What costs come with buying a dry cleaner besides the price?

The price is the figure everyone talks about, but a dry cleaner asks for money in other places too. Some costs come before closing, some on the day and some in the first months while the shop runs under new ownership. Listing them early lets you check them against your lender’s terms and your own cash, and keeps you from being surprised after the offer is accepted.

Before and at closing

Plan for the lawyer and the accountant, who will review the agreement and the financial records. A lender may ask for a site assessment, depending on its own policy and the shop’s history. Ask your lender early what it requires. Ask whether the landlord charges a fee for reviewing a transfer, and whether a deposit applies. Your lawyer can tell you what applies.

Equipment and the shop itself

Older machines may need servicing or parts soon after you take over. Ask a technician to estimate what the line needs in the first year, and keep a reserve for a breakdown. If the shop needs updating, such as new point-of-sale software or counter work, add that too. This guide to checking the presses and machines shows what to look for.

Working capital and insurance

Payroll, supplies and rent come due before the first customer payments arrive. Plan for enough working capital to cover the early months, especially if commercial accounts pay on terms. Ask an insurance broker about the coverage a dry cleaner needs, including garment damage. Do not assume the seller’s policy transfers to you.

Holdbacks and claims

Ask your lawyer about holding back part of the price, or setting aside money, for unclaimed garments and customer claims that arise from before you took over. What happens to customers’ garments when a dry cleaner is sold covers the ticket side. Write down who handles each claim and who pays.