Lapels Dry Cleaning Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
FranchiseVerdict summary · 2026
A Lapels Dry Cleaning franchise requires a total initial investment of $391K – $730K, including a $50K franchise fee and an ongoing 6.0% royalty[2]. Per the 2026 FDD, average unit revenue was $423K[2]. SBA 7(a) loans show a 30.0% charge-off rate across 12 loans[1]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $391K – $730K
- 81st pct Cleaning & Ma…
- Avg gross sales
- $423K
- 15th pct Cleaning & Ma…
- Royalty
- 6.0%
- 10th pct Cleaning & Ma…
- Units
- 83
- 60th pct Cleaning & Ma…
- SBA charge-off
- 30.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Cleaning & Maintenance · color = vs category peers
Green = favorable by >10% vs Cleaning & Maintenance avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- Total investment $391K – $730K including a $50K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $423K/year (median $389K).
- Verdict C (Average), verdict score 40/100 (higher is better). SBA loan charge-off rate of 30.0% across 12 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Next Step Franchising, LLC
Overview
About
Full-service environmentally friendly dry cleaning Plants, Satellite Dry Cleaning Stores, Pick Up and Delivery Model (Lapels Delivers), and Laundromats offering dry cleaning, shirt service, laundry, tailoring, shoe repair, wedding gown storage, fur storage, and other ancillary services.
- CEO
- Kevin A. DuBois
- Headquarters
- FL
- Founded
- 2000
- FDD year
- 2026
Can you afford it, and what does the money buy?
Entry cost runs 79% above the typical cleaning & maintenance franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Equipment, build-out, other | $341K | $680K |
| Total initial investment | $391K | $730K |
Source: Lapels Dry Cleaning 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $391K – $730K
- Bottom third — review vs category
- Liquid capital req'd
- N/A
- Bottom third — review vs category
- Franchise fee
- $50K
- Middle of category vs category
- Royalty
- 6.0%
- typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
What do units actually make?
Average unit sales run 57% below the cleaning & maintenance norm.
Source: FDD 2026 · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$47K
11.0% margin
Unlevered ROIC
8%
EBITDA / total invested capital
Payback
13.0 yrs
cash-on-cash, unlevered
Financial Performance
- Avg gross sales
- $423K
- Per unit, per year
- Median gross sales
- $389K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
Compared against 201 Cleaning & Maintenance brands
Revenue is only 0.8x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $423K/year in gross sales. Revenue-to-investment ratio: 0.8x.
Fee burden
6.0% royalty + 2.0% ad fund — lower than the category average.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Cleaning & Maintenance averages
How Lapels Dry Cleaning Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 83
- Opened
- N/A
- Last reporting year
- Closed
- N/A
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 12
- Loan volume
- $5.7M
- Median loan
- $507K
- 50th percentile
- Charge-off rate
- 30.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 70.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 6
- Defaults
- 3
- Typical loan rate
- 5.8%
- avg rate to borrowers
- vs industry
- N/A
- NAICS 8123
- Jobs supported
- 89
- 1.6 per loan
- Lender concentration
- 33%
- top lender's share
Borrower mix: 0% went to startups / new businesses, 100% to established operators
Top lenders financing Lapels Dry Cleaning franchisees
Showing 3 of 6 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
A 30.0% charge-off rate means roughly 1 in 3 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 30.0% — 87% above the 16.0% national norm, i.e. higher lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Lapels Dry Cleaning franchise?
The total investment to open a Lapels Dry Cleaning franchise ranges from $391K – $730K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Lapels Dry Cleaning franchise owners earn?
According to Item 19 of the Lapels Dry Cleaning FDD, the average gross sales per unit is $423K. The median is $389K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Lapels Dry Cleaning's franchise failure rate?
Based on SBA 7(a) loan data, Lapels Dry Cleaning has a charge-off rate of 30.0% across 12 loans, meaning 30.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Lapels Dry Cleaning franchise locations are there?
As of their most recent FDD filing, Lapels Dry Cleaning has 83 total units in the United States.
Is Lapels Dry Cleaning a good franchise to buy?
FranchiseVerdict rates Lapels Dry Cleaning as a C-grade franchise with a verdict score of 40 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent Lapels Dry Cleaning, you can request corrections or provide updated information.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.