ZIPS Cleaners (formally ZIPS
The total investment to open a ZIPS Cleaners (formally ZIPS franchise ranges from $113,600 to $1.4M. The initial franchise fee is $30,000. Ongoing royalties are 6% plus a 5% advertising fee.
What is the ZIPS Cleaners (formally ZIPS franchise?
ZIPS Cleaners, formally ZIPS, is a dry cleaning and laundry business for people who need garments cleaned. The estimated total initial investment is $113,600 to $1,421,040, and the initial franchise fee is $30,000.
The royalty is 6 percent of sales, and the advertising or brand fund fee is 5 percent. The franchise agreement term is 10 years.
The company is headquartered in Warminster, PA, and was founded in 2021.
Loan Activity Score
45/100
SBA Default Rate
13.3%
Active Lenders
10
According to its Franchise Disclosure Document or public business records, ZIPS Cleaners (formally ZIPS has 9 locations, all owned by franchisees. Public SBA loan records show 10 lenders made 15 loans to franchisees of ZIPS Cleaners (formally ZIPS. PeerSense calculates ZIPS Cleaners (formally ZIPS's score as 45 out of 100, using public SBA loan performance and recent lending activity.
Franchising since 2021 · 9 locations
$113,600 to $1.4M
$30,000
9
9 franchised
Proprietary PeerSense metric
FairDistinct lenders in public SBA records for ZIPS Cleaners (formally ZIPS
15
Total SBA loans
$913K
Average loan size
Source: public SBA 7(a) and 504 loan records through December 31, 2025
Referral fee at closing
SBA Lending Activity for ZIPS Cleaners (formally ZIPS
Loan Activity Score Breakdown
Growing (10 to 24 loans)
Are lenders increasingly or decreasingly funding this brand? Growing trends score highest.
Blended default rate (recent + all time) compared to NAICS sector peers.
Quality lenders actively backing this brand, with penalty for lender pullback.
FDD availability, Item 19 disclosure, and overall data completeness.
Geographic spread of SBA funded locations across states.
SBA Lending Performance
SBA Default Rate
13.3%
vs 10.8% peer avg
SBA Loans
15
Total Volume
$13.7M
Active Lenders
10
2 selective
States
7
vs. SBA Sector Average
SBA loan default rate vs. all franchises in the same NAICS sector, not limited to direct competitors
Key Highlights
Franchise Financing Resources
Data Insights
Key performance metrics for ZIPS Cleaners (formally ZIPS based on SBA lending data
SBA Default Rate
13.3%
2.5% above peer avg
SBA Loan Volume
15 loans
Across 10 lenders
Lender Diversity
10 lenders
Avg 1.5 loans per lender
Investment Tier
Premium investment
$113,600 to $1,421,040 total
ZIPS Cleaners (formally ZIPS: Deep SBA Data
Brand specific metrics derived directly from SBA 7(a) approval records: peak lending year, leading state, average loan size, and lender concentration. PeerSense computes these per brand so capital advisors and prospective franchisees can benchmark this opportunity against the rest of the franchise universe.
Peak SBA Year
2025
3 approvals. The best year on record for ZIPS Cleaners (formally ZIPS.
Top SBA State
Pennsylvania
4 SBA financed ZIPS Cleaners (formally ZIPS locations, the densest operator footprint.
Average Loan Size
$913K
Median $825K. Use as a sizing anchor when modeling your own ZIPS Cleaners (formally ZIPS unit.
Lender Concentration
53.3%
Concentrated
Share of ZIPS Cleaners (formally ZIPS approvals captured by the top 3 SBA lenders.
ZIPS Cleaners (formally ZIPS's SBA lending pipeline peaked in 2025 (3 approvals). The last five fiscal years account for 53% of cumulative volume ($7.8M approved). Operator density is highest in Pennsylvania with 4 SBA financed locations. Average funded ticket sits at $913K, with the median at $825K. Lender mix is concentrated: the top three SBA lenders account for 53.3% of approvals. Credit decisions concentrate with a small group of incumbents.
Payment Estimator
Estimated Monthly Payment
$1,176
Principal & Interest only
Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.
Locations
ZIPS Cleaners (formally ZIPS, unit breakdown
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Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense
- PeerSense is a capital advisory firm that places commercial financing with direct capital sources; the capital source sets final terms.
- Edward L. Freeman founded PeerSense in January 2020.
- He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
- His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
- In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page
Last reviewed LinkedIn profileAbout Edward Freeman