The laundromat industry has been strong since the 1900s and is now poised for even stronger growth. Do people still need laundromats? Remember, during the pandemic, laundromats were considered “essential businesses.”
One of the main reasons for that growth is advances in technology that improve the “doing the laundry” experience:
- Smart Phone users can connect with laundry equipment such as washers and dryers, to check the status of their laundry in the wash and dry cycles. Also, they can pay through Apps.
- Franchise designs often include flat-screen TVs, WIFI, and even children’s play areas.
- As a franchise, the laundromat has a very low failure rate, with more than 90% of new businesses still running strong after five years.
- There are laundry franchise opportunities to fit the type of business best for your area. For example, a laundromat franchise can be totally self-serve, or you can add laundry services such as wash, dry and fold services.
Understanding the Laundromat Business Model
Let’s delve into the business model. There are two main franchise types.
Laundromat franchise – Washers, dryers and an inventory of products (detergent, dryer sheets). The franchisor helps with choosing and securing the location, design of the laundromat franchise and marketing.
Laundromat equipment franchise – This type of franchise focuses on providing commercial quality equipment at your predetermined location. For example, the owners of an apartment complex could like to set up a laundry business in the building for tenants’ use.
Or, the owner of a vacant commercial property in a busy downtown area installs a laundromat franchise or equipment franchise for the use of local business people.
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How Does a Laundry Service Franchise Work?
The franchise fees are typically low, but the franchisee needs to have a good amount of liquid cash available. That number ranges from $100,000 to $300,000. Franchise fees range from $30,000 to $75,000. Some have no franchise fees, but the required amount of liquid cash is higher.
Both franchisor and franchisee benefit from a name brand association that helps build the customer base—also, both benefit from having access to quality, dependable commercial equipment at a reasonable price.
After the startup, the laundromat owners then focus on maintenance and utilities. In most laundry businesses, there are few employees unless additional services are added, such as washing, drying and folding, or pickup and delivery.
How Profitable is the Average Laundromat?
The average traditional coin laundromat nets from $15,000 to $100,000 annually.
The average laundry franchise does much better. There are laundry franchises that are clearing $10,000 to $40,000 MONTHLY. The estimated Return on Investment ranges from 20 to 35%.
Choosing the Best Laundromat Franchise: Our Methodology
When it comes to selecting the right laundromat franchise opportunity for your small business, making an informed decision is crucial. We understand that you want to invest in a franchise that aligns with your goals and offers a promising return on investment. To help you in this process, we’ve developed a set of criteria to evaluate and choose the best laundromat franchise. Here’s our methodology:
- Location and Demographics (Rating: 5):
- Proximity to your target market: Ensure the franchise is located in an area with a high demand for laundry services.
- Demographics: Analyze the local population’s income levels and lifestyle to match your offerings.
- Franchise Reputation and Support (Rating: 5):
- Track record: Research the franchise’s history, success stories, and any past issues.
- Training and support: Assess the quality and extent of training, ongoing assistance, and marketing support provided by the franchisor.
- Initial Investment and ROI (Rating: 4):
- Initial costs: Calculate the total investment required, including franchise fees, equipment, and lease expenses.
- Projected ROI: Determine the time it will take to recoup your initial investment and start generating profit.
- Competitive Analysis (Rating: 4):
- Market competition: Evaluate the number and strength of competitors in the area.
- Unique selling proposition: Identify what sets your chosen franchise apart from the competition.
- Licensing and Compliance (Rating: 3):
- Licensing requirements: Ensure that the franchise complies with all local, state, and federal regulations.
- Environmental regulations: Consider any environmental standards related to water and energy usage.
- Equipment and Technology (Rating: 4):
- Modern equipment: Check if the franchise uses state-of-the-art laundry machines for efficiency and customer satisfaction.
- Technology integration: Assess if the franchise offers mobile apps or online scheduling to enhance customer convenience.
- Financial Viability (Rating: 4):
- Financial statements: Review the franchisor’s financial health and stability.
- Growth potential: Investigate if the franchise has plans for expansion and market penetration.
- Franchise Agreement Terms (Rating: 3):
- Contract terms: Carefully read and understand the terms of the franchise agreement, including renewal options and exit strategies.
- Royalties and fees: Assess ongoing royalty fees and other financial obligations to the franchisor.
- Customer Reviews and Feedback (Rating: 3):
- Online reviews: Research customer feedback and reviews to gauge customer satisfaction and identify areas for improvement.
- Reputation management: Assess how the franchise handles and addresses customer complaints.
The Top 10 Laundromat Franchise Opportunities
Which is the best laundromat franchise? In today’s world, many customers make it a point to be eco-friendly by reducing water and energy use. They also want cleanliness and comfort so that a chore is made as pleasant as it can be.
1. Eco Laundry Company
The Eco Laundry Company has set the standard for environmental consciousness. The Eco Laundry franchise uses energy-efficient machines, and the business is run 100% using wind energy. The franchise fee is $30,000 and you’ll need a minimum of $230,000 in liquid cash.
2. Speed Queen
Speed Queen has a cloud-based management platform for managers and offers customers App-based payments. Services such as pick up/delivery and wash, dry, and fold can be added with the Speed Queen franchise. You’ll need $300,000 in liquid cash and a net worth of $2 million.
Maytag also has commercial equipment that allows cashless payments and remote monitoring by customers (of the wash and dry cycles). You’ll need $75,000 in liquid cash. Financing is available privately through Maytag through its partnership with Eastern Funding.
The Supersuds franchise is currently only available in Virginia and Pennsylvania. Supersuds will help the franchisee secure a location and design the facility. The Supersuds facility will include flatscreen TVs, WIFI, and radio. You’ll need $100,000 in liquid cash.
5. Zoom Express
The Zoom Express laundry franchise is available in Michigan, Texas, Florida and Pennsylvania. Zoom Express offers credit card and mobile payments. You’ll need $100,000 in liquid cash and the franchise fee is $39,500. As the name implies, the franchise focuses on speedy wash and dry times.
The WaveMAX franchisor plan includes a detailed, in-depth analysis of the proposed location or locations in the target area. The company will analyze the potential for customers. The WaveMAX franchise fee is $49,950 and you’ll need $200,000 in liquid capital.
7. Express Laundry Center
The Express Laundry Center is also a franchise that focuses on time-saving wash and dry commercial equipment. There is no franchise fee for an Express Laundry Center, but you need $250,000 in liquid cash.
The Martinizing franchise is most aimed at providing dry cleaning services but also offers laundry services, including wash, dry and fold. Another service is “bulk” laundry, such as business uniforms. The franchise fee is $69,500 and you’ll need $420,000 in liquid cash.
Statewide is a franchise that’s available in Florida, Georgia, North Carolina, South Carolina and Virginia. The Statewide franchise is a supplier of Speed Queen equipment and focuses on the development and construction of new facilities, as well as the refurbishing of existing laundromats. Your amount of liquid cash determines how much equipment you can buy.
Like Statewide, Laundrylux focuses on helping existing laundromats upgrade equipment to its line, called Wascomat. Laundrylux focuses on setting up in commercial buildings. The Wascomat line includes App-based and cashless payment systems.
|Franchise||Key Features||Franchise Fee||Liquid Cash Required|
|Eco Laundry Company||Environmental consciousness, energy-efficient machines, wind energy||$30,000||$230,000|
|Speed Queen||Cloud-based management, App-based payments, additional services||Not specified||$300,000|
|Maytag||Cashless payments, remote monitoring, financing options||Not specified||$75,000|
|Supersuds||Facility design with amenities like flatscreen TVs, WIFI, and radio||Not specified||$100,000|
|Zoom Express||Speedy wash and dry times, credit card and mobile payments||$39,500||$100,000|
|WaveMAX||Detailed analysis of proposed locations, franchise support||$49,950||$200,000|
|Express Laundry Center||Time-saving wash and dry equipment, no franchise fee||Not specified||$250,000|
|Martinizing||Dry cleaning and laundry services, bulk laundry, financing options||$69,500||$420,000|
|Statewide||Supplier of Speed Queen equipment, new facility development||Not specified||Varies|
|Laundrylux||Equipment upgrades, commercial building focus, App-based payments||Not specified||Not specified|
Comparing Laundromat Franchise Opportunities: What to Consider
If you want to run the best laundromat franchise, location is probably the top priority. You must have a location that’s convenient to customers, even if you’re going to offer pickup and delivery. Of course, you want to be a good distance from any competitor.
The Future of the Laundry Industry: Trends to Watch
The laundry industry is evolving to meet the changing needs and preferences of customers. Here are some key trends to watch for in the future:
- Eco-Friendly Services: Customers are increasingly seeking eco-friendly laundry services that prioritize sustainability. This includes using technologies and practices that minimize water and energy consumption, as well as using biodegradable detergents and environmentally friendly cleaning processes. Offering such services can attract environmentally conscious customers and differentiate your business in the market.
- Enhanced Customer Experience: In today’s fast-paced world, customers value convenience and relaxation. Laundry facilities that provide amenities like WIFI connectivity and television screens create a more enjoyable and productive experience for customers. By offering these features, you can cater to customers who prefer to multitask or unwind while their laundry is being done.
- Technological Advancements: The laundry industry is embracing technology to improve efficiency and customer satisfaction. From mobile apps for scheduling pickups and deliveries to smart laundry machines with automated cycles, technology is streamlining operations and enhancing the overall laundry experience. Keeping up with technological advancements can help you stay competitive and meet customer expectations.
- Personalized Services: Customers appreciate personalized services that cater to their specific needs and preferences. Offering options like fragrance customization, fabric-specific treatments, or specialty cleaning services can set your business apart and create a loyal customer base. Understanding and addressing individual customer requirements can lead to increased satisfaction and repeat business.
- Subscription and Delivery Services: The rise of subscription-based models and on-demand laundry services is transforming the industry. Customers are looking for convenient options that save them time and effort. Offering subscription plans for regular laundry pickups and deliveries or providing on-demand services through a mobile app can attract busy customers who prioritize convenience.
By keeping an eye on these trends, laundry businesses can adapt and stay ahead in the evolving industry landscape. Embracing eco-friendly practices, enhancing the customer experience, leveraging technology, providing personalized services, and exploring subscription and delivery models can position your business for success in the future.
FAQs: Laundromat Franchise
What is the average startup cost for a laundromat franchise?
The average start-up cost for laundromat franchises is $200,000 to $300,000, including a franchise fee and cost of equipment.
Are laundromat businesses profitable?
Yes. The Return on Investment is 20-35%, and some franchises report earnings of $10,000 or more per month.
How does an eco laundry company differ from a traditional laundromat franchise?
An eco-friendly laundry focuses on using less water and energy and may use alternative energy sources. For example, Eco Laundry uses wind energy.
What are the key factors in a successful laundromat business model?
Location, including proximity to customers.
How is the laundry industry expected to evolve in the coming years?
The successful business model will adapt to customer needs, which may include more add-on services such as wash, dry and fold, as well as pickup and delivery.
Is laundromat a good side business?
Yes. Once the start-up has been completed, the owner will focus on maintenance and utilities. The business can be run as a sole proprietor or with a minimal number of employees.
Can a laundromat make you a millionaire?
Yes. According to statistics, a modern laundromat can net $10,000 a month. Some make much more than that!
How can I make my laundry business stand out in a competitive market?
You can make sure your facility is clean and comfortable. In addition, you can offer services such as washing, drying and folding, and pickup/delivery.
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