How Much Does a ZIPS Cleaners Franchise Cost?
Data from the 2025 Franchise Disclosure Document
Investment Summary
Total Investment
$762K – $1.2M
Franchise Fee
$30K
Royalty
6.0%
Ad Fund
2.0%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for ZIPS Cleaners is $30K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.
Total Investment Range
Opening a ZIPS Cleaners franchise requires a total investment of $762K – $1.2M. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.
Working capital alone ranges from $100K to $200K.
Ongoing Costs
Beyond the initial investment, ZIPS Cleaners franchisees pay ongoing fees. The royalty fee is 6.0% of gross sales (Royalty Net Sales). The advertising or brand fund contribution is 2.0% of gross sales. There is also a technology fee of $550.
Net Worth & Liquid Capital Requirements
ZIPS Cleaners requires working capital of $100K – $200K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.
What Can You Earn?
ZIPS Cleaners does not disclose earnings data in Item 19 of its Franchise Disclosure Document. Not all franchisors choose to publish financial performance representations, though this is a data point many prospective franchisees consider important.
How Do Banks View ZIPS Cleaners?
SBA Loans Issued
15
Default Rate
100.0%
The SBA (Small Business Administration) tracks loan performance for franchise brands. ZIPS Cleaners has 15 SBA-backed loans on record. The default rate is 100.0%, which is above the franchise industry average, suggesting higher lending risk. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.
Next Steps
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