Laundromat Investors & Financing
Why Invest in a Laundromat?
The answer is simple: Stability, flexibility, and excellent return on your investment.
A Sound Investment
Laundromats in the U.S. see an average cash-on-cash ROI of 20-35% — much higher than most alternative investments. And when you factor the flexibility and low labor costs, laundromats just make sense.
-
Nearly 94.8% success rate – All the benefits of a profitable investment––without all the risks.
-
Adaptable to your lifestyle – Enjoy the flexibility of running your laundromat the way that fits your lifestyle.
-
Tax advantages – In many countries, you can write off equipment purchases and claim equipment depreciation as a loss on your taxes. *Consult your tax advisor to see what tax advantages you are eligible for.
-
20-35% average ROI – An average cash-on-cash ROI of up to 35% is both impressive and advantageous when compared to other investments.
-
Low labor costs – Your machines do the work so you don’t have to. In fact, 70% of laundromat investors have 0-3 employees.
-
Simplified accounting – Customers pay up front using cash, coin or Smartphone activation, meaning laundromats don’t incur the cost, time and hassle of many other investments’ accounting requirements.
Laundromats vs. Other Investments
The Difference Is Clear
Compared to other investments like car washes, convenience stores and self-storage; laundromats just make sense.
-
Lower start-up costs*
-
Lower failure rates
-
Less upkeep and bookkeeping
-
Unaffected by seasonality
-
Fewer regulations
Laundromats vs. Franchise Investments
Many investors assume that franchise investments are safer because of their extensive support networks and brand recognition, but they often have a number of risks that laundromat investments typically do not:
-
Expensive franchise fees and ongoing royalties that significantly affect cash flow
-
Liquid capital requirements and the need for additional investments
-
Business decisions are often made by committee at the corporate level and can cause roadblocks
-
Long-term franchise agreements compromise freedom and flexibility to run your business the way you want
-
In-house financing and distribution networks are often unavailable
Owning A Laundromat
Is It RIght For You?
Before you make the leap into the laundromat investment process, it’s important to first determine your personal needs, budget and investment goals. Here are a few frequently asked questions to help you get started:
- Q:
How much do I need to invest?
A:Your investment depends on many factors, including laundromat size and the amount financed. The average up-front investment ranges from $100,000-$300,000. Huebsch Financial helps you achieve your laundromat dreams. They finance up to 70% of the total project cost, with a 30% investment requirement.
- Q:
Should I build a new store or buy an existing one?
A:Both business investment models have proven successful, and each provides its own unique advantages. Your Huebsch representative will present you with the pros and cons of each and help you find the right option for you.
- Q:
How much space do I need?
A:Laundromats range in size anywhere between 1,000 and 5,000 sq. ft. The average facility is 2,170 sq. ft.
- Q:
How many machines will I need?
A:The number of machines you need largely depends on the size of your store. Your Huebsch representative will help you determine the right number of machines and equipment mix, but in general you’ll want to have a combination of between 40 and 100 washers and dryers.
Location Is Everything!
When searching for your laundromat location, here are some top things to consider to help your business be more successful:
Choose the right neighborhood:
-
35% of the residents rent vs. own
-
Average household size is 2.3 and above
-
Average household income level below $35k per year
Choose the right storefront:
-
High-traffic laundromats typically have storefronts with:
-
High visibility
-
Plenty of dedicated parking
-
Located near grocery stores, convenience stores and auto parts stores
The Perfect Partner
You may not know much about laundromat investments, but with Cozzetto Commercial you don’t have to. We have a direct relationship with Alliance Laundry Systems. They will provide you with all the tools and services you’ll ever need — and guide you through every step of the design process. Their experienced team will create a customized plan that positions you for success.
Location Analysis And Site Selection
Our commercial real estate services offer full-scale support from a team of dedicated laundry experts who will guide you through location and equipment selection and beyond.
Equipment Selection
We’ll help you choose the best equipment for your needs––from machines and controls to folding tables, change machines and more.
Facility Design
Huebsch will also work with you and your contractor to design your laundromat for an optimal experience for your customers and maximum profitability for you.
Reliable Equipment. Advanced Controls.
Our world-class equipment is built to last longer and outperform the competition. Working together with our cloud-based technologies, and intuitive apps, Huebsch Laundry Design Service elevates the laundry experience, while making it easier and more profitable to run your business.
Have Questions?
We invite you to contact us if you have any questions regarding our business or our extensive selection of commercial laundry machines.
Where to Find Us
Cozzetto Commercial Laundry Equipment has a history of superior service across Spokane, Seattle, Vancouver, Portland, Missoula, Yakima, Coeur d’Alene, Richland, and many other inland Northwestern communities.
