• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Menu
  • Home
  • About
    • About Franchise Chatter
    • Contact
    • Privacy Policy
    • Terms of Service
    • Affiliate Disclosures
  • Subscribers Hub
    • Login
    • New to Franchise Chatter? Start Here
    • America’s Most Lucrative Franchises
    • Franchises Ranked by Average Revenues
    • Franchises Ranked by Average Profits
    • Franchise Winners, Survivors and Losers Last Year
    • FDD Talk
    • Search by Name
  • Top Franchises
  • Franchise Earnings
  • Costs
  • Fees
  • Quiz
  • Search

FDD Talk 2018: ZIPS Dry Cleaners Franchise Review (Financial Performance Analysis, Costs, Fees, and More)

Last updated on October 19, 2018 by Franchise Chatter Leave a Comment
in Dry Cleaning Franchise, FDD Talk: Service Franchises, Franchise Earnings

Zips Dry Cleaners Photo by Maryland Route 5



Learn Which Franchises Can Make You Rich

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

  • Section I – Background information on the ZIPS Dry Cleaners franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a ZIPS Dry Cleaners franchise, based on Item 7 of the company’s 2018 FDD
  • Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a ZIPS Dry Cleaners franchise, based on Items 5 and 6 of the company’s 2018 FDD
  • Section IV – Number of franchised and company-owned ZIPS Dry Cleaners outlets at the start of the year and the end of the year for 2015, 2016, and 2017, based on Item 20 of the company’s 2018 FDD
  • Section V – Presentation and analysis of ZIPS Dry Cleaners’ financial performance representations, based on Item 19 of the company’s 2018 FDD, including information on the:
  • 2017 average revenue, cost of production supplies, gross margin, labor, rent, repairs and maintenance, utilities, and income before general and administrative expenses for the 43 ZIPS Dry Cleaners Businesses operated by franchisees during the period January 1, 2017 through December 31, 2017

Section I – Background Information

18 Things You Need to Know About the ZIPS Dry Cleaners Franchise

Aggressively Pursuing Growth

1.  Around the end of June 2018, ZIPS Dry Cleaners said that it had been on a recent roll and was “growing with gusto.” According to a press release, ZIPS has a burgeoning development pipeline and recently signed franchise deals for more than 200 locations, with plans to make its presence known in 10 states by the end of next year, and double that number in 2020.

America's Most Lucrative Franchises of the Year

2.  Drew Ritger, CEO of ZIPS Dry Cleaners, said, “ZIPS has received phenomenal interest during the past year from potential investors and the concept is considered the best in the garment care business by a number of franchise publications. We are humbled by the recognition and investment, and believe the brand is well positioned for growth to provide superior returns to our franchisees in the days ahead. We expect ZIPS to be a recognizable and profitable national brand by 2030 with sales approaching $1 billion annually.”

3.  Ritger added that in the past year, ZIPS has entered the new markets of Texas and California, with Florida, Indiana, Oregon, and Ohio on deck. Along with existing market expansion, target markets for future new growth include Atlanta, Raleigh, and Charlotte, North Carolina; Nashville, Tennessee; Dallas, Texas; Denver, Colorado; Chicago, Illinois; and Minneapolis, Minnesota.

4.  Over the next few years, Ritger expects to build ZIPS into a national brand, with a $1 billion future. Other goals that Ritger outlined include: 100 stores and $150 million in annual sales; store count growth that exceeds 25 percent after 2021; a development pipeline of over 350 stores; and No.1 market share in each market.

5.  To reach these goals, ZIPS is expanding with existing franchisees and new, seasoned multi-unit operators. Ritger said, “This is encouraging, as it expresses faith in the business, brand, and market segment going forward. We are also pleased that our current franchise base is reinvesting in the brand in our core markets. ZIPS is a market disruptor that is well positioned to gain market share in the markets where we invest. It is exciting to see other experienced multi-unit franchisees accept our strategy and invest in the brand.”

Receives Platinum Award for Website Redesign


🎯Find Good Franchises That Are Still AVAILABLE in Your Target Area (Free Tool)



🚀How to Find, Vet & FUND a Good Franchise. Watch Our Webinar Live or the Recording Later (Register Now – It's Free)



💰How Much Franchise Can You AFFORD? Use Our Free Financial Calculator


6.  At the end of September 2018, ZIPS Dry Cleaners’ newly-redesigned website (www.321zips.com) won the Platinum Award for “Best Website Redesign” from the prestigious 2018 dotCOMM Awards, an international competition honoring excellence in web creativity and digital communication.

7.  The company’s redesigned, mobile-friendly website gives visitors a comprehensive understanding of the brand’s services and also provides “ZIPS Tips” for keeping clothes fresh at home. The website even answers the question of how ZIPS is able to offer such high-quality services at the low price of $2.29 per garment.

8.  The redesign comes just a few months after ZIPS rebranded in an effort to strengthen its online presence, keep up with digital trends, and target a younger demographic: millennials. The responsive, thoughtfully-designed website was created by franchise marketing agency Wheat Creative.

9.  Enid Traub, vice president of marketing for ZIPS Dry Cleaners, said, “It’s been nearly a decade since we’ve redone our website. We know our customers will appreciate the sleek, modern design and ease of navigation and now we have a website that is as one-of-a-kind as our one-price, same-day business model.”

CEO Retirement and New Appointment

Franchises Ranked by Average Profits

10.  In late 2017, ZIPS Dry Cleaners announced that Reid Bechtle would retire as chief executive officer and that the board of directors had elected Andrew Ritger, Jr. (“Drew”) to be the company’s next CEO.

11.  Bechtle had served as CEO of ZIPS since April 2013, when he was brought on to move the company through its next phase of growth, including improved execution of the existing system and further geographic expansion of the concept. Under Bechtle’s leadership, ZIPS has grown from 36 to 52 locations across the country, and today has a total active franchise pipeline that stands at more than 250 stores.

12.  Jim Bolduc, senior managing director for JPB Capital Partners, the majority owner of ZIPS, said, “We are grateful for the accomplishments and results that ZIPS has achieved under Reid’s leadership and we wish him well in his retirement and the next phases of his life. He has put a solid foundation in place on which to build the next level of ZIPS’ success.”

13.  Ritger came to ZIPS after spending nearly 22 years with Sonic Corporation. In his most recent role as the senior vice president for development, Ritger led Sonic in adding over 1,850 new stores, increasing revenue by 95%, and improving operational performance by focusing on key customer performance measures.

14.  Bolduc added, “We are excited about Drew joining ZIPS as our next CEO. Drew is a proven leader in the franchise world. His experience and expertise in opening stores, leading operations, growing profits and revenue, and forming strong, long-term employee, franchisee, vendor, and community relationships will be a tremendous asset in making ZIPS a national brand and a market leader in its segment.”

Company History

15.  ZIPS Dry Cleaners started out as eight separate dry cleaners in the Baltimore-Washington, D.C. area. In 2002, the group of independent dry cleaners came together to establish ZIPS with the goal of providing a dry cleaning experience that maintains high-quality services at one low price for any garment. ZIPS started franchising in 2006 and the concept was a success.

16.  Although the original 14 owners of ZIPS were able to grow the brand without outside help for a while, JPB Capital Partners of Columbia, Maryland bought a large share of the company in 2013. JPB Capital brought in a full-time CEO, Reid Bechtle, who helped push ZIPS’ growth even further.

17.  Today, ZIPS Dry Cleaners is led by its new CEO Drew Ritger and continues to grow across the country.

Entrepreneur’s Franchise 500

18.  ZIPS Dry Cleaners ranked No. 135 on Entrepreneur’s 2018 Franchise 500 list.

Section II – Estimated Costs

  • Please click here for detailed estimates of ZIPS Dry Cleaners franchise costs, based on Item 7 of the company’s 2018 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

  • Please click here for detailed information on ZIPS Dry Cleaners’ initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2018 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2015

  • Outlets at the Start of the Year:  37
  • Outlets at the End of the Year:  41
  • Net Change:  +4

2016

  • Outlets at the Start of the Year:  41
  • Outlets at the End of the Year:  45
  • Net Change:  +4

2017

  • Outlets at the Start of the Year:  45
  • Outlets at the End of the Year:  51
  • Net Change:  +6

Company-Owned

2015

  • Outlets at the Start of the Year:  1
  • Outlets at the End of the Year:  1
  • Net Change:  0

2016

  • Outlets at the Start of the Year:  1
  • Outlets at the End of the Year:  1
  • Net Change:  0

2017

  • Outlets at the Start of the Year:  1
  • Outlets at the End of the Year:  2
  • Net Change:  +1

Section V – Financial Performance Representations (Item 19, 2018 FDD) and Analysis

  • Presented below are the average total revenue, average total cost of goods, average total gross margin, and average cost of labor, rent, repairs and maintenance, and utilities data for 43 ZIPS Dry Cleaners Businesses operated by franchisees during the period January 1, 2017 through December 31, 2017.
  • All 43 Franchised Businesses were open and operating during the 12-month period January 1, 2017 to December 31, 2017. These Franchised Businesses are located in the District of Columbia, Maryland, Pennsylvania, and Virginia.
  • Six Franchised Businesses are not included because they were not in operation for the entire year and two Franchised Businesses are not included because they did not provide financial detail for the entire year.
  • This data was compiled from unaudited financial statements submitted to the franchisor by the Franchised Businesses. The franchisor believes the information is accurate, but it has not audited or verified the information and cannot verify that the information was compiled using consistently applied accounting principles.
  • Revenue – This figure is an average of all income and revenue from the sale of all services and products to customers less refunds to customers, discounts, and store value gift cards and gift certificates.
  • Production Supplies – The average Production Supplies includes the total costs of all services and products sold at ZIPS Dry Cleaners Businesses (such as alterations, supplies, leather costs, dry cleaning and laundry supplies, and waste disposal). These costs may vary from year to year, or within a year, due to fluctuations in the prices of supplies and/or materials, transportation costs, and/or shipping costs.
  • Gross Margin – This figure represents the Revenue minus the Production Supplies.
  • Labor – Labor includes salary, payroll taxes, wages, or benefits (including vacation pay) for management personnel and employees. Each ZIPS Dry Cleaners Business compensates its managers differently and may use varied formulas. Franchisees may compensate managers differently or may compensate one or more individual owners in lieu of one or more managers.
  • Rent – This includes rent, property taxes, and miscellaneous items. Rent consists of minimum rents, percentage rents, common area maintenance charges, and any sales or other taxes. Property taxes are real estate taxes and assessments levied against the property upon which the business is located.
  • Repairs and Maintenance – This includes equipment and facility repair and maintenance.
  • Utilities – This includes alarm system monitoring, satellite, telephone, internet and cable costs, and charges for water, gas, and electric. The charges for water are included in either the Utilities category or the Rent category, depending upon whether such charges are payable under the terms of the lease for the particular ZIPS Dry Cleaners Business.
  • Income Before General and Administrative Expenses – This figure represents the Gross Margin minus Labor, Rent, Repairs and Maintenance, and Utilities, as defined above.

System-wide ZIPS Dry Cleaners Businesses – Statement of Average Total Revenue, Total Cost of Goods, Total Gross Profit, and Total Certain Costs (During Period January 1, 2017 to December 31, 2017)



To Access the Rest of This Article and Other Premium, Income-Enhancing Content, Subscribe Now or Log In.

Gain the Insider Information (and Actual Earnings Data) You Need to Make a Safe and Smart Franchise Investment. Click Here to Learn More.



Gain the Insider Information (and Actual Earnings Data) You Need to Make a Safe and Smart Franchise Investment - See more at: https://www.franchisechatter.com/register/#sthash.le7wKJKM.dpuf

🎯Find Good Franchises That Are Still AVAILABLE in Your Target Area (Free Tool)



🚀How to Find, Vet & FUND a Good Franchise. Watch Our Webinar Live or the Recording Later (Register Now – It's Free)



💰How Much Franchise Can You AFFORD? Use Our Free Financial Calculator



Franchises Ranked by Average Revenues and Profits



Franchise Winners and Losers Last Year

Tagged as: ZIPS Dry Cleaners

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Previous post: FDD Talk 2018: Martinizing Dry Cleaning Franchise Review (Financial Performance Analysis, Costs, Fees, and More)

Next post: 52 Substantial Fees Every Schlotzsky's Franchisee Needs to Know About

Primary Sidebar

🚀How to Find, Vet and FUND a Good Franchise (Webinar)

✅ Is Franchising a Path for You? – Apr. 7 (Fri.), 11 a.m. EST

✅ Popular Trends in Franchising – Apr. 11 (Tues.), 4 p.m. EST

✅ Register Now to Get Free Access to Recordings of Both Webinars

Register Now

🤔Buying a Franchise on Your Own Can Be Overwhelming

✅ Get the guidance and support you need every step of the way (including funding 💵) from an experienced franchise broker at no cost to you.

✅ Fill out this form and a specialist from the Franchise Brokers Association will reach out to you.

⭐️Franchise Chatter is reader-supported. We may receive a commission for leads generated from our site.

As seen in:  New York Times, Bloomberg Businessweek, and CNBC

Login

Remember Me
Register | Lost your Password?
Reminder: Your username and password are case-sensitive.

Need help? Email franchisechatterblog@gmail.com

👍”Your website and you have been instrumental in finding this franchise opportunity and I am overwhelmingly grateful.” (David F., subscriber)

🏆 Best Franchises by Industry

Best Franchises by Industry (All Lists)

Best Gym and Fitness Franchises

Best Pizza Franchises

Best Sandwich Franchises

Best Childcare Franchises

Best Ice Cream Franchises

Best Coffee Franchises

Best Hamburger Franchises

Best Salon and Beauty Franchises

Best Chicken Franchises

Best Smoothie and Juice Franchises

Best Maid Service Franchises

Best Mexican Restaurant Franchises

Best Massage Service Franchises

Best Tutoring Franchises

Best Auto Repair Franchises

Best Auto Oil Change Franchises

Best Asian Restaurant Franchises

Best Pet Franchises

Best Commercial Cleaning Franchises

Best Sports Bar Franchises

Best Baked Goods Franchises

Best Moving/Junk Removal Franchises

Best Mailbox Franchises

Best Apparel Retail Franchises

Best Senior Care Franchises

Best Restoration Franchises

Best Tech Franchises

Best Travel Agency Franchises

Best Trampoline Park Franchises

Best Tools Distribution Franchises

Best Property Management Franchises

Best Real Estate Franchises

Best Automotive Wheels and Tires Franchises

Best Weight Loss Franchises

Best Flooring Franchises

Best Eye Care Franchises

Best Physical Therapy Franchises

Best CBD Franchises

Best Tea Franchises

Best Ghost Kitchen Franchises

Best Acai Bowl Franchises

Best Poké Bowl Franchises

Best Donut Franchises

Best Kitchen and Bath Remodeling Franchises

Best Window Coverings Franchises

Best Plumbing Franchises

Best Home Inspection Franchises

Best Garage Franchises

Best Barbershop Franchises

Best Laundromat Franchises

Best Storage Unit Franchises

Best Car Wash Service Franchises

🚀 Daily FDD Talk Posts

One Hour Heating & Air Conditioning Franchise

PatchMaster Franchise

Spray Foam Genie Franchise

Bumble Bee Blinds Franchise

Mr. Sandless Franchise

EverLine Coatings Franchise

Blue Kangaroo Packoutz Franchise

Tommy’s Express Car Wash Franchise

Footprints Floors Franchise

Wendy’s Franchise

Clean Juice Franchise

Nurse Next Door Franchise

Made in the Shade Blinds & More Franchise

Five Star Bath Solutions Franchise

Beef ‘O’ Brady’s Franchise

Costa Vida Fresh Mexican Grill Franchise

Uptown Cheapskate Franchise

Pancheros Mexican Grill Franchise

Squeeze Franchise

Mosquito Squad Franchise

The Exercise Coach Franchise

ProLift Garage Doors Franchise

Heroes Lawn Care Franchise

Burn Boot Camp Franchise

Wing Zone Franchise

DreamMaker Bath & Kitchen Franchise

The Camp Transformation Center Franchise

Brightway Insurance Franchise

Owl Be There Franchise

The Dog Wizard Franchise

Scenthound Franchise

Bin There Dump That Franchise

Gotcha Covered Franchise

Phenix Salon Suites Franchise

AKT Franchise

Kitchen Solvers Franchise

FASTSIGNS Franchise

Zoom Drain Franchise

Pool Scouts Franchise

Ace Hardware Franchise

Signarama Franchise

Jovie Franchise

i9 Sports Franchise

UFC Gym Franchise

Sola Salons Franchise

N-Hance Wood Refinishing Franchise

Cost Cutters Franchise

Ziggi’s Coffee Franchise

D1 Training Franchise

Soccer Shots Franchise

Batteries Plus Franchise

Franchise Chatter © 2023