CHICAGO — For those looking to enter the drycleaning business, or potentially expand their reach, one of the decisions they’ll face is whether to buy into a franchise system or go it alone as an independent operator. Both models can work, but they appeal to different entrepreneurial mindsets.
Franchising offers structured support, established brand recognition and proven systems, but requires payment of ongoing fees and adherence to corporate guidelines.
Independence provides complete operational control and the ability to retain all profits, but demands greater self-reliance in developing systems and building brand recognition.
The Case for Franchising
Franchising made sense from day one for Ryan Armstead, who operates two Tide Cleaners locations in Harrisburg, Pennsylvania. The brand recognition factor was a huge part of the appeal.
“I hold a lot of faith in franchising,” he says. “Why would I have a ‘Ryan’s Dry Cleaning’ when I could use the Tide logo and automatically draw brand recognition?”
Armstead researched the economics involved with both models as he started.
“I know I could have opened another drycleaning business for less money,” he says. “When you’re independent, there’s a lot of freedom. But the value of a franchise far outweighs the initial cost. Even the ongoing fees, in my opinion.”
Christopher White, executive director of industry consulting and plant design firm America’s Best Cleaners (ABC), sees this appeal regularly when consulting with prospective business owners.
“Franchising softens a lot of the rough patches of the adaptation of running this business,” he says, “because they sell you built-in systems, a built-in platform, and a mechanism for support and sales revenue generation.”
For Armstead, who came from a different field, the ongoing support has proved particularly valuable in dealing with the learning curve involved in entering the drycleaning industry.
“I have a background in the service industry, but that was primarily food-oriented,” he says. “I can take care of my customers and employees. But dry cleaning was a new skill for me. Even with the intense training, every once in a while, I’m stumped by an article of clothing. I can call my contact at Tide and ask them how to proceed.”
The relationship with the franchisor goes well beyond just technical support, according to Armstead.
“I know that the idea of giving a company a percentage of sales is alien to some,” he says, “but I also know that I have a team behind me who does the research and has projections and suggestions. It’s a symbiotic relationship; they do their part, and I do my own. But when I don’t have the answers and need guidance, they’ve yet to let me down.”
Armstead also hasn’t felt restricted by franchise requirements.
“I don’t think I’ve ever felt inhibited by the system,” he says. “Tide emphasizes customer relations and quality service. That happens to align with my own business style. Maybe for some, the pressure of meeting expectations might feel inhibiting or stressful, but I like to think of them as opportunities.”
The marketing advantages go well beyond having a recognizable name on the storefront, according to Armstead.
“Who hasn’t walked by a row of Tide laundry detergent in a store?” he asks. “Who hasn’t grown up with a Tide commercial showing a before-and-after of a kid’s grass-stained soccer jersey? I use Tide in my own home, and the idea that they have a drycleaning product resonates.”
This brand power translates into competitive advantages in the marketplace.
“Tide’s colors, name and commercials go a long way to establishing the Tide brand in the minds of potential customers,” Armstead says. “But our service? We also have top-notch machinery, training and standards.”
Come back Thursday for Part 2 of this series, where we’ll explore the other side of the coin — striking out solo.
Have a question or comment? E-mail our editor Dave Davis at [email protected].
