How to Finance a Lyons Restores Franchise: Dry Cleaner Conversion
By Anthony Cornella
A Lyons Restores franchise loan usually finances a conversion rather than a new storefront: an existing dry cleaner or restoration operator adds the brand’s insurance restoration program for garments, textiles and other personal property. Because the buyer already has a plant, staff and customers, the financing question is how much new capital the conversion needs and how the existing business supports it.
This article walks through the brand’s 2026 Franchise Disclosure Document (FDD) figures, the ongoing fees that affect cash flow, the brand’s SBA Franchise Directory listing and the loan structures that fit a conversion or a new depot location.
US Professional Funding is not affiliated with, sponsored by or endorsed by Lyons Restores; the name is used only to describe the business. Figures from the franchisor’s 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.
Lyons Restores Franchise Loan at a Glance
- Franchisor: Evans Garment Restoration II, LLC, based in Memphis, Tennessee, franchising this business since 2014.
- Initial franchise fee: $40,000, according to the 2026 FDD.
- Estimated initial investment: $84,975 to $411,000 for a principal location conversion, and $123,600 to $339,900 for a depot location.
- Royalty: the greater of 6% of gross sales or a minimum royalty that begins in the second year.
- Brand development fund: 2% of gross sales.
- Annual franchise fee: $5,000 per year.
- Franchisor financing: none offered, per Item 10.
- SBA Franchise Directory: listed as Lyons Restores (Formerly Evans Garment Restoration) under code S0586, with no additional notes.
What Is Lyons Restores?
Lyons Restores provides personal property restoration for the insurance industry. The company’s website describes restoring clothing, electronics, art, rugs, soft goods and furniture after fire, flood, smoke, water or mold damage, along with pack-outs, pickup, storage and delivery. Textile restoration was its original focus, and the brand was formerly known as Evans Garment Restoration.
The franchisor is Evans Garment Restoration II, LLC, headquartered in Memphis. According to the 2026 FDD, it has offered this type of franchise since 2014, and its parent company has owned restoration businesses since 2000.
The conversion model. The FDD describes franchisees converting an existing dry-cleaning facility, or a facility that already provides restoration, into a Lyons Restores business. Franchisees with a principal location may later be offered depot locations in adjacent territories. A depot must support the principal location and be staffed by an account manager and a field representative.
Why lenders like conversions. A lender financing a conversion can look at the existing cleaner’s tax returns, equipment and customer base. That history makes the request easier to underwrite than a pure start-up, although restoration revenue depends on insurance claims and adjuster relationships that the plant may not have yet.
Lyons Restores Franchise Costs
Initial franchise fee. The 2026 FDD sets the initial franchise fee at $40,000, due when the agreement is signed and not refundable.
Facility and leasehold improvements. Because most franchisees convert an existing plant, leasehold improvements for a principal location range from $0 to $100,000 in Item 7.
Equipment, vehicles and technology. Operational equipment, computer hardware, required software and vehicles with the brand’s wrap are the main hard costs. Pickup and delivery are part of the service, so vehicles can be a large line item.
Opening costs and working capital. Item 7 includes additional funds of $20,000 to $100,000 to cover the conversion and the first three months of operation.
Total investment for a principal location (conversion). Item 7 of the 2026 FDD lists:
- Initial franchise fee: $40,000
- Training expenses (up to two people): $3,000 to $7,500
- Leasehold improvements: $0 to $100,000
- Initial inventory: $3,000 to $5,000
- Signage: $500 to $2,000
- Insurance (first three months): $0 to $4,000
- Business licenses and permits: $0 to $5,000
- Professional fees: $500 to $5,000
- Initial computer hardware: $6,900 to $15,000
- Certain operational equipment: $5,000 to $40,000
- Software: $6,075 to $7,500
- Vehicles and vehicle wrap: $0 to $80,000
- Additional funds (three months): $20,000 to $100,000
- Total: $84,975 to $411,000
Total investment for a depot location. The FDD estimates $123,600 to $339,900. Compared with a principal conversion, a depot carries higher operational equipment costs ($40,000 to $80,000) and approved vehicles and wrap of $10,000 to $40,000, because the depot is built to serve a new adjacent territory.
Ongoing Fees and How They Affect Your Loan
Royalty and minimum royalty. The royalty is the greater of 6% of gross sales, paid weekly, or a monthly minimum that starts in year two. For territories with fewer than one million households, the minimum is $1,000, $1,250, $1,500 and $1,500 per month in years two through five. For territories with one million or more households, it is $1,500, $2,000, $2,500 and $3,000. Lenders will treat the minimum as a fixed cost, so projections should show restoration revenue growing fast enough to cover it.
Brand development fund and annual fee. Franchisees contribute 2% of gross sales to the brand development fund and pay an annual franchise fee of $5,000.
Software and technology. Required software for a principal location costs $2,575 up front plus $705.55 per month. The technology fee runs $11.65 to $25.25 per user per month for three users.
Other fees. The FDD lists a transfer fee of $10,000 per location and a renewal fee of $5,000 per location, along with training, late payment and insurance-related charges.
How lenders factor these in. Lenders add royalty, fund contributions, software and the annual fee to the existing plant’s expenses, then test whether combined cash flow covers new debt. Because the dry-cleaning side already carries overhead, the conversion’s incremental revenue has to clear these new fixed costs.
Franchisor Requirements and Training
The FDD sections we reviewed do not publish a minimum net worth or liquidity requirement, so ask the franchise team for current criteria. The model is built for operators who already run a dry-cleaning or restoration facility.
Training. Item 11 describes training for several roles: the principal operator, an operations manager, a coordinator and an account manager. Across all trainees, the program totals 131 classroom hours and 150 on-the-job hours. Initial training is tuition-free for the required trainees, takes place in Memphis, at another designated location or at the franchised business, and must be completed at least 30 days before opening.
Opening timeline. The FDD estimates 90 to 120 days to open a conversion, up to 12 months for a new principal location and up to six months for a depot. These timelines matter for working capital planning, since software and technology fees begin before opening.
Ways to Own a Lyons Restores
Converting your dry cleaner. This is the core path. Financing covers the franchise fee, equipment, software, vehicles and three months of working capital, and the lender relies on your existing business history. Our article on financing a conversion franchise explains how lenders treat existing operators joining a brand.
Opening a depot. An established principal location may be offered a depot in an adjacent territory. Lenders underwrite depots using the principal location’s performance, since the depot has no history of its own.
Buying an existing franchise. A buyer acquiring a franchised plant pays a transfer fee and needs franchisor approval. Lenders base the loan on the business’s historical financials. See our overview of restoration business acquisition financing.
Financing Options for a Lyons Restores Franchise
SBA 7(a) loans. Because the brand is on the SBA Franchise Directory, an SBA 7(a) loan can fund the franchise fee, equipment, vehicles, software and working capital, and in some cases refinance or expand the existing cleaning business at the same time, subject to lender approval.
SBA 504 loans. Operators who own or want to buy their plant can use an SBA 504 loan for owner-occupied real estate and long-lived equipment.
Conventional term loans. An established cleaner with strong financials may qualify for a conventional business loan for the conversion.
Equipment and vehicle financing. Restoration cleaning equipment and wrapped pickup vans can be financed separately. Explore franchise equipment financing and leasing.
Working capital and lines of credit. Insurance restoration work is often paid after the claim is settled, so receivables can stretch out while payroll and supplies are due now. A line of credit helps bridge that gap. See our restoration working capital options and our article on managing restoration receivables.
Seller financing on resales. A seller may carry part of the price when a franchised business changes hands. Seller notes are typically subordinate to the senior loan, and some programs limit their terms.
SBA Loans for Lyons Restores Franchisees
SBA lenders generally require a franchise brand to be listed on the SBA Franchise Directory before making an SBA-guaranteed loan to a franchisee. Lyons Restores is listed under code S0586 as “Lyons Restores (Formerly Evans Garment Restoration),” with no additional notes. In plain terms, the franchise documents have been reviewed and no special conditions are attached, though each borrower still goes through normal underwriting.
The SBA 7(a) program maximum is currently $5 million, though program rules can change. Use our SBA loan calculator for early payment estimates, which are for planning only.
SBA application tips. For an SBA-backed Lyons Restores franchise loan, bring three years of business and personal tax returns for your existing cleaner, interim financial statements, a debt schedule, the FDD and franchise agreement, and projections that separate core dry-cleaning revenue from new restoration revenue.
How Lenders Evaluate a Lyons Restores Deal
Personal credit and financial history. Expect a review of credit, tax returns and a personal financial statement, and personal guarantees from owners.
Net worth and liquidity. Lenders want reserves left after the equity injection, especially given the minimum royalty and the time it takes insurance claims to pay.
Industry experience. Years running a dry-cleaning plant and any existing relationships with insurance adjusters or restoration contractors strengthen the request.
Business plan and projections. Show restoration volume ramping up, receivable timing, the royalty minimums by year and the staffing plan for account manager and field roles.
The FDD and franchise agreement. Lenders review fees, territory, term, renewal and transfer terms. Ask whether Item 19 includes financial performance representations. Our article on reading the FDD for financing covers what lenders look for.
Existing business financials. For a conversion, the plant’s track record is the foundation of the loan. Clean, consistent statements make a big difference.
Real-World Scenarios
A family cleaner adds restoration. A second-generation dry cleaner converts its plant, using an SBA 7(a) loan for the franchise fee, software, a wrapped van and working capital.
An operator opens a depot. After building a steady claims pipeline, a principal location owner is offered a depot in the neighboring territory and finances the equipment and vehicles based on the main plant’s cash flow.
A buyer purchases a franchised plant. A restoration manager buys an existing franchise from a retiring owner, combining an acquisition loan with a seller note and paying the transfer fee at closing.
Common Mistakes to Avoid
- Ignoring the minimum royalty when projecting the second through fifth years
- Underestimating how long insurance claims take to pay
- Forgetting that software and technology fees start before opening
- Financing vehicles and equipment without enough working capital left
- Mixing dry-cleaning and restoration revenue in projections instead of showing them separately
Read more in the loan mistakes restoration companies make.
Next Steps to Finance Your Lyons Restores Franchise
Step 1: Review the current FDD. Study Items 5, 6, 7, 11, 12, 17 and 19 with a franchise attorney and accountant.
Step 2: Organize your existing business records. Gather tax returns, financial statements and a debt schedule for your plant.
Step 3: Price the conversion. Get quotes for equipment, vehicles, signage and any leasehold work.
Step 4: Talk with a financing specialist. Compare SBA 7(a), conventional and equipment financing for your situation.
Step 5: Build projections. Model restoration revenue, claim payment timing and minimum royalties.
Step 6: Apply, sign and train. Coordinate loan approval with signing, finish training at least 30 days before opening and fund your reserves.
Lyons Restores Franchise Loan FAQs
How much does a Lyons Restores franchise cost?
The 2026 FDD estimates $84,975 to $411,000 for a principal location conversion and $123,600 to $339,900 for a depot location.
What is the Lyons Restores franchise fee?
The initial franchise fee is $40,000.
What royalty does Lyons Restores charge?
The greater of 6% of gross sales or a monthly minimum royalty that begins in year two and depends on territory size. Franchisees also pay 2% to the brand development fund and a $5,000 annual franchise fee.
Do I need to own a dry cleaner?
The FDD describes converting an existing dry-cleaning or restoration facility. It also gives an opening timeline for a new principal location, so ask the franchisor whether a new build fits your situation.
Is Lyons Restores eligible for SBA loans?
Yes. It is listed on the SBA Franchise Directory under code S0586 with no additional notes.
Does Lyons Restores offer financing?
No. Item 10 of the 2026 FDD states that the franchisor does not offer direct or indirect financing or guarantee franchisee obligations.
Can I finance vehicles and equipment separately?
Yes. Equipment and vehicle financing can preserve cash for working capital.
How long does it take to open?
The FDD estimates 90 to 120 days for a conversion, up to 12 months for a new principal location and up to six months for a depot.
What is the transfer fee if I sell?
The FDD lists a transfer fee of $10,000 per location, with a reduced administrative fee of up to $1,000 in certain transfers.
Can a first-time owner get a Lyons Restores franchise loan?
The model targets existing dry-cleaning and restoration operators, so most borrowers already have business history. A buyer acquiring an existing franchise can also qualify based on that business’s financials.
Does the FDD include financial performance information?
Check Item 19 of the current FDD to see whether it includes financial performance representations.
Final Thoughts
A Lyons Restores franchise loan works best when it builds on a healthy existing plant. Owners who plan for the minimum royalty, keep enough working capital for slow-paying claims and present clean financials for their current business give themselves the strongest footing with lenders.
US Professional Funding helps franchise owners finance conversions, acquisitions, equipment and working capital. Learn more about our franchise financing and restoration and cleaning business financing solutions.
