Top 10 Laundromat Franchise Opportunities

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.

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%.

The Top 12 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.

3. Maytag

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.

4. Supersuds

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.

6. WaveMAX

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.

8. Martinizing

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.

9. Statewide

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.

10. Laundrylux

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.

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

One of the trends is in the mindset of the customer, who opts for an eco-friendly service that uses less water and energy. The customer also wants to be able to either multi-task or relax, so WIFI and television are the norms.

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.

Image: Envato Elements

This article, “Top 10 Laundromat Franchise Opportunities” was first published on Small Business Trends