How Much Does It Cost to Start a Dry Cleaning Franchise?

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A dry cleaning franchise might not be the most exciting of business prospects, but it can be lucrative. Almost everyone has a need for dry cleaning occasionally, and many professionals use the service weekly.

Though the industry has declined slightly over the last decade, largely due to consumers buying more low-maintenance clothing, dry cleaning still brings in $9 billion in annual revenue in the United States alone, according to a 2015 IBIS World report. The industry employs nearly 150,000 nationwide.

Many dry cleaning businesses are still mom-and-pop shops, but there are a number of franchises from which to choose if you don’t want to start from scratch. The benefits of starting a franchise include instant name recognition, credibility and assistance in the startup process.

Top Dry Cleaning Franchises - Costs and Requirements

As with franchises in all industries, there are financial requirements dry cleaning franchisees must meet to be considered, including a minimum net worth and a minimum liquid assets (cash). There is an initial franchise fee that usually ranges from $15,000 to $50,000, and there are ongoing fees that include monthly royalties and advertising, both of which are calculated as a percentage of gross sales in most cases.

Below is a cost breakdown for some of the largest dry cleaning franchises in the country, according to Entrepreneur’s 2016 Franchise 500, a ranking of the 500 best franchises in the United States.

Lapels

• Total initial investment: $81,502-$529,911
• Net worth requirement: $100,000
• Liquid assets requirement: $40,000-$80,000
• Initial franchise fee: $15,000-$25,000
• Royalties: 5% of monthly sales
• Advertising: 2% of monthly sales
• Financing: Available through third-party sources with company assistance
• Discounts: 20% off franchise fee for veterans

Martinizing Dry Cleaning

• Total initial investment: $445,600-$675,100
• Net worth requirement: $500,000
• Liquid assets requirement: $150,000
• Initial franchise fee: $69,500
• Royalties: 5% of monthly sales
• Advertising: 0.1% of monthly sales
• Discounts: $5,000 off franchise fee for veterans
• Additional information: Specializes in green cleaning

Dryclean USA

• Total initial investment: $261,500-$606,500
• Net worth requirement: $250,000
• Liquid assets requirement: $100,000-$125,000
• Initial franchise fee: $30,000
• Royalties: $6,900 per year
• Financing: In-house financing to cover the franchise fee, startup costs and equipment, as well as third-party sources to cover inventory, payroll service and accounts receivable
• Discounts: 25% off franchise fee for veterans

Comet Cleaners

• Total initial investment: $100,000-$794,500
• Net worth requirement: $200,000
• Liquid assets requirement: $50,000
• Initial franchise fee: $15,000-$30,000
• Royalties: 5% of monthly sales

Tide Dry Cleaners

• Total initial investment: $632,600-$1,460,300
• Net worth requirement: $1 million
• Liquid assets requirement: $500,000
• Initial franchise fee: $20,000-$50,000
• Royalties: 6.5% of monthly sales
• Advertising: 4% of monthly sales
• Financing: Available through third-party sources with company assistance to cover startups costs, franchise fee, inventory and equipment
• Discounts: Various incentives available for all new franchisees

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