Published on
6 Apr 2021
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Time
5 min read
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Last update by
25 Jan 2024
Martinizing Dry Cleaning Franchise Review (2021)
Martinizing Dry Cleaning is dedicated to making their customer’s buying experience seamless. The goal is to make customer’s life easier by delivering quality garment care along with new technologies. They are the largest and best known dry cleaners in the U.S.
Martinizing Dry Cleaning Franchise Background
They provide dry cleaning, shirt laundry, alterations, wash & fold, bulk laundry, leather cleaning, wedding gown cleaning and wedding gown preservation in addition to many bulky household items such as comforters
Martinizing Dry cleaning offers counter service, pick-up and delivery service (residential and commercial), lockers and on demand (via smartphone)
Management Team
Martinizing Dry Cleaning was founded in 1949 as a family-owned business. Martin Franchises which is the parent company, is the largest dry cleaning franchise in the United States and has over 450 franchised stores.
In 2014, the company was acquired by The Huntington Company. They are based in Berkley, Michigan, and are a multi-concept franchisor focused on providing the absolute best textile restoration and retail dry cleaning and laundry services. They are operators, giving them the experience, core competencies and leadership capabilities and enable them to provide world-class support to help their companies grow and succeed in their local market.
Franchise Cleaning and Maintenance Industry Analysis
Franchise Strengths
- Established franchisor that provides strong training and support
- Recurring revenue model where most clients become repeat customers
- Brand name is very recognized in all demographic groups
- Recession-proof industry
- It is a need based service rather than a luxury
Franchise Weaknesses
- Labor-intensive industry, may de difficult to find qualified employees
- Very mature industry with many competitors
Cleaning and Maintenance Industry Franchise Opportunities
- The dry cleaning industry is worth $9 billion dollars in the U.S. (Martinizing brochure)
- Territories available all over the U.S.
- No other competitors as large as Martinizing
- Ability to buy existing locations, convert them to Martinizing, then expand in the area by creating “routes”
- Technology utilization will create more opportunities for revenue growth
Threats in the Cleaning and Maintenance Industry Franchise Market
- Depending on the city, the market might have many competitors
- Potential for employee turnover if employee is not the right fit for business model
- People may choose to wash and clean clothes at home
How Much is a Martinizing Dry Cleaners Franchise?
Martinizing Dry Cleaning Franchise cost ranges from $419,650 to $730,525 according to the 2019FDD
Cost Types | Amount (in USD) | When Due | To Whom Payment is to Be Made | |
Low | High | |||
Franchise Fee | $69,500 | $69,500 | Upon signing FA | Franchisor |
Plant Purchse | 300,000 | 450,000 | Upon purchase of your dry cleaning and laundry plant | Third Party |
Machinery and Equipment | 0 | 15,000 | Immediately upon your receiept | Third Party |
Basic Operating Supplies | 2,300 | 2,300 | Immediately upon your receipt | Third Party |
Initial Package Fee | 7,500 | 21,000 | Prior to completion to the Martinizing Training Program | Martinizing |
Site Selection Fee | 500 | 2,000 | Immediately upon your receipt | Third Party |
| 100 | 1,525 | As part of the initial Package Fee payments or, immediately upon receipt of invoice | Martinzing or Third Party |
| Equipment Installation, Training and Temporary Storage | 0 | 1,200 | Immediately upon your receipt | Contractors, Suppliers, Manufacturers |
| Security and Utility Deposits for Leased Franchised Location/Martinizing Store and Business Licenses | 0 | 5,000 | Upon signing Lease or as agreed | Lessor, Utilities, Government Agencies |
| First Three Month’s Rent for Leased Franchised Location/Martinizing Store | 10,000 | 15,000 | As specified in Lease | Lessor |
| Leasehold Improvements | 0 | 20,000 | Before Opening | Tradesmen, Contractors |
| Rebranding | 17,000 | 25,000 | Before Opening | Tradesmen, Contractors |
| Vehicle Lease or Purchase Payments for First Month | 0 | 2,000 | Before Opening | Third Parties |
| Travel, Lodging, Expense, and Salary, if any, of Persons Attending Martinizing Training Program | 500 | 3,000 | Before and During Martinizing Training Program | Airlines, Hotels, Restaurants, Manaing Person or other representatives of your Franchised Business |
| Dry Cleaning Solvent License Fee | 0 | 3,000 | Before Opening | Solvent Distributor |
| Legal, Accounting and Loan Fees | 2,000 | 8,000 | As Agreed | Lawyers, Accountants, Financial Institutions |
| Insurance | 250 | 1,000 | Depends on Insurance Agency | Thirs Parties |
| Computer Hardware and Software | 0 | 4,000 | Before Opening | Third Parties |
| Point of Sale System | 0 | 2,000 | Before Opening | Third Party Vendors and Suppliers |
| General Business Supplies | 0 | 10,000 | As incurred | Martinizing, Vendors, Suppliers, Employees, Utilities |
| Additional Funds – 3 months | 10,000 | 70,000 | As Incurred | Third Parties |
| $419,650 | $730,525 | ||
Estimated Initial Investment – Drop Store Franchise
| Cost Types | Amount (in USD) | When Due | To Whom Payment is to Be Made | |
|---|---|---|---|---|
| Low | High | |||
| Franchise Fee | $69,500 | $69,500 | Upon signing FA | Franchisor |
| Drop Store Purchase | 50,000 | 140,000 | Upon purchase of your dry cleaning and laundry plant | Third Party |
| Machinery and Equipment | 0 | 0 | Immediately upon your receiept | Third Party |
| Basic Operating Supplies | 2,300 | 2,300 | Immediately upon your receipt | Third Party |
| Initial Package Fee | 7,500 | 21,000 | Prior to completion to the Martinizing Training Program | Martinizing |
| Site Selection Fee | 500 | 2,000 | Immediately upon your receipt | Third Party |
| Shipping and Taxes for Initial Package Items | 100 | 1,525 | As part of the initial Package Fee payments or, immediately upon receipt of invoice | Martinzing or Third Party |
| 0 | 1,200 | Immediately upon your receipt | Contractors, Suppliers, Manufacturers |
| Security and Utility Deposits for Leased Franchised Location/Martinizing Store and Business Licenses | 0 | 3,000 | Upon signing Lease or as agreed | Lessor, Utilities, Government Agencies |
| First Three Month’s Rent for Leased Franchised Location/Martinizing Store | 6,000 | 9,000 | As specified in Lease | Lessor |
| Leasehold Improvements | 0 | 5,000 | Before Opening | Tradesmen, Contractors |
| Rebranding | 17,000 | 25,000 | Before Opening | Tradesmen, Contractors |
| Travel, Lodging, Expense, and Salary, if any, of Persons Attending Martinizing Training Program | 250 | 1,500 | Before and During Martinizing Training Program | Airlines, Hotels, Restaurants, Manaing Person or other representatives of your Franchised Business |
| Legal, Accounting and Loan Fees | 2,000 | 8,000 | As Agreed | Lawyers, Accountants, Financial Institutions |
| 250 | 400 | Depends on Insurance Agency | Thirs Parties |
| Computer Hardware and Software | 0 | 4,000 | Before Opening | Third Parties |
| Point of Sale System | 0 | 2,000 | Before Opening | Third Party Vendors and Suppliers |
| General Business Supplies | 0 | 3,000 | As incurred | Martinizing, Vendors, Suppliers, Employees, Utilities |
| Additional Funds – 3 months | 5,000 | 20,000 | As Incurred | Third Parties |
| Total | $160,400 | $318,425 | ||
| Royalty | Ad-Fund |
| 6% | 1% |
How Much does a Martinizing Dry Cleaning Franchise Make?
| Question | Total # of Respondents | Average | High | Low | Median | Number and Percentage that Attained or Exceeded the Average |
| Number of Plant Stores | 21 | 1.29 | 3 | 1 | 1.00 | 4 (19%) |
| Number of Drop Stores | 21 | 0.43 | 3 | 0 | 0.00 | 5 (24%) |
| Monthly Gross Sales | 21 | $73,518 | $240,407 | $21,171 | $52,632 | 6 (29%) |
| Monthly Labor Cost | 21 | $33,073 | $97,430 | $4,693 | $22,722 | 6 (29%) |
| Monthly Rent | 21 | $8,969 | $17,077 | $3,129 | $8,705 | 9 (43%) |
| Monthly Debt Service | 21 | $3,508 | $13,750 | $0 | $2,872 | 7 (33%) |
| Discretionary Cash Flow | 19 | $11,707 | $59,000 | -$6,882 | $9,167 | 7 (37%) |
| 16 | $24,357 | $140,320 | $5,000 | $13,612 | 4 (25%) |
| Annual Gross Sales Per Drop Store | 7 | $309,722 | $1,400,000 | $145,000 | $223,769 | 2 (29%) |
| Annual Labor Cost Per Drop Store | 6 | $106,490 | $496,000 | $37,000 | $73,791 | 2 (33%) |
| Annual Rent Cost Per Drop Store | 7 | $34,696 | $50,400 | $25,000 | $35,400 | 4 (57%) |
| Annual Gross Sales Per Plant Store | 17 | $510,691 | $1,600,000 | $250,000 | $439,000 | 2 (29%) |
| Annual Labor Cost Per Plant Store | 15 | $181,732 | $600,000 | $22,000 | $160,000 | 2 (33%) |
| Annual Rent Cost Per Plant Store | 16 | $62,478 | $145,526 | $37,500 | $55,738 | 4 (57%) |
| Average Plant Store Ticket | 16 | $25.85 | $38.00 | $13.00 | $25.00 | 6 (38%) |
| 13 | $29.69 | $46.00 | $14.00 | $32.00 | 7 (54%) |
| Question | Average | High | Low | Median | Number and Percentage that Attained or Exceeded the Average |
|---|---|---|---|---|---|
| Number of Lockers | 9,6 | 7 | 22 | 1 | 2 (33%) |
| Annual Gross Locker Sales | $5,375 | $1,698 | $19,594 | $417 | 2 (33%) |
| Gross Sales Per Locker | $674 | $500 | $1,306 | $235 | 2 (33%) |
| Months Lockers were in Operations during Calendar year 2017 | 7.5 | 6.5 | 12 | 3 | 2 (33%) |
| Acquisition Gross Sales | Acquisition Discretionary Cash Flow | # Plant Stores Acquired | # Drop Stores Acquired | # Months between Signing Franchise Agreement and Closing (or Scheduling of Closing) on Acquisition |
|---|---|---|---|---|---|
| $300,000 | $350,000 | $90,000 | 1 | 5.5 | |
| $50,000 | $60,000 | $0 | 1 | 7.5 | |
| $415,000 | $604,000 | $194.000 | 1 | 5.5 | |
| $25,000 | $110.000 | $35.000 | 1 | 6.5 | |
| $110,000 | $318,864 | $71.333 | 1 | 3.5 | |
| $190,000 | $372,000 | $44.366 | 1 | 3.5 | |
| $750,000 | $683,000 | $50.000 | 1 | 7.5 | |
| $299,000 | $438,019 | $118.000 | 1 | 11.5 | |
| $275,000 | $511,719 | $145.268 | 2 | 5.5 | |
| $565,000 | $686,000 | $190.000 | 1 | 1 | 9.5 |
| $300,000 | $380,000 | $0 | 1 | 11.5 | |
| $245,000 | $234,554 | $70.190 | 1 | 11.5 | |
| $575,000 | $1,300,000 | $120.000 | 2 | 1 | 5.5 |
| $444,000 | $464,000 | $130.000 | 1 | 1 | 6.5 |
| $190,000 | $238,630 | $26.482 | 1 | 1.5 | |
| $250,000 | $335,000 | $80.000 | 1 | 9.5 | |
| $1,050,000 | $1,037,000 | $260.000 | 3 | 3.5 | |
| $370,000 | $540,000 | $79.797 | 1 | 11.5 | |
| $520,000 | $720,000 | $225.000 | 1 | 1 | 10.5 |
| $810,000 | $774,396 | $204.254 | 1 | 1 | 6.5 |
| $225,000 | $233,760 | $17.885 | 1 | 3.5 | |
| $325,000 | $370,000 | $20.000 | 2 | 7.5 | |
| $163,000 | $299,140 | $52.450 | 1 | 11.5 |
