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BIZBITE

Dry Cleaning

A shrinking industry — which means the survivors are printing money

Bottom line

Worth studying, but do not buy without strong local proof.

The US has lost 30%+ of its dry cleaning businesses since 2018. The shops that remain are charging more, serving loyal repeat customers, and running leaner than ever. A well-located dry cleaner generating $350K–$600K is a cash machine — predictable walk-in traffic, professional clientele, high repeat rates, and zero ecommerce risk. Consolidation has created a buyer's market: prices are reasonable and the remaining customer base is loyal.

75
Acquisition score
Excellent

Avg Revenue

$400K

Profit Margin

35%

Acquisition Multiple

1.4x - 2.6x

Startup Cost

$80K - $500K

How It Works

Customers drop off garments that cannot be machine-washed — suits, dresses, formal wear, specialty fabrics. You clean using professional solvents or modern wet-cleaning systems, press and steam each piece, and return them on schedule. Revenue per order ranges $8–$75+ per garment. Dry cleaners thrive on habit: professionals bring in the same items on the same day every week.

Revenue Range

Low End
$150K
Typical
$400K
High End
$700K

BizBite underwriting snapshot

Worth underwriting

Dry Cleaning maps to the Laundromat model. The category can work for acquisition buyers, but the right answer depends on source freshness, verified economics, and the specific red flags below.

71
Strong / 100
Data confidence
medium
72/100
Financing fit
strong

Category-level fit before lender-specific diligence.

Confidence cap
78

Weak source data caps the final score.

Why it may work

  • +Attractive 35% estimated margin profile
  • +Category usually has strong acquisition-financing fit
  • +Lower labor intensity than many SMB categories
  • +SBA dataset shows 102 recent comparable loans

Be careful

  • !Source link status has not been verified yet
  • !No last-checked date yet
  • !Capex-sensitive model

Category operating model

Laundromat

low labor
high capex
medium owner

Revenue drivers

  • Washer and dryer turns per day
  • Average vend price by machine size
  • Wash-and-fold or pickup/delivery attachment
  • Vending, ATM, detergent, and ancillary sales
  • Hours open and neighborhood density

Key risks

  • Old machines can create a near-term capex bomb
  • Short lease term can destroy acquisition value
  • Utility costs can quietly compress margins
  • Turns/day claims are easy to exaggerate without machine-level proof

What you need to believe

  • The location has durable renter/student/urban demand.
  • Machine replacement needs are reflected in the purchase price.
  • Lease control is long enough to recover the acquisition premium.
  • Reported cash sales are verifiable enough to underwrite.

Real Acquisitions in This Category

SBA 7(a) change-of-ownership loans · NAICS 812320 · Drycleaning and Laundry Services (except Coin-Operated)

Deals tracked
200
102 in last 24 mo
Median loan
$431K
$264K–$734K p25/p75
Implied deal size
$507K
median · ~85% LTV
Charge-off rate
not enough resolved loans

Deal Size Distribution

<$150K
16
$150K–500K
102
$500K–1M
44
$1M–2M
29
>$2M
9

Deal Flow Over Time

12-month momentum
-17.9%
deal volume vs prior 12 mo
Median loan Δ
+29.1%
46 recent · 56 prior

Financing Profile

Median rate
9.75%
4% fixed · last 24 mo
Median term
120 mo
standard 10-yr
Collateralized
0%
of loans secured
Median jobs
8
supported per deal
Top lenders in this space
Hanmi Bank15
The Huntington National Bank15
New Millennium Bank7
Bank of Hope7
Merchants Bank of Indiana7
Where deals happen
TX33
CA23
GA18
FL17
IL14
PA12
NY11
NJ10
CO7
AZ6
Franchise vs independent
Franchised acquisitions finance at $478K median vs $431K for independents — a +11% franchise premium. Franchises make up 7% of deals tracked.

Recent Comparable Deals

ClosedStateLoanImplied deal
Mar 2026MI$840K$988K
Mar 2026FL$5.0M$5.9M
Feb 2026PA$1.2M$1.4M
Feb 2026PA$350K$412K
Feb 2026DE$942K$1.1M
Jan 2026NJ$296K$348K
Jan 2026MD$2.8M$3.3M
Jan 2026WA$261K$307K
Jan 2026TN$450K$529K
Dec 2025TX$457K$538K
Volume rank #39/544Deal-size rank #454/544Momentum rank #231p90 loan: $1.6MData as of Mar 2026

Source: SBA 7(a) FOIA dataset, filtered to acquisitions (loans where business age is "Change of Ownership"). Implied deal size assumes an 85% loan-to-purchase ratio, a common SBA change-of-ownership structure. Charge-off rate shown only when 10+ loans have resolved (paid in full or charged off). Interest rates reflect last 24 months only. Actual deal values vary with equity injections, seller financing, and working capital terms.

Pros

  • +Industry consolidation means less competition and stronger neighborhood pricing power
  • +Loyal customer base — professionals become habitual weekly customers for years
  • +Recession-resistant: employed professionals always need clean clothes
  • +Add-on services (alterations, pickup/delivery, wedding preservation) boost avg ticket

Cons

  • -Environmental regulations on perchloroethylene (perc) solvents are tightening in many states
  • -Dry cleaning equipment (presses, cleaning machines) is expensive to replace when it fails
  • -Skilled pressers and spotters are genuinely hard to hire and retain

Best For

Owner-operators willing to work hands-on in a neighborhood service business with strong customer loyalty

Operating Costs

Key costs: equipment maintenance, chemical/solvent supply, lease (foot traffic location matters), and labor for 2–3 staff. Green wet-cleaning equipment cuts regulatory risk and often commands premium pricing.

SBA Financing Estimator

Adjust the deal — see if it cash flows after debt service

+$6K/mo
after debt service
Deal price — $510K
Range: $360K (1.4×) to $1.4M (2.6×+)
Down payment — 15% ($77K)
SBA minimum equity injection is 10% for change-of-ownership
Interest rate — 9.75%
SBA median for this category: 9.8%
Loan term — 10 years (120 mo)
SBA median for this category: 120 months
Down payment
$77K
15% equity injection
Loan amount
$434K
85% SBA-financed
Monthly payment
$6K/mo
$247K total interest
Monthly profit
$12K/mo
at 35% margin
Monthly cash flow after debt service
+$6K/mo
Down payment paid back in ~13 months — strong return

Estimates only. Excludes owner compensation, capex, working capital draws, and taxes. Margin assumes average occupancy and volume. Actual SBA terms vary by lender and borrower profile.

Where to Buy

BizBuySell

Largest marketplace for dry cleaning business acquisitions

BizQuest

Find dry cleaning businesses across all price ranges and markets

Coin Laundry Association

Industry resources for laundry and dry cleaning operators

75/100Excellent

Acquisition Score

Profit margin
23/30
Entry multiple
30/25
Market depth
14/20
Risk (charge-off)
8/15
Deal momentum
1/10

Scores margin (30), entry multiple (25), SBA market depth (20), category risk (15), and deal momentum (10). Higher = better acquisition candidate.

Quick Facts

Category
service
Difficulty
3/5
Buy price
$560K$1.0M

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