Zips Dry Cleaner

Press Kit
What began in 1996 as eight dry cleaners in the Baltimore-Washington area has evolved into the
largest chain of retail dry cleaners in the Mid-Atlantic region. Today, ZIPS is operating more than 40
stores and growing strong.
Professional Cleaning. Unbeatable Prices.
Dry cleaning is not a new concept; dry cleaning the ZIPS way, is. It's simply "Professional Cleaning.
Unbeatable Pricing." ZIPS’ successful business model is based on a concept revolutionary to the
industry and clearly in high demand to today's dry cleaning customer – dry cleaning that is ready for
pick-up the same day it's dropped off and all for a flat-rate price
At ZIPS, a customer can have any item of clothing dry cleaned for $2.29. It doesn’t matter if the item
is a necktie, a blouse or a pair of pants, the price is $2.29 – that's less than half the price of today's
industry average. Plus, garments are claned on-site, allowing for same-day pickup – "in by 9, out by
5."
In addition, in today’s increasingly “green-conscious" society, ZIPS cuts 90% of the waste of the
average cleaner, using organic dry cleaning solution and offering hanger and bag recycling at every
location.
What makes ZIPS a better choice for all your dry cleaning needs?
When we say we are "one price dry cleaners" we
mean it. Every garment, every day, always just
$2.29.
Our "In by 9, Out by 5" promise is made
possible by operating our plants on
premise inside each ZIPS location.
Before being green was trendy, we were setting our own eco-friendly
standards. Every location has hanger recycling and our plastic bags are
100% biodegradable. Plus, we continue to cut down on waste and water
usage every year. It's all proof that you can be green without spending it!
Our customers know they can always expect two things: Professional
Cleaning. Unbeatable Pricing. We go the extra mile, which is why our
customers don't mind driving an extra mile or two to get to a ZIPS
location.
ZIPS
LOCATIONS
Maryland
Pensylvania
Annapolis
Baltimore
Baltimore (Harbor East)
Catonsville
College Park
Columbia
Elkridge
Essex
Frederick
Gaithersburg
Gambrills
Germantown
Glen Burnie
Kent Island
Lanham
Laurel
Pasadena
Pikesville
Rockville
Scaggsville
Silver Spring
Timonium
Towson
Bensalem
Jenkintown
King of Prussia
Lancaster
Pittsburgh
Warminster
York
Virginia
Alexandria
Chantilly
Dumfries
Fairfax
Fairfax Circle
Falls Church
Fredericksburg
Innsbrook
Manassas
Norfolk
Stafford
Sterling
Woodbridge
Washington, DC
Washington, DC (Hechinger Mall)
Washington, DC (Van Ness)
We can make all of the dry cleaning promises in the world but it only
matters if they translate into satisfied customers.
“ZIPS has saved me SO much money on my dry cleaning bills. Spending $5-7 per garment just isn't
an option when you don't have much cash in your paychecks. ZIPS does a great job and only charges
$2.29 per piece. I just moved, but I'll take the metro two extra stops just to keep using ZIPS!"
Lisa M
Washington D.C.
"I would like to take a moment and thank you for the wonderful service I received at the Falls Church,
VA location yesterday. I had some concerns to work out and the staff, managers and owners were
very accommodating and helpful. I appreciate the time they spent with me to explain my confusion
and work out my problem. It was great customer service. Thank you again!"
Cate M
Virginia
"I come to ZIPS twice a week because you save me tons of money. In fact, I think everyone should
come here because of the prices, the friendly people, and the same day service."
Sharon A
Maryland
"I want to take this opportunity to thank ZIPS, for the cleaning services you donated. Please know the
entire Women's Board is very appreciative. The funds we raise go to benefit and improve patient care
at the Johns Hopkins Hospital. You and your employees have helped to make our community a better
place. Best wishes for a happy holiday season."
Dorothy Truitt
Co-Chair, Best Dressed Sale 2005
"I dropped off some Army uniforms, sweaters, a jacket and some shirts to test out ZIPS for myself. I
was 110% satisfied with the results! Thank you very much, and I'd also like to compliment Nick A. for
his great service, both as my order taker, and the final person. He was very knowledgeable about how
I wanted each item."
Elliott P
Timonium, MD
Dry cleaning scene gets fierce competition
By Joshua Gordon | May 6, 2016
There is no magic to dry cleaning, at least according to Andy Cucchiara, ZIPS
Dry Cleaners vice president of franchise operations. ZIPS local franchisee Bart
Casiello is set to open his second…
AMERICAN
drycleaner
ZIPS Signs 110-Unit Franchise Agreement in Southern California
Will be company’s first expansion outside its Mid-Atlantic hub
ZIPS Dry Cleaners has signed an area development agreement with ZDry LLC to build 110 locations
in Southern California over the next 15 years.
The deal marks the brand’s largest deal to date and first expansion outside of its Mid-Atlantic hub,
where the franchise has more than 40 stores.
“We are thrilled to team with such an experienced and prolific partner as ZDry to introduce our brand
to Southern California,” says ZIPS Vice President of Development Aaron Goldberg. “The rapid growth
we continue to experience proves that the ZIPS franchise investment resonates and continually
attracts high-caliber and savvy developers.”
ZDry LLC will develop the dry cleaners throughout Los Angeles
and San Diego, the first two of which are projected to open in
Los Angeles later this year.
No strangers to franchising, ZDry’s partners own and operate 10
Planet Fitness gyms in the Los Angeles area, with several more
under development.
“What attracted us most to ZIPS was the company’s successful
business model that is based on a concept revolutionary to the
industry and clearly in high demand to today’s drycleaning
customer – dry cleaning that is ready for pickup the same day
it’s dropped off and all for a flat-rate price,” says Shawn Bishop,
one of the managing partners for ZDry.
“Based on our experience in the marketplace, I’m confident ZIPS will be a huge success and quickly
become the go-to place for dry cleaning in the region.”
He sees a lot of similarities between Planet Fitness and ZIPS, in that both are helping consumers
become more educated when it comes to their spending.
“More than 20 years ago, before Planet Fitness changed the fitness landscape with its more
affordable offering, very few people blinked an eye when they were charged $50 or more for their
monthly gym membership,” he says. “Today, ZIPS is doing the same in their industry. Everyone
needs dry cleaning in some capacity. The real question customers should ask themselves is, ‘Would I
rather pay $50-$60 for 10 pieces to be dry-cleaned, or $19.90 for the same 10 pieces and have it
done in one day?’”
In addition, in today’s increasingly “green-conscious” society, ZIPS has invested in a closed-cleaning
system that reduces waste, uses biodegradable plastic bags and recycles hangers.
To further augment the company’s growth, ZIPS plans to open as many as 15 new stores this year
and is actively seeking multi-unit franchisees to help develop additional locations throughout the
United States.
Facing your franchising fears
IS THE FRANCHISE MODEL A GOOD FIT FOR YOUR BUSINESS?
By Alyssa Hurst │ January 2016
Your business has been running smoothly for years, you’ve opened
several other company-owned stores, and people ask you every day
how they can get involved with your brand. Your company has
reached a turning point in its lifecycle of growth. You could hold
steady with the stores you have, expand with a company-owned
model — or you could consider franchising.
Reid Bechtle, CEO
ZIPS Dry Cleaners
For most CEOs, franchising is a scary word. It comes shrouded in
baffling regulations, endless documents and so many other moving
parts. Ultimately, many decide that it’s not worth the hassle. But for
those who do dive into the world of franchising, there are rewards to
be found — so long as they do it right.
Who should franchise?
When you look around any city, the obvious franchises stand out.
Food chains make up a great majority of the franchising industry, but
they aren’t the only businesses that can benefit from this growth
model. FranNet franchise business consultant Heather Rosen works
with franchisees across the DC area. “There are over 90 different
industries where you find franchises,” she says. “That’s surprising to a
lot of people.”
In fact, franchises are prominent in almost any sector of the market,
from the auto and retail industries all the way to fitness and B2B.
Some franchisees in the service category are even able to work from
home.
Who shouldn’t franchise?
Though industry shouldn’t play a restricting role in the world of
franchising, according to experts, a few things should. A company
starting out needs to have a few ducks in a row before it can even
think about creating a franchise system. James A. Goniea, partner at
Philadelphia’s Wiggin and Dana, says, “If someone comes to me and
says, ‘Look, I’m thinking of going into franchising. Do you think this
will work for me?’ the things I’m looking for are: Do you have three or
“Franchising seems to get a
bad rap because in a lot of
cases, it’s ‘Anybody can do
it. Come on in. Make a lot of
money.’ Unfortunately, that’s
not the case. It’s darn hard
work. In today’s day and
age, it’s not about the
money. You have to be the
diplomat, you have to be the
leader, you have to be the
motivator, you have to be
able to understand how to
get people excited. It cannot
just be about a job. The
thing I like about it is that it
is the American dream. It’s
an opportunity for somebody
to come in that wants to
work hard, put their heart
and soul into it, have some
passion and make a better
life for themselves.”
four open units under your brand, and have you shown that it can work in different locations and in different
circumstances?”
In addition to proven success in the industry, having a reproducible model is key, says Michael Einbinder,
founding partner of New York’s Einbinder & Dunn, LLP. A business that is very complex, detailed and
unique often doesn’t find great success in franchising. “The look and the trademark, the décor, the way the
restaurant looks — those things are critical because people need to see the franchise units as being the
same as the existing units,” he says.
Another caution: Don’t take on franchising if you aren’t ready for some hard work, says Elizabeth D. Sigety,
partner at Fox Rothschild LLP. “People think you just have to put together a few contracts and then people
are going to run your business and pay you royalties, and it’s going to be simple. But franchising really is
complex. It’s something that has to be thought about.” Sigety adds, “To really expand into a system takes a
lot of work and planning.”
Another major element of bringing the franchise model to fruition is capital. Sigety calls money one of the
“basics” when it comes to franchising, saying, “I’ve had situations where potential new clients come to me
and, once I see the finances of their company and locations, they’re not doing that well. So, how are they
going to spread the wealth? They need capital. The franchisors need capital because they are going to
grow.”
A plan for growth is another important duck that new franchisors must keep in mind if they want to find
success. “You have someone that comes in with a fairly established brand, but their marketing plan leads
to, ‘Man, I want to roll out a hundred stores in the next 18 to 24 months.’ I’m usually running in the other
direction,” says Dr. K. Jameson Lawrence, Esq., founder and CEO of Baltimore’s BVFR & Associates,
LLC.
Facing your fears
The Federal Trade Commission regulates the sale of franchises, and each franchisor must prepare a
franchise disclosure document for potential franchisees. What’s more, many states have various additional
hoops through which franchisors must jump, and in a political landscape focused on the Affordable Care
Act and raising the minimum wage, experts like Goniea have taken note of a looming feeling that the
franchise model is under attack.
On top of all this, not every franchisee is going to be a stellar addition to the brand. “There’s always going
to be a couple of bad eggs out there. If you have hundreds or thousands of franchisees, somebody is not
going to be good at running a business,” Sigety says.
In the face of all of these well-founded reasons for trepidation, why is franchising still such a successful
model for growth?
There is a reason companies are willing to wade through state-by-state regulations and paperwork, and
place their brand in the hands of franchisees. Goniea sums it up: “Franchising is one of the most
successful business models that has ever been developed.”
Einbinder agrees: “I think it’s a great way of extending a brand and growing. That’s why people choose it.
You can open a lot more pizza places around the world if you’re doing it as a franchise than if you’re doing
it on your own.”
Franchising, when done right, can open doors to growth that some companies just can’t access on their
own.
Disrupting cleaners
BY DAVID FARKAS
Music, software, newspapers, retailing, travel and broadcast
industries have all been disrupted by startup competitors. Now
it’s dry-cleaning’s turn.
At least from a pricing perspective, that is. A 40-unit chain called
ZIPS Dry Cleaners charges a mere $2.29 to clean any item of
clothing. Larger items, like comforters, cost about $20. The low
prices set ZIPS apart from competitors, which often price
according to an item’s type, material and size.
To be sure, other disrupters have also jumped into the $11-billion
industry. A startup called Washio has created an Uber-like app
allowing customers to have clothing picked up and returned in a
relatively short period of time. After a private equity firm invested
$10.5 million two years ago, Washio has expanded to a halfdozen large cities. Washio, however, requires a $30 minimum
and a $5.99 delivery fee. Pricing is “market standard,” its website
says.
R&R Global Partners, a Philadelphia-based private equity firm,
approached Baltimore-based ZIPS differently. It agreed to open
more than 100 franchised units over the next half-dozen years or
so.
“Pricing has been all over the map. There’s been no consistency
in terms of price in any region,” declares Managing Partner Kevin
Graff, who estimates ZIPS pricing is roughly 40 percent less than
traditional dry cleaners.
Graff says the concept’s in-by-9-out-by-5 service and pay at drop-off also attracted the partners. A fast
turnaround appeals to customers and the upfront payment improves cash management. To accomplish such
quick service, each ZIPS includes its own dry-cleaning plant. Many businesses send clothing to a third-party dry
cleaner.
Yet ZIPS’ biggest attraction is the fact it can be “plugged into” a piece of real estate R&R already owns — and
possibly alongside a Planet Fitness, which the firm also franchises as a master partner. “We do multi-unit
development and rollout and we have a pretty active portfolio real estate fund,” he says.
Graff won’t disclose unit economics or a royalty fee, saying only the stores provide a healthy return on
investment. “ZIPS is attractive from its ability to drive top line, yet lets us drive productivity within the system,” he
explains. The franchisor’s Item 19, meanwhile, offers top line average of $1.1 million with cost of goods sold at
$116,190 for 35 franchised units during calendar 2014.
Capital Business
Seeking national market, ZIPS sells rights to 104 franchises
By Thomas Heath | Saturday, May 9, 2015
ZIPS, which calls itself the disrupter of dry
cleaners, took a big step toward being a
national chain this week when the
Greenbelt-based franchisor sold the rights
to 104 additional locations.
The buyer is ZDC Holdings, a
Pennsylvania-based private equity firm that
plans to start opening ZIPS throughout the
Mid-Atlantic and Midwest before the end of
June. Terms of the deal were not
disclosed.
ZIPS currently has 39 stores stretching
across Washington, Virginia and Maryland,
and as far west as Pittsburgh. ZIPS has
tried to distinguish itself in the market by
charging $1.99 for every garment.
“The name of our game is go get more
ZIPS up and be convenient to people,” said
ZIPS chief executive officer Reid Bechtle.
“Our five-year plan is to get 350 stores
across the country. There is room in this
business for everybody. The basic
business model is to be disruptive.”
Jon Simon, owner of high-end Parkway
Custom Drycleaning in Chevy Chase, Md,
said he wasn’t worried about lower priced
competition arguing her offers superior
service.
“Just like people who want to have a $1.99
hamburger every now and then, I don’t
think Morton’s is losing that $40 steak
because of that,” Simon said.
ZIPS began in the Washington area in
2002 when a group of independent dry
cleaners banded together. The company
was owned by 14 partners until 2013, when
JPB Capital of Columbia, Md., bought a
large portion of the chain and brought in
Bechtle, who had experience as a
turnaround artist, to run it.
“The original founders wanted to expand,
but they didn’t have the money,” Bechtle
said. “The founders were dry cleaners.
They needed a CEO who was going to be
full-time and have the primary responsibility
to grow the business.
Bechtle said each ZIPS store employs
between 20 and 30 people and cleans all
the garments on location instead of
sending them out to a central plant.
The average store cleans about 500,000
garments a year, Bechtle said. At $1.99
each, the average ZIPS store grosses just
above $1 million. The highest performer is
grossing nearly $3 million annually.
Bechtle said every ZIPS is profitable.
“The beauty of the business is there’s lots
of volume, no spoilage and people pay up
front, so we aren’t carrying receivables,”
Bechtle said. “When we drop into a market,
we try to find a market with lots of dry
cleaners. It tells us that it’s an area that
wants convenience. Dry cleaning is a habit
of convenience.”
Bechtle said the company is in talks with
investors in Texas, Nebraska, Florida, the
Carolinas and Canada about selling more
franchises.
Stores cost about $850,000 to build and
open. The first franchise costs $50,000 and
each subsequent location is $30,000.
Royalties are 10 percent of gross sales.
JPB Capital Partners specializes in lower,
middle-market companies, mostly in the
Mid-Atlantic and Southeast. It seeks to
invest in companies with revenues
between $10 and $100 million and in which
the firm’s principals have operating
experience.
TOP SHELF
Maryland-based dry cleaning chain plans massive
expansion
By Rebecca Cooper │ April 30, 2015
Greenbelt-based dry cleaning chain Zips Dry Cleaners
has signed a new franchise agreement that will add
more than 100 locations to its portfolio.
The new franchisee, ZDC Holdings, will open 104
locations during the next several years, with the first of
them opening within the second quarter of 2015,
according to Lev Davidson, the company’s operating
principal.
The strategy is in line with the goals that CEO Reid
Bechtle laid out in this 2013 executive profile, where
he said he aimed to open more stores in Virginia,
push further north into Pennsylvania and then add
New Jersey and Ohio to the geographic mix.
The expansion will bring Zips locations to 50 by the
end of 2015 and 80 by the end of 2017, according to
the company. The chain currently has a total of 39
stores, the majority in Maryland.
Zips has a one-price model for its dry cleaning
services, with any item costing $1.99 for cleaning, and
any shirt priced at just $1.39. The company was
founded in 1996 and has been franchising since 2006.
April 2015
Sustainable Success
Franchise businesses are stepping up their ecofriendliness as consumer demand for green,
sustainable products and practices grows. BY JASON DALEY
Just a few years ago, “going green” was often a marketing ploy or an expensive hit to the bottom line. But in the
past few years, improved technologies and customer demand have made thinking about sustainability a top
priority for businesses.
It’s true even in franchising, an industry that has not always been on the cutting edge of environmental progress.
Unlike large corporate-owned chains such as Walmart, which is making efforts to green its supply chain and
champion organic foods, or places such as Starbucks or Chipotle, which can afford the often expensive upfront
costs of implementing projects such as installing solar panels – most franchise systems are always focused on
the bottom line of their individual franchisees. Franchises have been hesitant to require hundreds of thousands
of franchisees to potentially compromise their profit margins by investing in green products or upgrading to
green practices.
But franchising is making strides, and the greening of the franchise world is accelerating as new technologies
that are cheaper and have a quicker return on investment come on the market. And, in fact, many franchises are
realizing that being environmentally conscious can be a great way to differentiate their brand from the
competition.
. . . Even businesses that might
have been considered lost
causes are making an effort.
“The dry-cleaning industry has
had a big black eye in terms of
being environmentally friendly,”
says Andy Cucchiara, vice
president of operations for
ZIPS, a Maryland-based drycleaning franchise with 40 units
that will triple in size over the
next three years. “We’re on
what we call an eco-endeavor.
It’s tough, but I think we’ve
made great strides. I don’t think
any dry-cleaner anywhere could
call itself green, but our efforts
makes a difference to our
franchise owners and
customers.”
Those initiatives include
using hydrocarbon-based
solvent requiring only about 10
percent the volume of
conventional cleaners in a
closed-loop system. They also
use biodegradable plastic bags
and instant hot water heaters
instead of energy-wasting
conventional heaters.
Those are all giant steps in
the right direction, but
Cucchiara says they still have a
way to go. “Our customers want
their clothes clean, but they
also want us to be ecologically
efficient as possible,” he says.
“We’re not trying to pull the
wool over anybody’s eyes by
saying we’re a green cleaner or
organic.”
While many industries claim
greening their systems is too
expensive, Cucchiara was
surprised at how much the
changes at ZIPS cost.
“Funny enough, it has not
increased costs at all. Costs are
the same or even more
competitive,” he says. “Of
course, we’re buying for a
whole system. As far as
franchise owners are
concerned, they’re all about it.
They know it’s what customers
want. The questions we ask
when we go to a store are ‘how
is this animal raised?’ or
‘what’s going into my body?’
This is really no different.
People are asking about what’s
going on the outside of their
bodies.”
The big innovations,
however, says Cucchiara, are
coming from franchisees, who
see making the company
greener as a differentiator and
potential way to pad the bottom
line. “Our franchisees are very
receptive to being green. We’ve
had some very savvy franchise
owners exploring solar energy,”
he says. “The best ideas always
come from inside the system,
from the folks who are doing
that job every day.”
FRANCHISE PLAYERS
The Winding Path to Success as Dry Cleaning
Franchisees
February 12, 2015
Angel and Anne Marie Ramos's path to becoming ZIPS Dry Cleaners
franchisees was a long and complicated one. The couple had always known
they would move to the U.S. after Angel retired from his military service in
the Salvadoran military. However, they weren't sure how they would make a
living.
The dry cleaning business seemed like the perfect solution. First, they
opened a Dryclean Depot location. Then, they partnered with 12 other dry
cleaner owners to form ZIPS Dry Cleaners. Today, the couple owns two of
their own ZIPS locations as franchisees in Fredericksburg and Dumfries, Va.
Here's what they've learned.
Name: Angel and Anne Marie Ramos
How much would you estimate you spent
before you were officially open for business?
Franchise(s) owned: ZIPS Dry Cleaners, in
Back in 1999, we were not buying into a franchise. It was
a different concept. We started as a lessee
owner/operator and put a down-payment, and we bought
the business for the second year’s gross sales which in
our case was one million dollars. We were in the store
open to close during those first two years working longer
than 12 hours a day six days a week.
Fredericksburg and Dumfries, Va.
How long have you owned a franchise?
Angel and I have owned our dry cleaning store in
Fredericksburg since 1999. We were originally part of a
chain called Dryclean Depot. In 2001, we partnered with
12 other dry cleaner owners (we collectively owned eight
dry cleaners in the Mid-Atlantic) as a buying collective to
help cut costs. We branded ourselves ZIPS, pooled our
advertising funds and agreed to standardize operating
procedures and offer same-day, one-price dry cleaning –
currently $1.99 per garment. The project worked so well
that in 2006 we decided to franchise.
Why franchising?
As co-founders of ZIPS, we first decided to open
company-owned stores, but very early we found out it
was very difficult with fourteen owners trying to run the
stores, and this led us to the best option, franchising.
Something very unique is that the fourteen of us still own
our own stores. I would add that we have gone through
the learning curve. We have established the brand with
the support needed and a formula for success.
What were you doing before you became a
franchise owner?
I owned and operated an import export company from
1984 until 1988. After selling the business, I started
teaching science and Spanish as a Second Language in
El Salvador. When I moved to the United States in 1998,
I worked as a substitute teacher for Montgomery County.
Angel retired as a full colonel after 31 years in the
Salvadoran army. His last assignment was in
Washington, D.C. as defense attaché. Upon retiring in
1999, he received the Legion of Merit award from the
United States for the cooperation he developed between
the Salvadoran and U.S. military.
Why did you choose this particular
franchise?
Angel and I always agreed that we would live and raise
our children in the United States upon his retirement, but
weren’t sure how we could make a living. We definitely
weren’t looking for a franchise. One day, I brought
Angel’s uniform to a dry cleaner and saw the long lines
to drop off and pick up the garments. When I came
home, I said, “Hey listen, Angel, I think I just saw the
opportunity for us – a dry cleaner.”
ZIPS Dry Cleaners’ successful business model is based
on a concept revolutionary to the industry and clearly in
high demand to today's dry cleaning customer – dry
cleaning that is ready for pick-up the same day it's
dropped off and all for a flat-rate price of $1.99.
Currently, the average initial investment to own and
operate a ZIPS Dry Cleaners ranges from $616,150 $778,500, which includes the $50,000 initial franchise
fee.
Where did you get most of your advice/do
most of your research?
Angel and I spent countless hours discussing the
opportunity. It is important that everyone involved is
aware of what it will require, especially if you are a
husband and wife team. Then, we spoke with other store
owners, and our family and friends. It is equally
important to speak with existing store owners.
What were the most unexpected challenges
of opening your franchise?
The 14 hour days. Angel and I were always hard
workers, but we never had to work as hard as we did
when we decided to get involved in the dry cleaning
business. We learned every single position from
production to administration, and this gave us an edge.
We could show our employees how to do things and
how quickly, because we had done it ourselves.
What advice do you have for individuals who
want to own their own franchise?
You absolutely must be excited and enthusiastic about
owning your own business. And don’t get into it believing
you will only work eight hours per day. If you are a
husband and wife team, you must have the support in
place, because it will be very difficult especially with
small children. You will probably work much harder in
the first few years than ever before.
What’s next for you and your business?
In 2013, the 14 original ZIPS founders decided to take it
a step higher. We sold a controlling interest in ZIPS to
private equity firm JPB Capital Partners. With their help,
we believe that we can move the concept through its
next phase of growth including improved execution of
the existing system and further geographic expansion of
the concept. There are currently 40 stores open and
operating throughout the Mid-Atlantic region of the
United States.
On a personal level, Angel and I bought an existing ZIPS
franchise last year and in less than 12 months increased
the sales by 25 percent. We were also awarded the
ZIPS Franchise of the Year Award.
Dry-Cleaning Franchise Bets Low Cost Will
Mean High Volume
By Gabrielle Karol | Published November 22, 2013 | FOXBusiness
Small Business Spotlight: ZIPS,
@ZipsDryCleaners
Who: Reid Bechtle
What: A dry-cleaning franchise
When: 1999
Where: Greenbelt, Maryland
How: CEO Reid Bechtle says the concept for ZIPS is based on a simple concept: Every
garment dry-cleaned is $1.99 or less. “We don’t charge anything extra to clean women’s
clothes,” says Bechtle, differentiating ZIPS shops from traditional drycleaners.
“The question is: Are we charging too little or are they charging too much?” asks Bechtle.
ZIPS, which was founded in 1999 by a group of seven founders, now has 36 locations
cleaning in excess of 20 million garments annually.
Biggest challenge: Bechtle says the company is trying to balance the demand for new
franchises with the ability to support them. Recently they had inquiries from franchisors in
California, but Bechtle says ZIPS is committed to expanding closer to home first before going
bi-coastal.
One moment in time: “What I’m most proud of is working with the group of founders who
started this company. They’re by far the most competent, nice folks who want to do the right
thing,” says Bechtle, who was brought on as CEO in April.
Best business advice: “Take care of the customer first,” says Bechtle.
Dry cleaners seeks investor to expand, franchise
By JOYCE M. ROSENBERG | Associated Press – Friday, November 15, 2013
NEW YORK (AP) — ZIPS Dry Cleaners wanted to
expand, but needed some help.
The chain located in the Washington D.C., area was
adding franchises but didn't have the corporate
structure or money to realize its goal of expanding
along the East Coast.
"We couldn't take it to the next level," says Brett
Vago, owner of three ZIPS stores and the company's
former CEO.
ZIPS grew out of eight individually owned stores,
each with its own name. In 2002, the stores' 14
owners decided to band together as a chain called
ZIPS. The chain grew further as they added three
jointly-owned stores and, in 2006, ZIPS began selling
franchises.
By early 2013, ZIPS had more than 30 stores. It was too big for its owners to manage while they also ran their
own stores.
"We weren't able to provide franchisees with the dedicated amount of time they should be entitled to," Vago
says.
And ZIPS didn't have enough cash to grow at the rate the owners wanted.
The owners needed help. They hired business consultant Reid Bechtle, who introduced them to JPB Partners, a
private equity firm that owned restaurants and other companies that cater to consumers.
"The money was secondary. Bringing management to the table, their past experience — that was very
important," Vago says.
JPB bought a controlling stake in ZIPS in April of this year. The company did not reveal what it paid.
Bechtle became ZIPS' CEO. His job was to take a company that started with mom-and-pop cleaners and turn it
into a unified operation with 36 stores in four states. One of his biggest challenges is getting all the owners to
set their stores up so they look like part of a chain, with the same signs, uniforms and procedures in each store.
That can be difficult when dealing with people who are used to running their own shops.
"They can no longer do everything they've been doing," Bechtle says.
Having someone else to manage the franchise operation has made life easier for ZIPS' original owners. Vago
says he now has the time to concentrate on his own stores.
Corporate Headquarters
ZIPS Dry Cleaners
7474 Greenway Center Drive
Greenbelt, MD 20770
www.321zips.com
http://www.321zips.com/franchise.php
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