How to Finance a Lapels Franchise: Eco-Friendly Dry Cleaning
By Marc Cornella
A Lapels franchise loan typically funds a dry cleaning store built around non-toxic cleaning solutions, a full counter-service menu and free home delivery. Lapels has been in business since 2000, is headquartered in Hanover, Massachusetts, and says it has nearly 100 locations in 16 states as of December 2025.
Lapels does not publish its fees or investment range outside its Franchise Disclosure Document (FDD), so this article focuses on what the company has said about its model, how dry cleaning equipment and build-out are financed, and what the brand’s SBA Franchise Directory note means for a borrower who owns the building.
US Professional Funding is not affiliated with, sponsored by or endorsed by Lapels or Clean Brands, LLC; the name is used only to describe the business. Figures from the franchisor’s website and disclosure document can change, loan programs and terms vary by lender and borrower, and every loan is subject to lender review and approval. Nothing here is legal, tax or investment advice, and buyers should review the current FDD and franchise agreement with a qualified franchise attorney and accountant.
Lapels Franchise Loan at a Glance
- Founded: 2000, headquartered in Hanover, Massachusetts.
- System size: nearly 100 locations in 16 states, according to the company in December 2025.
- Franchisor: Clean Brands, LLC.
- Concept: eco-friendly dry cleaning using non-toxic cleaning solutions, with counter service, pickup and delivery and 24/7 drop-off.
- Conversions: existing independent dry cleaners have converted to the brand.
- Fees and investment: not published outside the FDD; request Items 5, 6 and 7.
- SBA Franchise Directory: listed under code S0985, with a note about the Option to Assume Lease when the business real estate secures the loan.
What Is Lapels?
Lapels began in 2000 and celebrated 25 years in business in 2025. The company is headquartered in Hanover, Massachusetts, and its franchise system is operated by Clean Brands, LLC. The brand positions itself as a modern, environmentally friendly dry cleaner: the company says its locations use 100% environmentally non-toxic cleaning solutions that produce no hazardous waste and no odor and are gentler on clothes.
Services. Lapels lists a broad service menu: professional dry cleaning, professional wet cleaning, wash, dry and fold, shirt laundry, comforters and household items, alterations and repairs, gown preservation, leather and suede, shoe cleaning and repair, rug cleaning, and pickup and delivery alongside counter service.
Store design. The company’s newer store design features an open floor plan with large storefront windows, curbside pickup areas and a drop-off area with lockers and a kiosk for 24/7 access. The company also promotes free home delivery to its customers.
Why lenders view the brand the way they do. Dry cleaning is a repeat-customer, service-based business with meaningful equipment and build-out needs. A lender will appreciate a 25-year operating history and a system of nearly 100 locations, while studying the specific store’s market, its equipment and, for a conversion or resale, its actual sales history.
Lapels Franchise Costs
Lapels has not published its fees or estimated initial investment outside the FDD, so use Items 5, 6 and 7 of the current FDD for the actual figures. The categories below are typical for a dry cleaning franchise.
Initial franchise fee. Item 5 states the fee, when it is due and whether any portion is refundable. Ask whether conversions of existing cleaners are priced differently from new stores.
Real estate and build-out. Most dry cleaners operate from leased retail space. A store that cleans on-site needs a larger footprint, ventilation, utilities and plumbing to support cleaning, washing and pressing equipment, while a counter or drop-off location needs far less. The company’s design standards, including storefront windows, curbside pickup and a 24/7 locker area, also shape build-out scope.
Equipment. On-site cleaning requires cleaning machines, washers and dryers, pressing and finishing equipment, a boiler and compressor, garment conveyors, tailoring stations and point-of-sale technology. Delivery service adds one or more vehicles.
Opening costs and working capital. Training, initial supplies, grand opening marketing, deposits, insurance and an operating reserve for the ramp-up period all belong in the budget.
Total investment. Start with the Item 7 table, then replace its ranges with your own lease terms, contractor bids and equipment quotes. A Lapels franchise loan is sized from those real numbers.
Ongoing Fees and How They Affect Your Loan
Franchise agreements typically include a royalty on sales, a marketing or brand fund contribution and possibly technology fees. Lapels has not published its fee schedule outside the FDD, so review Item 6 carefully, along with any transfer, renewal and remodel obligations.
How lenders factor these in. A lender subtracts rent, royalties, marketing contributions, labor, supplies and utilities before calculating how much debt the store can support. Dry cleaning has relatively high fixed costs for rent and equipment, so a realistic sales ramp and conservative cash-flow assumptions matter.
Franchisor Requirements for New Owners
Lapels has not published minimum net worth or liquid capital requirements outside the FDD. The franchisor will review each candidate’s finances, background and business experience. The company has promoted franchise opportunities for veterans, and Lapels franchisees include owners who previously ran independent dry cleaners.
Ask the franchise development team for the current requirements and the steps in its approval process, and confirm whether those requirements differ for new stores, conversions and multi-unit owners.
Ways to Own a Lapels
A new store. A new Lapels requires a site, a lease, build-out and equipment. Lenders underwrite these deals on projections, the owner’s experience and the strength of the trade area. Learn more about start-up financing for laundry and cleaning businesses.
Converting an existing dry cleaner. The company has converted existing independent cleaners to Lapels stores, and one franchisee described the chance to convert cleaners with an established customer base as the most appealing part of the model. A conversion gives a lender actual sales history to underwrite, and financing usually covers rebranding, equipment upgrades and working capital, sometimes combined with refinancing existing debt. Read about conversion franchise financing.
Buying an existing Lapels. Buying an operating store from a current franchisee requires the franchisor’s approval of the transfer. Lenders can base the loan on the store’s historical financials. Our guide to buying a franchise resale covers transfer approval and timing, and our page on laundry business acquisition financing explains how these purchases are structured.
Financing Options for a Lapels Franchise
SBA 7(a) loans. Because Lapels is on the SBA Franchise Directory, an SBA 7(a) loan can finance the franchise fee, build-out, equipment and working capital for a new store, a conversion or the purchase of an existing store.
SBA 504 loans. When an owner buys the building, the SBA 504 program can finance the real estate and long-lived equipment such as cleaning machines and boilers. See the SBA section below for the directory note that applies when real estate secures the loan.
Conventional term loans. Experienced operators with strong financials may use a conventional business loan, particularly when buying an established store.
Equipment financing. Cleaning machines, washers, dryers, pressing equipment, boilers, conveyors and delivery vehicles can be financed separately through laundry equipment financing and leasing, preserving cash for the build-out and opening.
Working capital and lines of credit. Dry cleaning demand can shift with seasons, weddings and formal events, and a new store needs time to build its customer base. A working capital reserve or line of credit helps cover payroll, supplies and delivery costs. See our working capital options.
Seller financing on resales. On the purchase of an existing store, a seller may carry part of the price. A seller note is typically subordinate to the senior loan, and SBA programs may limit how it can be structured.
SBA Loans for Lapels Franchisees
SBA lenders generally require a brand to appear on the SBA Franchise Directory before making an SBA-guaranteed loan to one of its franchisees. Lapels is listed under code S0985.
What the directory note means. The note says that when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Option to Assume Lease may not be executed. In plain English, many franchisors use a lease rider that lets them step into the store’s lease if the franchise ends. If the borrower owns the building and pledges it as collateral for the SBA loan, that option cannot be signed, because it would conflict with the lender’s rights in the property. Borrowers who lease their space are not affected by this condition.
The SBA 7(a) program maximum is currently $5 million, although program rules can change. Directory status and notes can change too, so confirm them with your lender when you apply.
Application tips. A Lapels franchise loan request moves faster with the current FDD, the proposed franchise agreement, a lease or purchase contract, contractor bids, equipment quotes and, for a conversion or resale, several years of financial statements.
How Lenders Evaluate a Lapels Deal
Personal credit and financial history. Expect a review of credit, tax returns and a personal financial statement, plus personal guarantees from significant owners.
Net worth and liquidity. Lenders want to see the equity injection plus reserves for the ramp-up period and equipment repairs.
Industry and management experience. Prior dry cleaning, retail or service-business management experience strengthens a request, along with completion of the franchisor’s training.
Business plan and projections. Projections should reflect the trade area’s households and workplaces, competing cleaners, the delivery radius and a realistic customer ramp. Our article on how lenders read a Franchise Disclosure Document explains which items support those projections.
The FDD and franchise agreement. Lenders review the term, renewal and transfer conditions, any franchisor financing in Item 10 and whether Item 19 includes financial performance representations.
Site and lease. The lease term should generally cover the loan term, and the lender will review assignment provisions and, for leased sites, any lease rider in favor of the franchisor.
Historical financials. For a conversion or resale, expect to provide several years of profit and loss statements and sales reports that tie to tax returns.
Equipment and Environmental Considerations
Equipment is often the largest single cost in a dry cleaning store and a key source of collateral. Lenders will want to know the age and condition of existing machines in a conversion or resale, the cost of replacing them and whether the new equipment meets the brand’s standards.
The brand’s use of non-toxic cleaning solutions also matters to lenders. Older dry cleaning sites can carry environmental concerns from past solvent use, so an environmental review of a site with prior dry cleaning history is common, especially when real estate secures the loan. Budget time and money for that review when converting an existing cleaner.
Multi-Unit Growth
Owners who succeed with one store may add more locations or convert additional independent cleaners. A lender can underwrite an existing store’s cash flow alongside the next location, and owners often finance each store separately before consolidating debt as they grow.
Real-World Scenarios
An independent cleaner converting to Lapels. The owner of a long-running independent dry cleaner converts to Lapels, using an SBA 7(a) loan for rebranding, new equipment and working capital. The lender bases the loan on the store’s existing sales history.
A veteran opening a new store. A veteran with management experience leases a space in a busy shopping center and finances the build-out, equipment and opening costs with an SBA 7(a) loan, plus a separate equipment lease for a delivery vehicle.
An owner buying the building. An existing franchisee buys the building its store occupies with an SBA 504 loan. Because the real estate secures the loan, the Option to Assume Lease is not executed, consistent with the directory note.
Common Mistakes to Avoid
- Budgeting without the Item 7 table from the current FDD
- Skipping an environmental review on a site with prior dry cleaning history
- Underestimating equipment replacement costs in a conversion or resale
- Overlooking the directory note when real estate will secure the loan
- Leaving too little working capital for the customer ramp-up
- Signing a lease shorter than the loan term
For more pitfalls, read the laundromat loan mistakes that cost owners the most.
Next Steps to Finance Your Lapels Franchise
Step 1: Request the FDD. Contact the franchise development team and request the current FDD and requirements.
Step 2: Review it with advisors. Study Items 5, 6, 7, 10, 17 and 19 with a franchise attorney and accountant.
Step 3: Choose your path. Decide between a new store, a conversion or a resale, and gather site, equipment and financial information.
Step 4: Estimate your loan. Our SBA loan calculator can help with early payment estimates, which are for planning only and are not an offer or approval.
Step 5: Apply for financing. Submit your personal financial statement, tax returns, business plan, projections and franchise documents.
Step 6: Close and open. Coordinate the loan closing with lease signing, equipment delivery and training, and keep working capital available.
Lapels Franchise Loan FAQs
How much does a Lapels franchise cost?
Lapels does not publish its fees or investment range outside the FDD. Your cost depends on the site, whether you clean on-site, equipment and whether you are converting an existing cleaner.
Can I get an SBA-backed Lapels franchise loan?
Yes, if you qualify. Lapels is listed on the SBA Franchise Directory under code S0985.
What does the SBA note about the Option to Assume Lease mean?
If the business real estate secures the SBA loan, the franchisor’s option to assume the lease may not be executed. It does not affect borrowers who lease their space.
Can I convert my existing dry cleaner to Lapels?
The company has converted existing independent cleaners to the brand. Ask the franchisor about current conversion terms.
How many Lapels locations are there?
The company said in December 2025 that it has nearly 100 locations in 16 states.
Can I finance dry cleaning equipment separately?
Often, yes. Cleaning machines, pressing equipment, boilers and delivery vehicles can be financed or leased apart from the main loan.
Can I buy an existing Lapels store?
Yes, with the franchisor’s approval. Lenders can underwrite the store’s historical financials.
Does Lapels offer financing?
Item 10 of the FDD discloses any financing the franchisor offers.
How long is the franchise term?
The term, renewal and transfer rules appear in Item 17 of the FDD.
Does the FDD include financial performance information?
Check Item 19 of the current FDD; we make no profitability claims.
Final Thoughts
A Lapels franchise loan combines a 25-year brand with a dry cleaning business’s heavy equipment and build-out needs. Buyers who get the FDD early, review the equipment and environmental history of any existing site and understand the SBA note on real estate give themselves the best chance at a smooth opening or conversion.
US Professional Funding helps franchise owners and buyers finance start-ups, conversions, acquisitions, equipment and working capital. Learn more about our franchise financing and laundry and dry cleaning financing solutions.
