Mulberrys Garment Care Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$163,250 - $1,175,000
Franchise Fee
$2,000
Total US Locations
15
Business Summary
Mulberrys Garment Care operates a premium, toxin-free business offering dry cleaning, laundry, garment and fabric care, repair, and alterations. The services are available through various convenient options, including pick-up, drop-off, delivery, and locker services.
Corporate History
Gemini Cleaners LLC was formed on July 17, 2023, as a Maryland limited liability company and is a wholly owned subsidiary of Value Drycleaners of America, LLC (VDA). On September 15, 2023, Gemini Cleaners LLC entered into a Master Franchise Agreement with Mulberrys Franchising, LLC, which granted it the right to offer and sell Mulberrys Garment Care franchises in the United States. Gemini Cleaners LLC began offering these franchises on October 16, 2023. The Mulberrys Garment Care system itself has a longer history, with Mulberrys Franchising, LLC having formed in July 2019 and its predecessor, Mulberrys, LLC, operating since June 2008. Gemini Cleaners LLC does not operate any of the franchise-type businesses directly.
Financial Overview
Investment Range
$163,250 - $1,175,000
Franchise Fee (Low)
$2,000
Franchise Fee (High)
$30,000
Royalty %
6%
Marketing %
5%
Equipment Costs (Low)
$566,000
Equipment Costs (High)
$899,000
Working Capital
$150,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial statements for Value Drycleaners of America, LLC and its subsidiaries (VDA), the parent company of Mulberrys Garment Care's franchisor, Gemini Cleaners LLC, were audited by an independent auditor and received an unqualified opinion, indicating they present fairly in all material respects. As of December 31, 2023, VDA reported positive members' equity of $434,578, and net income for 2023 of $242,457 (following a loss in 2022 and profit in 2021). However, the company has negative working capital, with current liabilities exceeding current assets. Additionally, the full balance of two SBA notes totaling $300,000 has been classified as current debt because payments were not made as of April 1, 2024, making them callable at any time. A significant asset sale of $750,000 for one of VDA's subsidiaries occurred in March 2024, which the company is currently evaluating for its impact on financial position.
Financing Details
Mulberrys Garment Care does not offer any direct or indirect financing to its franchisees. Additionally, it does not guarantee any notes, leases, or other obligations that a franchisee might incur.
Performance Metrics
Total US Locations
15
Franchised Units
8
Corporate Units
7
Avg Square Footage
3,250
Franchising Since
2023
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Mulberrys Garment Care has no litigation to report. Neither the franchisor, Gemini Cleaners LLC, nor its predecessors, nor any person listed in Item 2, nor any affiliate offering franchises under their trademark, has been involved in any administrative, criminal, or material civil or arbitration actions alleging violations of franchise law, fraud, or similar misconduct. There are no currently effective orders against them related to franchises, securities, or other business activities.
Bankruptcy History
Mulberrys Garment Care has no bankruptcy history to report. Neither the franchisor, Gemini Cleaners LLC, nor any of its affiliates, predecessors, officers, or general partners have filed for bankruptcy, obtained a discharge of debts under the U.S. Bankruptcy Code, or been a principal officer of a company or partnership that did so during the 10-year period immediately preceding the date of this disclosure document.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their Mulberrys Garment Care franchise, franchisees must provide written notice between 9 and 12 months before their initial term expires. They must satisfy all financial obligations to the franchisor and its affiliates, not be in default of any agreements, and have no defaults on real estate leases or with suppliers. Franchisees are required to renovate and modernize their business to meet the current image standards for new locations, comply with new franchisee criteria, and attend any required training. They also need to provide written confirmation of their right to possess the location for the renewal term, sign a general release of claims, and execute a new franchise agreement, which may have different terms. A renewal fee of $10,000 is also required.
Training & Support Program
Franchisor Assistance
Mulberrys Garment Care provides comprehensive support to its franchisees. Before opening, the franchisor helps with site selection by providing guidelines, consultations, and on-site evaluations, and offers a generic layout for the business. It also assists with supplier approval and inspects construction. Franchisees receive initial training for up to two people, along with consultation on development and operation. After opening, ongoing support includes administering national and regional marketing funds, providing general guidelines for local advertising, and approving website content. The franchisor also offers ongoing and additional training, periodic advice and consultation on system developments and techniques, conducts inspections, and establishes pricing for services.
Initial Training Hours
120
Training Location
Our training facility located in Washington, D.C.
Ongoing Support
After opening their Mulberrys Garment Care business, franchisees receive ongoing and additional training programs and seminars, with trainees typically not required to attend more than 4 days per year. The franchisor provides periodic advice and consultation on operating the business, including expertise on the system, new developments, pricing, management, and sales promotion. This support is delivered through visits, materials, meetings, phone, and email. The franchisor also administers marketing funds, provides guidelines for local advertising, approves website content, conducts inspections, and sets prices for services. Franchisees are responsible for covering travel, living expenses, and wages for attendees during training.
Franchise Requirements
Ideal Candidate Profile
Mulberrys Garment Care is looking for qualified applicants to develop and operate its premium, toxin-free dry cleaning, laundry, garment and fabric care, repair, and alterations businesses. Candidates interested in a Development Agreement must be qualified to develop two or more businesses, with the first, in certain circumstances, required to be a Plant Facility. The franchisor also offers conversions for existing dry cleaning and laundry businesses. Franchisees must be approved by Gemini Cleaners LLC and the site for their proposed business must be accepted in writing. They (or their Operating Principal) and Store Managers must attend and successfully complete training programs.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
full-time
Territory Type
protected
Territory Size Requirements
For Development Agreements, Mulberrys Garment Care territories are mutually agreed upon, considering area density and the number of businesses to be developed. Boundaries can be defined by street boundaries, county lines, state lines, municipal boundaries, or railroad tracks, and can range from a portion of a metropolitan area to a county or state. For individual Franchise Agreements, the Protected Area, where the franchisor will not operate other Mulberrys Garment Care franchises, may be defined as an approximate 2-mile radius around the location, a metes and bounds description, or a group of zip codes. The franchisor retains rights to operate other business types or sell products within this protected area.
Staffing Notes
Mulberrys Garment Care requires that each franchised business always has a trained and certified individual on-site to supervise operations, which could be the franchisee, operating principal, a store manager, or a 10% owner who has completed the initial training. At least one Store Manager, certified in the initial training program, must be employed at all times. If this requirement is not met, a replacement must be hired and enrolled in training within 10 days. If a developer operates three or more businesses, the franchisor may require the employment of one or more District Managers who must also complete specified training. Franchisees are solely responsible for all aspects of employee management, including hiring, firing, setting hours, compensation, supervision, and training their staff according to the system's standards. No franchisee employee is considered an employee of the franchisor.