How Much Is a Laundromat

October 9, 2022

How Much Is a Laundromat in 2022? Laundry Business Investment

Read More

How Much Is a Laundromat in 2022? Laundry Business Investment

Unconventional Acquisitions

October 9, 2022

A Laundromats Business costs anywhere between $50,000 to over $4 million in 2022. Cost depends on business size, location, included inventory, equipment, et cetera, et cetera.

How Much Is a Laundromat

How much is that business in the window? The one with machines going ’round?

If I buy that business in the window, I’ll build on success that I’ve found!

If you’re new around here then you probably haven’t heard us shout it from the rooftops just yet, but we’ll be the first to tell you that laundromats can make you a lot of money.

You may be wondering… 

Sure, I can build a business from cleaning people’s dirty clothes buuuuut how much does a laundromat actually cost? Should I buy one just because the cool kids (aka us) tell me to? 

Only you can answer the second question, but we can help you with the first. Pro-tip: peer pressure from the right people might just be the bump you need to make that first business move.

Why Laundry?

One more time for the people in the back… Laundromats are smart business investments, especially if you want to fulfill that dream of quitting your 9-5 and traveling to Santorini for 6 months. 

Laundry doesn’t ebb and flow with trends. It’s as simple as people’s clothes getting dirty and they need to be washed. 

Pretty straightforward.

What’s great is that laundromats are usually a low-risk operation and it won’t cost you hundreds of thousands to buy. Apart from some expensive machines, operating costs are usually low and predictable.

Once you buy the business, you can either operate the laundromat yourself or hire employees. If you run a self-serve operation, you may or may not need someone on-site at all times.

Laundromats offer excellent options for passive income and growth potential. If your first one is successful, you can take the exact formula you used for the first to go ahead and buy or open a second one. 

More money in the bank.

Let’s talk in detail about how much is a laundromat business in today’s market.

How Much Is It to Buy a Laundromat?

Ok, let’s get into the good stuff.

How much does it cost to buy a laundromat? 

Prices vary for sure. A small one-location midwest laundromat is gonna be cheaper than a multi-location NYC operation. That’s obvious. 

Why are some business buying answers so irritatingly similar? Cost depends on business size, location, included inventory, equipment, et cetera, et cetera. Laundromats are no different. There are too many variables from business to business to place them all in one load and generalize pricing.

Do you plan to start from scratch or buy an existing business? The answer informs your laundry business price tag.

Start Spinning From the Ground Up

Ready to enter the great-wide laundry land armed with nothing but a few Tide Pods and ambition? Starting a new business has its advantages. It can also be a lot more labor-intensive than buying an existing business.

Sudsy self-starters can expect to get in the game for a minimum of $200,000. If you don’t have that kind of coin in your pocket, consider some creative financing options. Stay tuned; more on that later.

Still convinced you want to start the Laundry Company of Me, LLC? 

You absolutely have your reasons. You will be able to call the shots from the start. No existing employees or proverbial dirty laundry to manage.

You should also be prepared to set up all inventory, leases, licenses, maintenance programs, and technology. If this kind of work excites you, you’re definitely on the right thread. If you’d like to stop mid-spin and get out, buying an existing business may be a better fit.

Let’s not forget some of the hidden start-up costs. Yep, we talked about equipment and leases, but what about the hidden expenses. When asking how much does a laundromat cost we can’t skip these big-ticket items. How about running electricity, gas, and plumbing to your laundry machines? What about any local sewer and waste impact fees? When you start from scratch, these can be rather large barriers to entry. Let’s not forget the large water heater, or two or five.

Buy. Run. Repeat Cycle.

Does starting with no inventory, location, or existing clients make you want to throw in the towel and hit cold/cold? 

If so, you’re better off buying a cycle of success from someone else. A laundry business that’s already up and running means a lot of the initial work has already been done. Something we love to hear, the less work the better. 

You can expect to spend anywhere between $50,000 to over $4 million on an existing laundromat business. Price tags depend on owners’ input costs, inventory, location(s), and cash flow and age and size of the commercial washers and dryers. Ask the seller to share their success methods with you and take those nuggets of wisdom with you. Average costs for laundromats turning less than $1 million in revenue tend to be in the $300K – $800K range.

Buying an existing laundromat means building on to something and making it your own. This is the fun part, once you’re in the laundry groove you can start to improve things.

Do the Due

Existing businesses may come with a few problemos. 

Since nobody is perfect (not even you), you can expect a small issue or two. If you haven’t done your due diligence, you may be in for some unexpected surprises.

Due diligence is all the boring research you need to do to get the lowdown from the existing business. You can start with a simple list of documents you’d like the seller to provide. Next, you’ll sort through everything to see if they have dirty laundry they’ve not aired to you.

Once your due diligence is done diligence, you can send the current owner a letter of intent (more on this later). If you have a buying team, bring them in early on in this process to prevent things from falling through the cracks. 

Don’t Be Afraid to Ask

Now it’s the seller’s turn to answer some of your questions. 

Why are they selling this business? Retirement, relocation, or selling to finance their next business venture are normal, legit reasons.

If the seller is too eager to offload the business and/or won’t give you a reason for their sale, keep moving. There are plenty of cycles on the machine, and you’re bound to find one that’s the right fit.

How Can I Invest in a Business Like This?

Sure, this all sounds great! But do you have $50,000 to $4 million lying around? Probably not.

So, how are you supposed to come up with that kind of capital?

You aren’t. 

Yes, you read it right. With creative financing, you can invest in a company with little to no money of your own. Here’s how.

Seller Financing

Yes, you can in fact buy a business with zero of your own money. This may involve a bit of negotiating, but it’s nothing you can’t handle.

Once you’ve secured seller financing, you can watch your debt roll down as your laundry business brings in all that cash.

If you’d like to buy Lacey’s Laundry but don’t have the capital, you can approach Lacey and ask her to become your lender. Why would she want to do this?

  1. She gets a front-row seat to watch her business’ success as you rock your ownership role.
  2. You’re more motivated to aggressively grow the business and pay down your Lacey Loan.
  3. You and Lacey set the terms like collateral, interest, and payoff dates (not the bank/financial institution).

You can offer a certain percentage as a down payment or up your collateral level if Lacey doesn’t go for it. She might just be too old school for the deal. That’s alright. At least you both leave the conversation more informed than when you began, right?

Before you become the great laundry negotiator, check out what we have to say about making great deals. You want to make things attractive for the seller and realistic for both of you.

Traditional Lending

Banks and credit unions are popular ways to get traditional financing. Most financial institutions need background checks, proof of income, collateral, and maybe your left kidney.

Some borrowers prefer traditional business loans. Others may try private lenders or crowdfunding.

Whatever your flavor, always make sure you understand the terms of the loan. Are there penalties for paying off early? Is the interest rate adjustable or fixed?

Nowadays, you can find legit online lenders as well. Remember to alwaaaaays do your due diligence when dealing with online lenders. Make sure they’re in good standing, registered in their state, and (this is VERY important) they’re not scamming you. Sites like business.org can help you out with this.

Location Breakdown

Cue the phrase you’ve read at nauseam. 

Location, location, location. 

Overused? Absolutely. Still true? Annoyingly, yes.

Strategically placed laundromats near multi-family dwellings, shopping centers, or schools usually see more business. It’s all about convenience. Can the people who need your service see it and access it easily? If your storefront is tucked away in an industrial park, the nice people who need their clothes washed won’t find you.

Do you offer adequate parking? How easy can people haul their heaps of dirty clothes from said parking lot to the washing machines? These are all important things to consider when building or buying a business. Is the real estate included or is it a lease?

What Are Your Intentions With My Business?

If you think you’ve found the Downy to your dry cycle, let the owner know you’re interested. You can do this through a Letter of Intent. This non-binding document acts as a sort of road map for the business seller.

An LOI outlines the price and financing structure, confidentiality, contingencies, and timelines. It’s also a way to get access to non-public information from the seller. After you send your LOI, the seller knows you mean business and can trust you with more detailed info.

Still not sure how to write that LOI? We can help you out with that! Read more about it here.

Recurring Costs Strike Again

Before you lock the lid on that laundry company, calculate all the recurring costs. Things like subscriptions, scheduled services, cleaning, rent, and taxes. Franchises often take a percentage of your wages as well.

It’s one thing to buy a business but a whole other thing to keep it running. If you won’t have funds to keep your dryers tumbling, your business might be crumbling. 

Most existing laundromats that make money will continue to do so under good ownership and management. If you can build on the previous owners’ success, you shouldn’t have any trouble keeping coins coming in.

Buying Your First Laundry Business

Ok, so how much is a laundromat in the window? Since each business is unique, sweeping generalizations and formulas aren’t always helpful. Do you know what IS helpful? Learning from the pros.

If you’re ready to stop spinning your agitator and complete the purchase cycle, we can help. We want to help you reach your business goals and dreams the smart way. Sign up for our Laundry Buying Master Class today to find your sudsy success in the laundry biz.

Contact Us

In A Nutshell, Tell Us About Your Goals

More To Explore

How We Make Good $$$ While Traveling With Our Family

How We Make Good $$$ While Traveling With Our Family

Your idea of being a business owner probably involves adrenal fatigue that drives you to natural medicine…   …or working 8…

Read More >>

November 11, 2022

Buying a Vending Machine Business

How to Invest in a Profitable Vending Machine

Remember the days when you’d spend the $5.00 your parents gave you for lunch money on gobstoppers and Gatorade from…

Read More >>

November 11, 2022

How to Find a Biz to Buy

How to Find a Good Business to Buy: 4 'UA' Ways

At this point, you probably realize that buying boring businesses is *the* way to give you that extra stream of…

Read More >>

November 11, 2022