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]. The 2025 FDD does not disclose unit-level revenue (no Item 19). 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
- N/A
- 54th pct Cleaning & Ma…
- Royalty
- 6.0%
- 10th 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
- Total investment $762K – $1.2M including a $15K franchise fee, 6.0% ongoing royalty.
- Item 19 disclosed $1.3M as gross profit, not gross revenue. Gross revenue would be significantly higher than this figure.
- Verdict A (Strongest tier), verdict score 79/100 (higher is better).
- Item 19 reports "Average Total Income, Cost of Goods, Gross Profit, and Certain Costs" instead of annual gross sales. Ask franchisees directly for full unit-level revenue.
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 | $15K | $15K |
| Working capital (3–6 mo) | $100K | $200K |
| Equipment, build-out, other | $647K | $983K |
| 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
- 2.7 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?
Source: FDD 2025 · Item 19
Financial Performance
Item 19 disclosed $1.3M as gross profit, not gross revenue. Gross revenue would be significantly higher than this figure.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 8.0% — below the Cleaning & Maintenance average of 9.7%.
Disclosure
Item 19 reports "Average Total Income, Cost of Goods, Gross Profit, and Certain Costs" rather than annual gross sales. Not directly comparable across brands.
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 $15K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do ZIPS Cleaners franchise owners earn?
ZIPS Cleaners does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
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
Are you the franchisor?
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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.