Martinizing Dry Cleaning Franchise Cost & Fees
Date of Incorporation: 1949
Franchising Since: 1949
Headquarters: Berkley, Michigan
Business Description: The franchisor, Martinizing International, LLC, has developed a system for, among other things:
- Operating a retail dry cleaning store offering retail dry cleaning and related services (the Retail Services)
- Operating a dry cleaning and laundry pickup and delivery service (the Route Services)
- Servicing laundry and dry cleanable goods and soft contents to and from a locker based system (the Locker Services) and
- Servicing laundry and dry cleanable goods and soft contents on-demand (the On-Demand Services).
Franchise Offer: The franchise offered is for the operation of a Martinizing retail dry cleaning store offering retail dry cleaning services, as well as dry cleaning and laundry pickup and delivery services, and dry cleaning and laundry services through both locker based and on-demand systems.
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, vehicle payments or other obligations. Franchisees of MFI are eligible for expedited and streamlined Small Business Administration (SBA) loan processing through the SBA’s Franchise Registry.
Training and Assistance: The franchisor currently provides a training program for the franchise, consisting of: approximately 40 hours of classroom training conducted at its Berkley, Michigan based headquarters; approximately 40 hours of training at the Martinizing Training Center located in Oak Park, Michigan; and approximately 80 hours of “on the job training” training conducted at the franchisee’s Martinizing Store. Additionally, the franchisor may substitute, without additional charge to franchisees, a regional and/or modified training program depending on their needs. If the franchisee is obtaining an Initial Franchise, the franchisor will provide the training program to two persons as part of the Initial Package and the Martinizing Training Program is mandatory for the Managing Person and the Store Manager, if one is employed by the franchisee. The franchisee will be considered the Managing Person, unless otherwise designated by the franchisee before training. The franchisor will provide ongoing training, including web-based training as well as follow-up and refresher training courses, as well as organize Martinizing Conventions and Martinizing Regional Meetings to facilitate the exchange of ideas and industry developments.
If the franchisee is obtaining an Initial Franchise, this training is available to two people; one of which must be the person designated to have full authority to make the financial and operational decisions associated with the management of the Martinizing Store.
Territory: Franchisees may operate one Martinizing Store, as part of the Franchised Business, at a specific location. The defined area around the Franchised Location within which no other Martinizing Store may be established or franchised by the franchisor during the initial term of the Franchise Agreement without the consent of the franchisee shall be referred to as the “Defined Area.” The Defined Area may be determined by the franchisor using natural boundaries (such as rivers, highways and the like), traffic patterns, number of households and other relevant demographic information, but may be described by the area within a 1.5 miles or less radius of the Franchised Location, in the franchisor's sole discretion. Unless otherwise provided in the Franchise Agreement, the franchisor will all not establish or franchise another Martinizing Store within the Defined Area during the term of the franchisee’s Franchise Agreement without consent.
Term of Agreement and Renewal: The initial franchise term is for a length of 10 years. The franchisee may renew for a successive of 10 year renewal term, if requirements are met.
Obligations and Restrictions: Franchisees are responsible for performance under the Franchise Agreement and must be willing and have the ability to devote sufficient time and effort to the operation of their Franchised Business. There is no explicit contractual requirement defining the parameters of “sufficient time and effort,” but the franchisor definitely encourages franchisees to participate in the operation of their Franchised Business. Franchisees do not have to personally manage the Franchised Business, but must maintain at all times a Managing Person for operation of the Franchised Business. The Managing Person must have full authority to make the financial and operational decisions associated with the Franchised Business. During the Agreement, with the exception of any Restricted Martinizing Service, franchisees must offer all Martinizing Services to customers in accordance with the terms of the Franchise Agreement, the Operations Manual and all System Standards. Franchisees may not offer for sale any products or perform any services that the franchisor has not authorized.
Estimated Number of Units: 400
|Name of Fee||Low||High|
|Shipping for Initial Package Items||$2,500||$13,100|
|Taxes for Initial Package Items||$5,500||$30,000|
|Equipment Installation, Training, and Temporary Storage||$29,000||$47,000|
|Grand Opening Deposit||$15,000||$15,000|
|Security and Utility Deposits for Leased Franchised Location /Martinizing Store and Business Licenses||$0||$5,000|
|Rent for First Three Months for Leased Franchised Location /Martinizing Store||$3,333||$5,000|
|Vehicle Lease or Purchase Payments for 3 Months||$0||$2,000|
|Travel, Lodging, Expense, and Salary, if any, of Persons Attending Martinizing Training Program||$500||$3,000|
|Dry Cleaning Solvent License Fee||$0||$3,000|
|Legal, Accounting, and Loan Fees||$2,000||$8,000|
|Computerized Accounting System||$0||$400|
|General Business Supplies||$0||$10,000|
|Additional Funds - 3months||$10,000||$70,000|
|Type of Fee||Amount|
|Royalties||First 24 months Franchisee is in operations: 5% of gross sales.
Months 25 and beyond of Franchisee’s operations: 5% of gross sales, or $250 weekly, whichever is greater.
|Marketing and Promotion Fund Fee||1% of gross sales.|
|Annual Fixed Fee||$2,500 for the First Franchise, $1,000 for the Second Franchise and $500 for the Third Franchise.|
|Local Advertising Requirement Cooperative and National Advertising||6% of total gross sales.|
|Special Marketing||Varies per marketing initiative.|
|Franchise Management License Fee||$10 per week.|
|New Software Module||Up to $1,500|
|Locker Purchase Price||$650 per locker.|
|Locker License Fee||$0.75 per locker services transaction.|
|On-Demand Referral Fee||6%- 16% of invoiced services for On-Demand Services orders.|
|On-Demand Services Administrative Fee||1% of the total invoice amount of any On-Demand Services order, excluding the applicable On-Demand Referral Fee.|
|App Fee||$1 per transaction fee.|
|Late Payment Fee||5% of any Royalty amount payable or $50, whichever sum is greater, for each week past due.|
|Late Payment Interest||12% per annum or the maximum rate permitted by applicable law, whichever is greater.|
|Audit Fees||Cost of inspection or audit estimated at $2,500 - $10,000, plus 100% of the 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.|
|Administrative Fee||Up to $500|
|Printed Materials, Manuals and Reports||$15 to $500|
|Additional Assistance||$200-$700 per person or the then current fee|
|Additional Martinizing Training Program||$250 per person or the then current fee, plus travel, lodging, or additional personal expenses incurred while attending Martinizing Training Program.|
|Refresher Training||$250 per person or the then current fee, plus travel, lodging, or additional personal expenses incurred while at training.|
|Industry training/ Recertification Training||Will vary, but typically ranges from $200 to $1,000 plus travel, lodging, or additional personal expenses incurred while at training.|
|Fees for Optional Programs Including Training Fees||Will vary/unknown.|
|Added Martinizing Convention or Regional Meeting||$0 to $750 plus travel and living expenses.|
|Regional/National Account Programs Participation Fees||Will vary/unknown.|
|Regional/ National Account Program Administrative Fee||Will vary/unknown.|
|Franchise Renewal Fee||$20% of the then-current initial franchise fee or then current renewal fee.|
|Transfer Fees||$10,000 or the then-current transfer fee, plus any outstanding fees owed to Franchisor as of the date of the transfer.|
|Transferee Identification Fee||10% of the purchase price.|
|Call Center Contact Fees||$1 - $25 per referral.|
|Costs and Attorney’s Fees||Will vary under circumstances.|
|Remodeling of Store||Varies under circumstances, but typically ranges from $1,000 to $20,000|
|Indemnification||Varies under circumstances, but could range from $100 to $100,000 or more depending on the nature of the claim.|
|Expenses to Enforce Obligations upon Termination||Varies under circumstances, but could range from $5,000 to $50,000 or more.|
|Machinery and Equipment Testing and Repair/Replacement||Costs vary, but testing could range from $100 to $500 and repair could range from $100 to $5,000|
The above information has been taken from the FDD of Martinizing. Year of FDD: 2016
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