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Mulberrys Garment Care

Gemini Cleaners LLC
https://www.mulberryscleaners.com
1-301-313-0389
8510 Corridor Road, Suite 200, Savage, Maryland 20763

How much does Mulberrys Garment Care cost?

Initial Investment Range

$205,250 to $1,198,000

Franchise Fee

$22,500 to $37,500

You will operate a premium, toxin-free dry cleaning, laundry, garment and fabric care, repair, and alterations business.

Enjoy our partial free risk analysis below

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Mulberrys Garment Care March 31, 2025 FDD Risk Analysis

Free FDD Library AI Analysis Date: August 19, 2025

DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.

1

Franchisor Stability Risks

Start Here
Total: 10
3
2
5

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

The FDD includes a “Special Risk” stating the franchisor's financial condition calls its ability to provide support into question. Audited financials for the parent/guarantor, Value Drycleaners of America, LLC (VDA), show operating losses in recent years and significant debt relative to equity. This financial weakness could impair the franchisor's ability to support you and grow the brand, even with a parent guarantee from a financially strained entity.

Potential Mitigations

  • An experienced franchise accountant must conduct a deep analysis of the parent company's audited financial statements, including all footnotes and cash flow statements.
  • Discuss the implications of the parent company’s operating losses and the validity of their guarantee with your franchise attorney.
  • Developing a business plan with your advisor that accounts for potentially limited franchisor support is a crucial step.
Citations: Item 21, Exhibit I

High Franchisee Turnover

High Risk

Explanation

Data for the master franchisor, Mulberrys Franchising, LLC, shows signs of system distress. In 2022, the system saw two franchised units cease operations and one company-owned unit close, a significant number for a small system. In 2024, all six company-owned outlets were sold or closed. This level of turnover and closure in the underlying brand you would operate under is a strong indicator of potential systemic problems, which could affect your own potential for success.

Potential Mitigations

  • Your business advisor should help you analyze the master franchisor’s turnover data in Item 20 to calculate the churn rate.
  • Contacting former franchisees from the list in Exhibit M is essential to understand why they left the system.
  • Discuss the high turnover rate and its potential causes with your franchise attorney before making any commitment.
Citations: Item 20

Rapid System Growth

Medium Risk

Explanation

The underlying Mulberrys brand is undergoing rapid growth, doubling its franchised unit count in 2024. This growth, combined with the franchisor being a new subfranchising entity and the parent company's financial weakness, creates a risk that support systems cannot keep pace. Rapid expansion can strain resources, potentially leading to inadequate training, site selection assistance, and ongoing operational support for new franchisees like you.

Potential Mitigations

  • In discussions with the franchisor, inquire about their specific plans to scale support infrastructure to match unit growth.
  • Speaking with both new and established franchisees of the Mulberrys brand can provide insight into the current quality of franchisor support.
  • A review of the franchisor's resource allocation and staffing plans with your business advisor is recommended.
Citations: Item 20, Item 21, Item 1

New/Unproven Franchise System

High Risk

Explanation

The FDD explicitly states this is a high-risk investment due to a limited operating history. Your direct franchisor, Gemini Cleaners LLC (Gemini), was formed in July 2023 and has only one franchisee. As a new subfranchisor for an existing brand, Gemini has an unproven track record of providing support, managing a franchise system, and fulfilling its obligations, which significantly increases your investment risk compared to joining an established, mature franchise system.

Potential Mitigations

  • Thorough due diligence on the backgrounds of the management team in both franchising and the specific industry is critical; a business advisor can assist.
  • It is crucial to speak with the single existing franchisee to understand their experience with the new franchisor's support and systems.
  • Your franchise attorney should help you assess the increased risks and potentially negotiate more protective terms in the agreement.
Citations: Item 1, Item 2, Item 20, Special Risks Section

Possible Fad Business

Low Risk

Explanation

This risk was not identified in the FDD package. Dry cleaning is a long-established industry, not a temporary trend. However, any business faces risks from shifting consumer behavior and economic changes. Assessing a business model's long-term resilience is always a key part of due diligence, as you are signing a long-term agreement that will outlast any short-term market trends.

Potential Mitigations

  • Engaging a business advisor to analyze the long-term market trends for the dry-cleaning industry in your specific area is advisable.
  • Your accountant can help you model the financial impact of potential shifts in consumer demand over the life of the franchise term.
Citations: Not applicable

Inexperienced Management

Medium Risk

Explanation

While the management team has extensive experience in the garment care industry with the ZIPS franchise, their experience is not with the Mulberrys brand. Furthermore, Gemini Cleaners LLC is a new entity established in 2023. This lack of direct experience managing this specific franchise system as this subfranchisor entity means their ability to provide effective brand-specific support and strategic direction is not yet proven, which could present challenges for you as a franchisee.

Potential Mitigations

  • A business advisor can help you investigate the management team's specific track record with adapting to new brands or business models.
  • It is important to ask the franchisor directly about how their experience with a different system translates to supporting the Mulberrys brand.
  • Discussing the potential risks of brand-specific inexperience with your franchise attorney is a prudent step.
Citations: Item 2, Item 1

Private Equity Ownership

Low Risk

Explanation

This risk was not identified in the FDD package. FDD Item 1 indicates ownership by other corporate entities, not a private equity firm. This avoids risks often associated with PE ownership, such as a focus on short-term returns over long-term system health. However, understanding the goals and stability of any parent company is still a vital part of due diligence.

Potential Mitigations

  • Your attorney should still confirm the corporate structure and identify the ultimate controlling parties of the franchise system.
  • A business advisor can help you research the reputation and history of the parent companies involved in the franchise.
Citations: Not applicable

Non-Disclosure of Parent Company

Low Risk

Explanation

This risk was not identified in the FDD package. Item 1 discloses the parent company structure, and Item 21 provides the audited financial statements for the guarantor parent, Value Drycleaners of America, LLC. While the financials themselves present risks, the franchisor has complied with the rule to disclose the parent and provide its financials when it is guaranteeing the obligations of the subfranchisor.

Potential Mitigations

  • Your accountant should thoroughly review the provided parent company financial statements and the terms of the guarantee.
  • Confirming with your attorney that the provided disclosures meet all federal and state requirements is an important step.
Citations: Not applicable

Predecessor History Issues

Low Risk

Explanation

This risk was not identified in the FDD package. Item 1 states that Gemini has no predecessors. This is technically true, as it is a new legal entity. This avoids the risk of inheriting undisclosed negative history from a prior company. However, it's important to recognize that Gemini is a subfranchisor for the existing Mulberrys system, whose history is relevant to your investment decision.

Potential Mitigations

  • Your attorney should help you understand the legal distinction between a predecessor and a master franchisor.
  • A business advisor can assist in researching the history and reputation of the master franchisor, Mulberrys Franchising, LLC.
Citations: Not applicable

Pattern of Litigation

Low Risk

Explanation

This risk was not identified in the FDD package. Item 3 states there is no litigation that requires disclosure. The absence of litigation against the franchisor can be a positive sign, suggesting fewer disputes with franchisees or regulators. However, this does not guarantee a conflict-free relationship, and you should still perform thorough due diligence by speaking with other franchisees.

Potential Mitigations

  • Your attorney can perform an independent public records search to verify the absence of significant litigation.
  • It is still advisable to ask current and former franchisees about any past or pending disputes, even if not disclosed in Item 3.
Citations: Not applicable
2

Disclosure & Representation Risks

Total: 15
3
1
11

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

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3

Financial & Fee Risks

Total: 10
5
3
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

4

Legal & Contract Risks

Total: 16
8
4
4

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

5

Territory & Competition Risks

Total: 5
4
1
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

6

Regulatory & Compliance Risks

Total: 10
6
2
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

7

Franchisor Support Risks

Total: 4
3
1
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

8

Operational Control Risks

Total: 12
6
6
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

9

Term & Exit Risks

Total: 18
11
3
4

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

10

Miscellaneous Risks

Total: 2
2
0
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.