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Martinizing Dry Cleaning Franchise Review (2019)

Martinizing Dry Cleaning  Franchise Background 

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.

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 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

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

Franchise Threats

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 Cleaning Franchise?

Martinizing Dry Cleaning Franchise cost ranges from $419,650 to $730,525 according to the 2019 FDD.

Cost TypesAmount (in USD)When DueTo Whom Payment is to Be Made
LowHigh
Franchise Fee$69.500$69.500Upon signing FAFranchisor
Plant Purchse300.000450.000Upon purchase of your dry cleaning and laundry plantThird Party
Machinery and Equipment015.000Immediately upon your receieptThird Party
Basic Operating Supplies2.3002.300Immediately upon your receiptThird Party
Initial Package Fee7.50021.000Prior to completion to the Martinizing Training ProgramMartinizing
Site Selection Fee5002.000Immediately upon your receiptThird Party
Shipping and Taxes for Initial Package Items1001.525As part of the initial Package Fee payments or, immediately upon receipt of invoiceMartinzing or Third Party
Equipment Installation, Training and Temporary Storage01.200Immediately upon your receiptContractors, Suppliers, Manufacturers
Security and Utility Deposits for Leased Franchised Location/Martinizing Store and Business Licenses05.000Upon signing Lease or as agreedLessor, Utilities, Government Agencies
First Three Month’s Rent for Leased Franchised Location/Martinizing Store10.00015.000As specified in LeaseLessor
Leasehold Improvements020.000Before OpeningTradesmen, Contractors
Rebranding17.00025.000Before OpeningTradesmen, Contractors
Vehicle Lease or Purchase Payments for First Month02.000Before OpeningThird Parties
Travel, Lodging, Expense, and Salary, if any, of Persons Attending Martinizing Training Program5003.000Before and During Martinizing Training ProgramAirlines, Hotels, Restaurants, Manaing Person or other representatives of your  Franchised Business
Dry Cleaning Solvent License Fee03.000Before OpeningSolvent Distributor
Legal, Accounting and Loan Fees2.0008.000As AgreedLawyers, Accountants, Financial Institutions
Insurance2501.000Depends on Insurance AgencyThirs Parties
Computer Hardware and Software04.000Before OpeningThird Parties
Point of Sale System02.000Before OpeningThird Party Vendors and Suppliers
General Business Supplies010.000As incurredMartinizing, Vendors, Suppliers, Employees, Utilities
Additional Funds – 3 months10.00070.000As IncurredThird Parties

Total                                                                              $419.650           $730.525

Cost TypesAmount (in USD)When DueTo Whom Payment is to Be Made
LowHigh
Franchise Fee$69.500$69.500Upon signing FAFranchisor
Drop Store Purchase50.000140.000Upon purchase of your dry cleaning and laundry plantThird Party
Machinery and Equipment00Immediately upon your receieptThird Party
Basic Operating Supplies2.3002.300Immediately upon your receiptThird Party
Initial Package Fee7.50021.000Prior to completion to the Martinizing Training ProgramMartinizing
Site Selection Fee5002.000Immediately upon your receiptThird Party
Shipping and Taxes for Initial Package Items1001.525As part of the initial Package Fee payments or, immediately upon receipt of invoiceMartinzing or Third Party
Equipment Installation, Training and Temporary Storage01.200Immediately upon your receiptContractors, Suppliers, Manufacturers
Security and Utility Deposits for Leased Franchised Location/Martinizing Store and Business Licenses03.000Upon signing Lease or as agreedLessor, Utilities, Government Agencies
First Three Month’s Rent for Leased Franchised Location/Martinizing Store6.0009.000As specified in LeaseLessor
Leasehold Improvements05.000Before OpeningTradesmen, Contractors
Rebranding17.00025.000Before OpeningTradesmen, Contractors
Travel, Lodging, Expense, and Salary, if any, of Persons Attending Martinizing Training Program2501.500Before and During Martinizing Training ProgramAirlines, Hotels, Restaurants, Manaing Person or other representatives of your  Franchised Business
Legal, Accounting and Loan Fees2.0008.000As AgreedLawyers, Accountants, Financial Institutions
Insurance250400Depends on Insurance AgencyThirs Parties
Computer Hardware and Software04.000Before OpeningThird Parties
Point of Sale System02.000Before OpeningThird Party Vendors and Suppliers
General Business Supplies03.000As incurredMartinizing, Vendors, Suppliers, Employees, Utilities
Additional Funds – 3 months5.00020.000As IncurredThird Parties

Total                                                        $160.400     $318.425

RoyaltyAd-Fund
6%1%

 

How Much does a Martinizing Dry Cleaning Franchise make?

QuestionTotal # of RespondentsAverageHighLowMedianNumber and Percentage that Attained or Exceeded the Average
Number of Plant Stores211,29311,004 (19%)
Number of Drop Stores210,43300,005 (24%)
Monthly Gross Sales21$73.518$240.407$21.171$52.6326 (29%)
Monthly Labor Cost21$33.073$97.430$4.693$22.7226 (29%)
Monthly Rent21$8.969$17.077$3.129$8.7059 (43%)
Monthly Debt Service 21$3.508$13.750$0$2.8727 (33%)
Discretionary Cash Flow19$11.707$59.000-$6.882$9.1677 (37%)
QuestionTotal # of RespondentsAverageHighLowMedianNumber and Percentage that Attained or Exceeded the Average
Route Gross Sales16$24.357$140.320$5.000$13.6124 (25%)
QuestionTotal # of RespondentsAverageHighLowMedianNumber and Percentage that Attained or Exceeded the Average
Annual Gross Sales Per Drop Store7$309.722$1.400.000$145.000$223.7692 (29%)
Annual Labor Cost Per Drop Store6$106.490$496.000$37.000$73.7912 (33%)
Annual Rent Cost Per Drop Store7$34.696$50.400$25.000$35.4004 (57%)
QuestionTotal # of RespondentsAverageHighLowMedianNumber and Percentage that Attained or Exceeded the Average
Annual Gross Sales Per Plant Store17$510.691$1.600.000$250.000$439.0002 (29%)
Annual Labor Cost Per Plant Store15$181.732$600.000$22.000$160.0002 (33%)
Annual Rent Cost Per Plant Store16$62.478$145.526$37.500$55.7384 (57%)
QuestionTotal # of RespondentsAverageHighLowMedianNumber and Percentage that Attained or Exceeded the Average
Average Plant Store Ticket16$25,85$38,00$13,00$25,006 (38%)
Average Route Services Ticket13$29,69$46,00$14,00$32,007 (54%)
 QuestionAverageHighLowMedianNumber and Percentage that Attained or Exceeded the Average
 Number of Lockers                           9,6                               7                            22                                                           12 (33%)
 Annual Gross Locker Sales$5.375$1.698$19.594$4172 (33%)
 Gross Sales Per Locker$674$500$1.306$2352 (33%)
 Months Lockers were in Operations during Calendar year 2017                           7,5                           6,5                            12                                                           32 (33%)
Acquisition CostAcquisition Gross SalesAcquisition 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$90.0001 5,5
$50.000$60.000$0 17,5
$415.000$604.000$194.0001 5,5
$25.000$110.000$35.000 16,5
$110.000$318.864$71.3331 3,5
$190.000$372.000$44.366 13,5
$750.000$683.000$50.0001 7,5
$299.000$438.019$118.0001 11,5
$275.000$511.719$145.268 25,5
$565.000$686.000$190.000119,5
$300.000$380.000$01 11,5
$245.000$234.554$70.1901 11,5
$575.000$1.300.000$120.000215,5
$444.000$464.000$130.000116,5
$190.000$238.630$26.4821 1,5
$250.000$335.000$80.0001 9,5
$1.050.000$1.037.000$260.0003 3,5
$370.000$540.000$79.7971 11,5
$520.000$720.000$225.0001110,5
$810.000$774.396$204.254116,5
$225.000$233.760$17.8851 3,5
$325.000$370.000$20.0002 7,5
$163.000$299.140$52.4501 11,5

Interested in Seeing how Martinizing Dry Cleaning Franchise compares to other Cleaning and Maintenance franchises? Download our Cleaning and Maintenance franchise guide below!

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