There are more than 30,000 laundromat locations and more than 21,000 owners of laundromats. With these stats, it’s obvious there is no single leader. Many customers of laundromats don’t have in-unit washers and dryers. With more neighborhoods consisting of renters (around 10 million in the 2010s), there will be room for growth in the industry.
Why would you want a laundromat franchise?
Modern laundry equipment allows the customer to pay with cards and mobile payments, along with cash and coins. In other industries, there may be a 30-60 day payment cycle. There is no lead time in the laundromat industry. This alleviates much of the small business cash flow problems — 82% of small businesses fail due to cash flow problems, according to Business Insider.
The US government declared laundromats and laundry services essential businesses during the recent pandemic. Investing in a business that can survive during economic changes is one to strongly consider.
Full-time, on-site ownership isn’t needed. Advances in technology with washers and dryers allow laundromat owners to view equipment usage, performance, and malfunctions from anywhere, with laundromat customers being virtually self-served.
The Tax Cuts and Jobs Act of 2017 provided owners extra tax incentives on washers and dryers through January 1st, 2023 that include bonus depreciation and more.
Simple Labor. Store owners have an average of between 1-2 full-time employees and 4-5 part-time employees to manage. Very minimal training is required to get attendants up to speed on laundromat operations.
Marketing expenses for laundromats are low compared to many other industries. Most customers are within a 2-mile radius and see the location as they drive or walk by. Site selection and organic search are important to be successful.
Franchisees do not need a lot of equipment to operate a laundromat. 1-2 vending machines of laundry products and snacks are enough to meet and exceed customer demand.
The industry average for a laundromat has a cash-on-cash ROI of 20-35%.
Are you interested in learning more? Let’s schedule a call.
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