1-800-Dry Clean
Date Incorporation: 2000
Franchising Since: 2000
Headquarters: Ann Arbor, Michigan
Description: 1-800-Dry Clean is dedicated to providing a professional and reliable pick-up and delivery system and service that offers dry-cleaning and other related services. The franchisee will establish a relationship with an established dry-cleaning business; the actual dry-cleaning and laundry processes are not performed by the franchisee.
Franchise Offer: The franchise offered is a home-based mobile residential and commercial dry-cleaning pick-up and delivery service.
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchise is deemed eligible for streamlined and expedited loan processing through the Small Business Association.
Training and Assistance: An Initial Training program begins with “Right Start,” a four to six week program that includes numerous pre-opening activities. During Right Start, the franchisee must prepare a comprehensive financial plan, review the manuals, complete a territory review, coordinate the initial advertising program, acquire proper insurance, and acquire all permits, licenses, and approved vehicles. Upon completion of “Right Start”, five days of classroom training will be conducted at the home office in Ann Arbor. Once classroom training is completed, three days of training is conducted on-site in the franchisee’s territory
Territory: The franchisee will be awarded an exclusive territory within which the franchisee may provide 1-800-DryClean services to customers. The typical territory includes approximately 25,000 households. Additional territories may be bought.
Term of Agreement and Renewal: The term of the franchise agreement is 10 years. If the franchisor is in good standing and full compliance with the Franchise Agreement, two additional consecutive renewal terms of 10 years are available. The fee for renewal is $3,000.
Obligations and Restrictions: The franchisee must at all times faithfully, honestly, and diligently perform obligations under the Franchise Agreement. A Managing Owner will operate as the franchisor’s primary contact with the franchised business and operate the franchised business on a full-time basis. The franchisee must offer and provide all of the services required for 1-800-DryClean franchises, and in the manner the franchisor prescribes. The franchisee may not market or perform any unauthorized services
Total Number of franchises Units: 117 units as of 2006
Investment Tables:
Initial Investment:
| Expenditures | Low | High |
|---|---|---|
| Initial Franchise Fee | $14,900 | $14,900 |
| Territory Fee per approximately 25,000 target households | $15,000 | $15,000 |
| Initial Package Fee | $13,500 | $13,500 |
| Van Deposit Expense | $0 | $3,000 |
| Real Estate and Utility Deposit | $0 | $3,000 |
| Furniture, Fixtures and Equipment | $200 | $2,000 |
| Phone Deposit | $200 | $400 |
| Permits and Licenses | $50 | $100 |
| Insurance Deposit | $200 | $1,500 |
| Training Expenses for Travel, Food and Lodging | $100 | $3,000 |
| Additional Funds | $10,000 | $10,000 |
| Total Estimated Initial Investment | $41,400 | $66,400 |
Ongoing fees:
| Name of Fee | Amount |
|---|---|
| Royalty | 7% of Gross Sales. If franchisee fails to achieve the Minimum Gross Sales, the franchisor may collect a minimum royalty. |
| Marketing and Promotion Fund | 1% of Gross Sales |
| Minimum Marketing Fee | Then current fee presently at $115.40 per week in each territory |
| High Speed Internet Connection and Email Service Fee | Then current fee presently at $39 - $99 per month. |
| Software Upgrade Fee | Not to exceed $500 per Upgrade |
| Additional Software License Fee | For each additional workstation added the franchisee will pay the then current additional software license fee presently at $1,280 per additional software license |
| 1-800-DryClean toll free number usage | Then current fee presently at $0.24 for each minute in excess of 100 minutes per month |
| Anti-virus software | Then current fee presently at $45 - $60 per year |
| Transfer | Then current Transfer Fee. At this time, the current fee is $9,900 per Franchise Agreement. If being transferred to another 1-800-DryClean franchise owner, presently, the current fee is $2,000 per Franchise Agreement. If franchisee authorizes franchisor to enlist a third party broker to locate the transferee, franchisee will pay current broker/consultant fee. Presently the current fee is $17,000 |
| Transfer of Corporation Fee | $500 |
Outstanding fees and royalties of Predecessor |
Will vary under circumstances |
| Conventions and Regular Meetings | Then current fee presently at $200 per person |
| Additional Training or Assistance | Then current fee presently at $500 per person |
| Renewal | Then current fee presently at $3,000 |
| Modification to System Standards | $100 - $1,000 per modification |
| Audit | Cost of inspection or audit presently estimated at $2,500-$3,000, plus 100% of understated Royalty and interest, at the rate of 12% per annum or the maximum rate permitted by applicable law, whichever is greater, and all late fees, from the date originally due until the date of payment |
| Interest | Greater of 12% per annum or the maximum permitted by law |
| Late Royalty Report Fee | Then current fee presently at $20 per week |
| Late Payment Fee | 5% of Royalty amount due or $20 per week, whichever amount is greater |
| Non-Sufficient Funds Fee | Then current fee presently at $33 |
| Indemnification | Will vary under circumstances |
| Costs and Attorneys Fees | Will vary under circumstances |
| Rescheduling Launch Date | $500 |
| Database merging fee | Then current fee presently at $1,000 |
The above information has been taken from the UFOC/FDD of 1800-Dry Clean
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