The laundry and dry cleaning franchise business has started picking up the market from 2017 onward in India. Many new companies started expanding and even some of the companies got listed in the Startup India program. It was the year 2018 when some of the companies in India started their franchisee model. Most of the companies were giving laundromat franchises and dry cleaning was neglected for almost 2 years. It was 2020 that some of the companies started giving franchisees of dry-cleaning as well. So let us know what we should know before starting a franchise model.
Top the five things you should know before starting a Laundry or dry-cleaning franchise business
This business is F.O.F.O model only:
If any company is saying that this model is FOCO model which means franchisee owned and company-operated model then I think they are not disclosing the fact that it involves a high amount of management and this model can only be operated when the franchisee showed his interest in the shop. F.O.F.O model is called franchisee owned and franchisee-operated model which means the franchisee has to take part directly or indirectly in the operations. Moreover, this kind of model involves a high quantum of money so the presence of the owner is a must. We have seen in the past few years that relationship marketing works the best when it’s come to laundry and dry cleaning. And this type of marketing is only possible when the owner itself manages the shop.
Loyalty is involved:
As in India most of us prefer to go to the same Barber so the case in the dry cleaning and laundry business also. Most of the customers prefer to go to the same Laundry or dry-cleaning shop.
Local demand local supply:
The laundry and dry cleaning business are hyper-local in nature which means Laundry or dry-cleaning demand will be local and the supply will be local. The maximum area that which shop can cover easily and have positive unit economics of shop is 5 to 7 km in radius from the centre of the shop.
High-profit margin:
Though margins depend on the type of model which you choose but on the whole there are high-profit margins to be very specific we can say that in Laundry there is more than 62% of margin and in dry cleaning, there is more than 55% of the margin. If you want to know about how many models are there in the industry you can check our new blog on types of models in the laundry and dry cleaning business.
Seasonal effect on business;
Though in North India dry cleaning is more a seasonal business as its season starts from 1st October and ends on 15th of April. But as Laundry marketing is picking up most of the downtime is covered with the Laundry. In India, many other services have also been started by the Dry Cleaners for example sofa cleaning, car cleaning, and carpet cleaning. So in nutshell, we can say that dry-cleaning business is no more a seasonal business.
Before you start deciding I think you should also understand the calculations. You can check our blog on calculation.
