Up Assistance and Training Fee:  $20,000

  • Tide Dry Cleaners uses the Start-up Assistance and Training Fee to provide, or engage designated third parties to provide, certain support and assistance in the start-up of the Outlet, including training, vendor support, and other periodic support in connection with the opening of the Outlet and start-up of operations.

4.  New Store Marketing Expense:  $25,000

  • Tide Dry Cleaners typically spends the New Store Marketing Expense within 1 month before and 3 months after the date you open the Outlet, subject to changes it may allow based on the particular market area or other unique circumstances of the Outlet.
  • Tide Dry Cleaners may use the New Store Marketing Expense to pay providers of advertising and related promotional programs during the new store opening period, including it, its affiliates, or third-party suppliers.

5.  Extension Fees:  $0 to $5,000



  • Tide Dry Cleaners may grant you, in its reasonable business judgment, extensions on the contractual deadlines relating to the opening of the Outlet.
  • You must request from Tide Dry Cleaners an extension of the applicable deadline at least 14 calendar days before the occurrence of the deadline date.
  • If Tide Dry Cleaners grants an extension on any deadline, it will determine the amount of the extension fee and the length of the extension in its sole judgment and it may consider a variety of factors, including the diligence you have shown in developing the location.

6.  Initial Training Expenses (out-of-pocket travel related costs for 2 attendees):  $11,500 to $15,500

  • This figure estimates the out-of-pocket costs and expenses for your 2 attendees to travel to and participate in Tide Dry Cleaners’ initial training program for a Plant Store.

7.  Cleaning Agents:  $6,000 to $10,500

  • You must use Tide Dry Cleaners’ designated suppliers, which may include it or its affiliates, to acquire the Proprietary Products and related items (such as proprietary and non-proprietary agents, solvents, detergents, and other miscellaneous products) that you will use to operate the Outlet.
  • Tide Dry Cleaners will connect you with suppliers approved by it that may also help you order certain retail store merchandise that may be available for resale at the Outlet.

8.  Plant Dry Cleaner Equipment and Installation:  $398,000 to $543,000

  • These amounts include the laundry and dry cleaning equipment, machines, conveyors, pressing machines, lockers or a kiosk, special services machines, and other industrial technologies and related items (the “Plant Dry Cleaner Equipment”) that you must purchase from suppliers Tide Dry Cleaners designates (which may include it or its affiliate).
  • Tide Dry Cleaners will determine the amount of Plant Dry Cleaner Equipment that you will need to purchase.
  • Outlet sizes and specifications, such as equipment needs (e.g., 1 dry cleaning machine versus 2 dry cleaning machines), can vary with the Outlet’s anticipated volume based on site location and demographics, thus accounting for the lower and higher figures represented. Terms and conditions are determined by the supplier(s) Tide Dry Cleaners designates.
  • Tide Dry Cleaners anticipates that your purchase of Plant Dry Cleaner Equipment will require a deposit that approximates 50% of the final equipment price. The remaining balance is typically due to the supplier upon delivery to the Outlet and prior to installation.

9.  Pre-Opening Wages:  $15,000 to $25,000

  • This figure estimates the salaries you will pay your key employees (at least 1 general manager) during the initial training Tide Dry Cleaners provides and their pre-opening employment at the Outlet, as well as a minimum of 1 week of pre-opening wages for hourly employees needed for opening.
  • It does not include your out-of-pocket expenses related to the training in which your 2 designated attendees will participate before you open your Outlet.

10.  Start-Up Supplies:  $18,500 to $22,500

  • These figures estimate the total initial cost of various supplies, including:  hand-tools for minor repairs to the equipment and premises; uniforms for your personnel; branded laundry bags for consumer use; hangers; poly bags; baskets; printed materials (such as letterhead, stationery, business cards, envelopes, and invoices) and printing; basic furniture; and miscellaneous office supplies for the Outlet.
  • Tide Dry Cleaners includes its recommendations, minimum requirements or specifications, and designated or approved suppliers for these items in the Operations Manual.
  • “Start-up Supplies” will include both consumables that are used to operate the Outlet and are replenished on an ongoing basis as needed, and durable supplies such as tools, garment bins, office furniture, and other items that are expected to last more than 1 year.

11.  Supplemental Equipment:  $5,500 to $12,500

  • “Supplemental Equipment” includes pumps that supply detergent and chemicals to process equipment, phone system, music system for the lobby, flat screen monitors for lockers and lobby, IT cabinet, safe, and cameras/security system.

12.  Insurance and Other Business Set-Up Costs:  $6,000 to $10,500

  • Insurance costs depend on policy limits, types of policies, nature and value of physical assets, net revenue, number of employees, square footage, location, business contents, and other factors bearing on risk exposure.
  • The estimate contemplates insurance costs for 3 months.

13.  Signage (Interior and Exterior):  $18,500 to $33,500

  • Tide Dry Cleaners’ estimate for signage includes only the baseline signage it requires for the Outlet. However, you may choose to purchase enhanced or upgraded signage at your option (if available from the designated supplier), which could cost more than the estimate.

14.  Leasehold Improvements:  $0 to $567,000

  • You must modify the Outlet according to Tide Dry Cleaners’ approved standards. The costs associated with modifications to the site/building, which may be necessary to install equipment and operate a standard Outlet according to Tide Dry Cleaners’ floor plans/layouts, will vary depending on the condition of the site and whether the landlord includes the cost of improvements in the rent/lease. This may affect the monthly occupancy cost.
  • However, you may choose to purchase upgraded electrical and plumbing, cabinetry, or flooring at your option (if available from the designated supplier), which could cost more than the estimate.

15.  3 Months’ Occupancy Cost:  $0 to $37,500



  • Rent depends on geographic location, size, prevailing market rates, businesses in the area, site profile, your credit rating, and other factors, and could be considerably higher in large metropolitan areas. Tide Dry Cleaners anticipates that you will rent the Outlet’s premises.
  • The low end of the estimate reflects multiple instances where landlords have granted Tide Dry Cleaners franchisees waivers or deferrals of rental amounts during the first 3 months of operations such that the franchisees paid $0 during the period.

16.  POS and Related IT System:  $22,800 to $33,200

  • These estimates include the computer hardware and software you will need to operate your Outlet and any related network equipment and cabling, start-up fees, and support of the Computer System.

17.  Additional Funds:  $57,500 to $85,000

  • This estimates the funds needed to cover your initial expenses for the first 3 months of operation (other than the items identified separately in the table). These expenses include payroll costs (but not any draw or salary for you) and payment of utilities.
  • These figures are estimates, and Tide Dry Cleaners cannot guarantee that you will not have additional expenses during the first 3 months you operate the Outlet and for a longer time period after that.

18.  Total Estimated Initial Investment:  $644,300 to $1,515,700

  • Tide Dry Cleaners relied on its officers’ and consultants’ over 30 years of collective experience in the fabric care and dry cleaning industry, and its experience in franchising, building, starting up, and operating its company-owned Outlets, to generate these estimates.

For Drop Store

  • The total estimated initial investment necessary to begin operation of a Tide Dry Cleaners Drop Store ranges from $190,300 to $610,400.

For Non-Traditional Store

  • The total estimated initial investment necessary to begin operation of a Tide Dry Cleaners Non-Traditional Store ranges from $8,800 to $82,500.


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