Dry Cleaning Franchise & Business Opportunities
Dry Cleaning Industry
General Dry Cleaning Industry
There are currently over 34,000 dry cleaning businesses / units. The majority of the dry cleaning and laundry services are in the retail space which accounts for 63.6% of the market. The dry-cleaning businesses is trending towards having one owner own multiple locations, as businesses are trying to consolidate as the dry-cleaning industry is trending slowly downward.
Home Services Industry Trends
The demand for online home services has been increasing, contributing to the growth of the industry. For this reason, companies within the Home Services industry are focusing on technology to improve customer service and adapt to the rise in the adoption of smartphones. Smartphone technology can be used to influence consumers’ buying decisions, their strategies, business activities, and lifestyle. Moving towards technology, investing in cybersecurity, and managing multiple client communication channels are extremely important factors to guarantee customer satisfaction.
Key Home Services Industry Numbers
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Paid-in-Full Rate
The Paid-in-Full Rate is when the SBA loan is fully paid off by the small business owner including interest, indicating financial strength.
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Charged Off Rate
The Charged Off Rate is the SBA loan default rate where loans have no confidence in being paid off by the small business owner.
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:1
SBA Loan Success Ratio
For every 11 SBA loans fully paid including interest, 1 SBA loan was unable to be paid back, or defaulted.
-SBA Loan Data from 2010-2019
-Non-Franchise Businesses taken into account: 8,966
Dry Cleaning Industry Trends:
Due to the shift of working at home and the shift to a more casual workplace environment of not requiring suits, the dry-cleaning demand has diminished. However, large dry cleaners are beginning to take over the market share while smaller mom and pops are closing. Therefore, this seems like a good indication for established franchise brands to expand their market share. The dry cleaning industry now needs to shift and innovate to meet the demands of convenience that is coveted by millennials.
Profit and Loss Breakdown (Based on Industry Averages in Home Services):
Business Breakdown:
Average Profit Margin: 8.7%
Revenue per employee: $66,100
Average Number of Employees: 4.0
Average Wages per Employee: $22,053
Industry Costs
Profit: 8.7%
Wages: 33.5%
Purchases 15%
Depreciation: 2.4%
Marketing: 1.1%
Rent & Other Utilities: 18.5%
Other: 20.8%
Martinizing Dry Cleaning Franchise Example:
Martinizing Dry Cleaners offers retail dry cleaning and laundry services, as well laundry pickup and delivery services. Martinizing Dry Cleaning is a franchise concept in the Home Services industry. The company was founded in 1949 and there are currently 193 franchise units.
Initial Franchise Fee:
$72,000-$92,025
Total Cost of Franchise:
The minimum amount required for a franchisee to invest is $160,400 and can go all the way up to $730,525.
Royalty Fee:
6%
Average Home Services Franchise Industry Percentage Fees
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Royalty Fee
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Marketing Fee
Standard Home Services Franchise Industry Investment
$
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K
This metric is the standard industry investment amount for a single unit franchise investment in this industry. Our research and analytics team analyzed over 116 franchise concept investment breakdowns in order to calculate this figure.
0
%
Paid-in-Full Rate
The Paid-in-Full Rate is when the SBA loan is fully paid off by the franchisee including interest, indicating financial strength.
0
%
Charged Off Rate
The Charged Off Rate is the SBA loan default rate where loans have no confidence in being paid off by the franchisee.
0
:1
SBA Loan Success Ratio
For every 11 SBA franchise loans fully paid including interest, 1 SBA loan was unable to be paid back, or defaulted.
-SBA Loan Data from 2010-2019
-Franchise Businesses taken into account: 401
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