ZIPS Cleaners Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
ZIPS Cleaners is an express dry cleaning and laundry franchise known for flat, same-day pricing. Franchisees operate high-volume retail cleaning plants, handling garment intake, on-site processing, and customer pickup.
FranchiseVerdict summary · 2026
A ZIPS Cleaners franchise requires a total initial investment of $762K – $1.2M, including a $15K – $30K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.3M[2]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $762K – $1.2M
- 84th pct Cleaning & Ma…
- Avg gross sales
- $1.3M
- 34th pct Cleaning & Ma…
- Royalty
- 6.0%
- 9th pct Cleaning & Ma…
- Units
- 72
- 55th pct Cleaning & Ma…
- SBA charge-off
- N/A
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
- COSTTotal investment $762K – $1.2M including a $30K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $1.3M/year (median $1.1M), with an estimated 21% cash-on-cash return (based on Income Before General and Administrative Expenses8).
- RISKVerdict A (Strongest tier), verdict score 79/100 (higher is better).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- ZIPS Franchising, LLC
- Parent company
- Value Drycleaners of America, LLC (VDA)
- Ultimate parent
- JPBVDA, Inc.
- CEO title
- Chief Executive Officer
- Robert J. Barry, Jr.
- Incorporated in
- Maryland
- HQ
- 8510 Corridor Road, Suite 200, Savage, Maryland 20763
- Auditor
- SC&H Attest Services, P.C.
- Audited financials
- Franchisor revenue
- $5.4M
- vs $5.7M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- Robert J. Barry, Jr.
- Headquarters
- MD
- Founded
- 1996
- FDD year
- 2025
- States available
- 9
Can you afford it, and what does the money buy?
Entry cost runs 213% above the typical cleaning & maintenance franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $30K | $30K |
| Working capital (3–6 mo) | $100K | $200K |
| Equipment, build-out, other | $632K | $968K |
| Total initial investment | $762K | $1.2M |
Source: ZIPS Cleaners 2025 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
- $762K – $1.2M
- Bottom third — review vs category
- Liquid capital req'd
- $100K – $200K
- Bottom third — review vs category
- Franchise fee
- $15K – $30K
- Top 40% of category vs category
- Royalty
- 6.0%
- Royalty Net Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
- Payback period
- 4.8 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $550 |
| Training fee | $500 |
| Transfer fee | $10K |
| Renewal fee | $10K |
| Total fee load | 8.0% of rev |
What do units actually make?
Average unit sales run 40% above the cleaning & maintenance norm.
Source: FDD 2025 · 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
$138K
11.0% margin
Unlevered ROIC
12%
EBITDA / total invested capital
Payback
8.2 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
FDD-reported earnings vs. model
The FDD reports $368K as Income Before General and Administrative Expenses8. Our model estimates $138K SLEBITDA from the same revenue using category-average cost assumptions. These numbers differ because Income Before General and Administrative Expenses8 deducts different expense categories than our model.
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one ZIPS Cleaners unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
12%
Below the 30–60% attractive-franchise band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 ZIPS Cleaners units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.0M
on $5.0M purchase
Total debt
$4.0M
SBA $2.5M + senior + seller note
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
- Avg gross sales
- $1.3M
- Per unit, per year
- Median gross sales
- $1.1M
- Avg income before general and administrative expenses8
- $368K
- Reported as Income Before General and Administrative Expenses8 in FDD Item 19
- Cash-on-cash
- 20.7%
- Based on Income Before General and Administrative Expenses8 / investment midpoint
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 49 outlets
- vs category median 32
- Range (low → high)
- $220K→$2.8M
- Cohort dispersion (min → max)
- Source filing
- FDD 2025
- The FDD edition these figures were read from
- Transparency
- 6 / 10
- vs category median 4 / 10 · above
Compared against 192 Cleaning & Maintenance brands
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 $1.3M/year in gross sales. Revenue-to-investment ratio: 1.3x.
Fee burden
Total ongoing fee load of 8.0% — below the Cleaning & Maintenance average of 9.7%.
Disclosure
Transparency score 6/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 11.1% CAGR over 3 years across 72 units — operators are staying and new ones are joining.
Multi-unit rate
33% of franchisees own multiple units, a moderate multi-unit rate.
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 ZIPS Cleaners Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 72
- Opened
- 4
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 97%
- vs corporate-owned
- Multi-unit owners
- 33.3%
- Net growth (3-yr)
- +11.1%
- Net unit change over 3 years
- 3-yr CAGR
- +11.1%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 4
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 1
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 5
- Franchisor's next-year forecast
- Transfer rate
- 1.4%
- Owners selling to other franchisees
- Ceased ops
- 1.4%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 10 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 15
- Loan volume
- $13.7M
- Median loan
- $913K
- average
- Charge-off rate
- N/A
- no resolved loans yet — rate needs a terminal outcome
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 10
- Defaults
- 2
Vintage analysis
ZIPS Cleaners charge-off rate by loan vintage
Top lenders financing ZIPS Cleaners franchisees
Showing 3 of 10 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.
Premium insight
SBA Lending Report
Deep-dive into ZIPS Cleaners's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 7 states
- Startup risk premium and job creation velocity
Instant access. No subscription.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Clean profile: zero litigation, no bankruptcy, no going-concern, and positive franchisor net worth of $662,611 with net income of $172,723 on $5.7M revenue. Audited financials and Item 19 disclosed (avg gross sales $1,256,748 across 72 units). Zero turnover and healthy 11.1% net growth.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · SC&H Attest Services, P.C.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 79 / 100 verdict
- 01MINORPositive net worth $662,611 and net income $172,723
- 02MINORZero litigation, no bankruptcy, no going-concern
- 03MEDAudited financials, Item 19 disclosed, 0% turnover
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Radius, metes and bounds, or zip codes |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Maryland |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 120 hrs
- Training location
- On-site and off-site
- Ongoing training
- Required
- POS system
- ZIPSsoft Software
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: ZIPSsoft Software
Item 20 · call current owners
Franchisee Contacts
69 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
ZIPS Cleaners · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a ZIPS Cleaners franchise?
The total investment to open a ZIPS Cleaners franchise ranges from $762K – $1.2M, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do ZIPS Cleaners franchise owners earn?
According to Item 19 of the ZIPS Cleaners FDD, the average gross sales per unit is $1.3M. The median is $1.1M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the ZIPS Cleaners FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the ZIPS Cleaners FDD and qualifies whose outlets they describe.
What is ZIPS Cleaners's franchise failure rate?
SBA 7(a) loan charge-off data is not available for ZIPS Cleaners (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many ZIPS Cleaners franchise locations are there?
As of their most recent FDD filing, ZIPS Cleaners has 72 total units in the United States, including 70 franchised units and 2 company-owned units. 4 new units were opened in the latest reporting year.
Is ZIPS Cleaners a good franchise to buy?
FranchiseVerdict rates ZIPS Cleaners as a A-grade franchise with a verdict score of 79 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
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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.