Tide Cleaners logo

Tide Cleaners Franchise

Audited Financials
Cleaning & JanitorialEst. 2008Cincinnati, OH
www.tidecleaners.com

Risk Score

Pending analysis

Investment Range

$40,320 - $2,517,300

Franchise Fee

$20,000

Total US Locations

255

Business Summary

Tide Cleaners operates retail dry cleaning businesses under the 'Tide Cleaners' name, offering premium dry cleaning, laundering, and related fabric and garment care services and products. These businesses can operate in several formats: a consumer-facing Plant Store with on-site garment treatment, a non-consumer-facing Central Plant Store for on-site treatment, a Drop Store for customer drop-off and pickup that is serviced by a Plant or Central Plant Store, or a Virtual Store that offers delivery services without a physical retail premises, also serviced by a Plant or Central Plant Store. The brand is part of The Procter & Gamble Company.

Corporate History

Agile Pursuits Franchising, Inc., which operates Tide Cleaners, was incorporated in Ohio in December 2008. The company began offering franchises for 'Tide Dry Cleaners' outlets in October 2009, and is currently transitioning the brand name to 'Tide Cleaners'. Its parent company is The Procter & Gamble Company (P&G), which was incorporated in May 1905. Tide Cleaners also started offering Tide Laundromat franchises in October 2022.

Financial Overview

Investment Range

$40,320 - $2,517,300

Franchise Fee (Low)

$20,000

Franchise Fee (High)

$50,000

Royalty %

6.5%

Marketing %

2%

Equipment Costs (Low)

$800

Equipment Costs (High)

$2,256,500

Working Capital

$15,250

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

Tide Cleaners, as a wholly-owned subsidiary of The Procter and Gamble Company (P&G), is financially dependent on P&G to finance its operations. Historically, P&G provided capital contributions and received distributions from Tide Cleaners. However, in 2023, Tide Cleaners changed its revenue collection process from franchisees and began holding its own cash on its financial statements, which will be used to pay P&G for certain incurred expenses. The independent auditors have issued an unqualified opinion on Tide Cleaners' financial statements, indicating they present fairly its financial position and results of operations.

Financing Details

Tide Cleaners does not offer any direct or indirect financing to franchisees. It also does not guarantee any notes, leases, or obligations for franchisees, nor does it intend to sell, assign, or discount any franchisee financing arrangements to a third party. Franchisees are responsible for securing their own financing.

Performance Metrics

Total US Locations

255

Franchised Units

255

Corporate Units

0

Avg Square Footage

2,800

Franchising Since

2009

Agreement Terms

Initial Term

10 years

Renewal Term

10 years

Renewal Conditions

To renew their franchise, Tide Cleaners franchisees (and their owners) must have substantially complied with the Franchise Agreement and be in full compliance with all System Standards. They must give timely notice of their intent to renew, maintain possession of their Franchised Location or secure an approved substitute, and remodel or expand the outlet to meet current System Standards (regardless of cost). Franchisees must also sign the then-current form of franchise agreement (which may have materially different terms), sign a general release of claims against Tide Cleaners, and pay a successor franchise fee equal to 50% of the then-current initial franchise fee for their outlet type. If Tide Cleaners declines a renewal request due to a 'Business Model Change', franchisees may have alternatives such as operating independently, requesting Tide Cleaners to purchase the business, or becoming a licensee if that opportunity is available.

Training & Support Program

Franchisor Assistance

Tide Cleaners provides comprehensive support to its franchisees. Before opening, Tide Cleaners assists with site selection, lease approval, and providing mandatory specifications and layouts for the outlet's design and equipment. They also offer oversight during development and construction, help identify approved suppliers for operating assets and products, provide access to a confidential operations manual, and review the franchisee's marketing plan. For a franchisee's first outlet, Tide Cleaners also provides initial training. After opening, Tide Cleaners offers ongoing assistance, including sending representatives for up to 10 days to help with the initial opening (for the first outlet). They advise on operations, standards, purchasing, advertising, and administrative procedures through the manual, bulletins, phone consultations, and on-site visits. Tide Cleaners continuously modifies System Standards and conducts inspections to ensure compliance. They also provide ongoing training courses, including quarterly webcasts, and require attendance at annual or regional conventions, with fees for additional attendees or certain courses.

Initial Training Hours

217

Training Location

Cincinnati, Ohio, or other designated training facilities or operating Tide Cleaners Outlets, including virtual options for orientation and self-directed computer-based courses.

Ongoing Support

After opening, Tide Cleaners provides ongoing assistance and training. This includes advising on the outlet's operations, standards, specifications, and operating procedures based on franchisee reports and inspections. They guide franchisees on purchasing required and authorized assets, products, and advertising/marketing materials, as well as supervisory employee training methods and administrative procedures. This guidance is provided through the operations manual, bulletins, electronic media, phone consultations, and on-site visits. Franchisees have continued access to the manual and must implement modifications to System Standards. Tide Cleaners may also offer additional or special guidance upon request. Ongoing training includes mandatory attendance at various courses, such as quarterly webcasts, for the Managing Owner and experienced employees (up to 10 days annually). Franchisees must also send at least two representatives to annual and/or regional conventions (up to 3 days annually). If an outlet fails an assessment, Tide Cleaners may conduct follow-up assessments and provide additional training at the franchisee's expense.

Franchise Requirements

Ideal Candidate Profile

Tide Cleaners seeks franchisees (and their owners) who possess a specific character, skill, aptitude, attitude, business ability, and financial capacity. The Managing Owner, who can be one of the owners, is required to oversee and directly supervise the operation of the Tide Cleaners Outlet on-premises, dedicating full-time efforts to its management. In cases where a franchisee operates multiple Tide Cleaners Outlets or receives special permission, a pre-approved general manager who has completed initial training may supervise the Outlet. Franchisees must consistently adhere to the franchise agreement, diligently fulfill their contractual obligations, and actively promote the Outlet. For those interested in developing multiple locations, Tide Cleaners looks for individuals or entities with proven financial and operational capability.

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

limited

Territory Size Requirements

Tide Cleaners defines a typical territory as an area covering an approximate six-minute drive time from the front door of the outlet, with the premises located at the territory's approximate center. The size and boundaries are determined at Tide Cleaners' discretion, based on factors such as geographic area, population density, character of the neighborhood, and competition. All geographic areas comprising a college or university campus with student housing are excluded from the territory.

Staffing Notes

Tide Cleaners requires a Managing Owner to be appointed to oversee and supervise the outlet, devoting full time and efforts to its management. If a franchisee owns multiple outlets or receives special permission, a general manager approved by Tide Cleaners can directly supervise the on-premises operations. Franchisees are solely responsible for all employment matters, including hiring, firing, discipline, and determining terms and conditions for their employees. While Tide Cleaners provides optional guidance and materials for employment policies and procedures, these do not form part of the mandatory System Standards. Franchisees must also keep Tide Cleaners informed of any supervisory employees and ensure they sign non-disclosure and non-competition agreements.