ZIPS and Mulberrys Partner to Increase Market Share for Franchisees

Value Drycleaners of America LLC (VDA), the company that operates and franchises 70 ZIPS Cleaners locations throughout the United States, recently became the exclusive nationwide developer of Mulberrys Garment Care locations. Spearheaded by VDA CEO Bob Barry, the move was part of a strategic plan to give new and existing franchisees the flexibility of having both high-end (with Mulberrys) and low-priced (with ZIPS) options when evaluating neighborhoods in which they hope to expand, empowering them to meet the needs of more of the local population and drive more volume into their centrally located garment-processing locations.

Through a newly established entity, Gemini Cleaners LLC, VDA will now serve as master franchisor of Mulberrys locations nationwide. In addition, the company will explore opening and operating Mulberrys locations itself. This agreement reflects the organization’s commitment to growing its investment in the $10 billion garment care market by offering separate, non-competitive brands that meet the needs and preferences of distinct consumer segments.

Previously based in Minneapolis, Mulberrys has 13 locations across that market and San Francisco and is well-known for its boutique-style interiors, high-touch service, attention to detail, and free delivery. The company sees garment care as a craft and is built on the belief that the difference is in the details. In addition to providing the highest-quality dry cleaning, locations offer expert tailoring and alterations, wash and fold laundry subscriptions, leather cleaning, wedding gown care, and comforter and linen service. They also provide free route delivery, a satisfaction guarantee, elegant packaging, wooden hangers and collar stays, while offering guests comfortable seating, luxury décor, free coffee, and items for purchase in their spa-like reception areas, including high-end garment care products and gift items.

Mulberrys’ new arrangement with VDA will help the brand expand into new markets, initially in the Baltimore/Washington D.C. region where ZIPS has its highest concentration of stores. The first of these expansion sites opened in late December in the Friendship Heights section of Washington, D.C. More recently, a group of existing ZIPS franchisees signed a three-unit development agreement to bring Mulberrys to Northern Virginia. Others expansion deals are currently under development.

Mulberrys’ founder Dan Miller is continuing as an advisor to VDA and operator of existing Mulberrys locations in San Francisco.

“I am delighted to have found a good home for Mulberrys in ZIPS and its parent, VDA,” he said. “ZIPS’ founders were ambitious entrepreneurs who, like me, saw an opportunity to capture a specific consumer segment and create value for customers. Both of these brands meet a need in the market and when combined, provide excellent options for both consumers and franchisees.”

ZIPS provides many of the same services as Mulberrys, but serves high-volume, cost-conscious consumers who enjoy ZIPS’ everyday low price and same-day service for dry cleaning and pressed laundry. The brand also offers wash and fold laundry by the pound, alterations, household item cleaning (comforters, blankets, etc.), and commercial services. Launched by a group of independent dry cleaners in the Baltimore-Washington, D.C., area who pooled their resources and experience to create a strong regional brand, the company has grown to more than 70 locations nationwide by sticking to its low, transparent pricing structure and same-day service promise, as well as by capitalizing on a strategic expansion model: Operators first develop a fully equipped production facility (“plant”) to process all items on-site, and then can develop smaller satellite (“drop”) locations that send items out to be cleaned at the production facility. This allows operators to cover more of their market without having to invest in larger spaces and the equipment to fill them each time they want to expand.

Under the new arrangement, these operators will now have the option to open a Mulberrys drop location in proximity to a ZIPS plant, have their customers’ items sent out to the plant for initial processing and then returned to the Mulberrys to receive all the higher-end finishing touches on which Mulberrys’ reputation was made.

“The garment care industry is growing and changing as consumer preferences, demographics, and lifestyles are shifting,” said Bob Barry, President/CEO of VDA, Gemini Brands and ZIPS. “This partnership allows us to offer franchise opportunities that can be customized to meet the needs and preferences of consumers in specific areas. In doing so, we can provide the greatest opportunity for investors to maximize their market share.”

“We’re seeing great excitement about our dual-brand opportunity and our hub-and-spoke expansion model both within our system and from new candidates approaching us from outside,” added Michael Waintraub, Director of Business Development for both brands. “Both of these features are designed to facilitate growth and market coverage as quickly and inexpensively as possible and to allow our operators to answer demand at either end of the garment care spectrum. Being able to go into available space with the concept best-suited to that location’s surrounding community will give our franchisees the best opportunity to capture market share.”

Brett Vago, co-owner of the Friendship Heights Mulberrys store and part of the group that will soon open three more Mulberrys sites in Northern Virginia, also co-owns and operates five ZIPS stores in that market and Washington, D.C. He said the new brand has been a hit with local consumers and has opened the door to increasing his share of the garment care segment more rapidly.

“We were honored to have the privilege of opening the first Mulberrys location in the East,” said Vago. “The Friendship Heights community has embraced the concept, and we’re off to a solid start. My partners and I are now eager to introduce Mulberrys to Northern Virginia, and, along with our fellow franchisees, will weigh out which brand will work best in each market where we want to expand.”

Franchise opportunities with ZIPS and Mulberrys are available in select markets throughout the United States. For more information, visit 321zips.com/own-a-zips/ or mulberryscleaners.com/franchise/ or contact Director of Business Development Mike Waintraub at [email protected] or (609) 468-7195.

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