Franchising provides entrepreneurs with the opportunity to generate profit and maximize return on investment without having to implement a new business model. As a franchisee, you can leverage an existing business structure and benefit from an established brand with a loyal customer base.
Due to their recession-resistant qualities and simple management process, laundromats are particularly interesting for individuals looking for a franchise opportunity. Below is a look at some of the top laundromat franchise options.
Why Should You Start a Laundromat Business?
There are many reasons why you should consider starting your own laundromat franchise. Here is a brief overview:
- A decent average return on investment: Laundry businesses have low labor costs, and if run properly, they can generate an average return on investment of 20% to 35%.
- A high success rate: Unlike many other sectors, laundry businesses have a high success rate. This is mainly due to their low operating costs, straightforward management, and high client retention rate.
- A recession-proof business: Regardless of the economy's health, the demand for laundry services will remain consistent. This ensures reliable income even amidst an uncertain economic environment.
The Best Laundromat Franchise Opportunities
As an aspiring laundromat owner, there are several factors that you should consider before choosing a franchise. Ideally, you should narrow your options down to franchises with low fees, comprehensive business support, and reasonable liquid cash requirements. Here are some great laundromat franchise opportunities that offer these benefits:
Maytag Commercial Laundry
The first option on the list is the Maytag commercial laundry franchise. Founded in 1893, this is one of the oldest brands in the laundry industry. Their laundry equipment consists of high-end washers, and their facilities are some of the best in the laundry business. More importantly, the Maytag brand is one of the most established names in the industry, which gives new business owners access to a ready-made customer base.
Getting started with Maytag is a fairly simple process. The franchisor will walk you through all the steps involved in getting your business up and running. This includes helping you with your store design and making sure the equipment is operational.
Another reason to consider starting a Maytag franchise is the company's financing solutions to its clients. Through its partnership with Eastern Funding, Maytag helps business owners secure the capital required to cover start-up costs. Some other extra perks include VIP and exterior signage discount, Coin Laundry Association membership, and marketing support.
Upfront cash requirement: $75,000
Franchising fees: None
The Eco Laundry Company
As you can guess from the name, Eco Laundry prioritizes environmental consciousness and places efficient and clean washing at the center of its business philosophy. Eco Laundry uses energy-efficient washing machines and relies on wind energy to run their facilities as part of their environmentally-friendly approach. To reduce waste, the company also uses recyclable bags made from salvaged materials.
The Eco Laundry Company has relatively lax qualification requirements. In fact, prospective laundromat owners are not required to have previous business experience - as long as the candidate showcases a commitment to green business practices, securing franchise qualification should be a formality. Keep in mind that the franchise agreement term is seven years, with a renewal of five years over three subsequent terms.
Unlike Maytag, the Eco Laundry Company does not provide financing solutions to its franchisees. However, you can expect to receive professional guidance as well as references to reliable lending resources.
Upfront cash requirement: $229,700 to $350,000.
Franchising fees: $30,000 initial fee + royalties at a rate of 6% of net sales.
Speed Queen has over a century of experience in the laundry industry. Over the decades, the company has built a reputation for incorporating the latest technologies and best practices to improve the way they service their customers. Besides using some of the best laundry machines in the industry, Speed Queen enhances the customer experience by equipping its facilities with lounge areas, sleek designs, and Wifi access, among many other features.
To help franchisees start their small business, Speed Queen provides full assistance throughout the entire process, from developing a business plan to executing short and long-term goals.
Speed Queen franchise owners benefit from a myriad of tools that help them efficiently run their business. This includes advanced reporting and analytics, securing payment processing, a streamlined management platform, and centralized refunds. As a franchisee, you also can accept multiple payment options and boost customer loyalty by offering special rewards.
Upfront cash requirement: $300,000.
Franchising fees: $30,000 initial fee + royalties at a rate of 4% of net sales.
This is a relative newcomer to the laundry business. Nonetheless, WaveMax has already made waves in the industry by offering great franchising opportunities to entrepreneurs of all stripes. To set its laundromats apart from the competition, WaveMax has emphasized enhancing its facilities with high-quality washers as well as complementary features and amenities such as Wifi access to customers.
Unlike many franchisors, WaveMax Laundry helps business owners find and analyze the ideal location for their business. As part of this process, the owner is provided with in-depth insights regarding the location's foot traffic, average income, and long-term potential. WaveMax will also help the franchisee with the store's design to ensure it aligns with the company's standards.
Another reason you should consider WaveMax as a franchise option is the financing solutions they offer to their clients. Thanks to a partnership with Electrolux, the company covers up to 75% of start-up costs. Owners can also benefit from preferred pricing on all washers and dryers.
Upfront cash requirement: $209,955 (but could be higher depending on the size and location of the store).
Franchising fees: $49,950 initial fee + royalties at a rate of 6% of net sales.
Zips Dry Cleaners
Zips Dry Cleaners started its franchising operation back in 2006. While initially limited to the Baltimore-Washington area, the company has since expanded its reach to over 50 markets across the country. As one of the few franchisors committed to reducing environmental impact, Zips Dry Cleaners uses biodegradable plastic bags and operates a recycling program in all its locations.
To help franchisees get started on the right foot, Zips provides extensive training to them and helps them gain insight into customer service practices. In addition to this initial training, the company provides ongoing support to franchisees and sets up quarterly meetings with the home office team to ensure everything is running smoothly. Some of the points that these meetings intend to address include the long-term trajectory of the business, current company initiatives, and the development of innovations and technologies.
Another thing worth highlighting is the marketing support that the company offers to business owners. As a franchisee, you can expect full assistance and guidance in developing advertising strategies and campaigns across print, digital, and outdoor marketing mediums.
Upfront cash requirement: $745,700
Franchising fees: $30,000 initial fee + royalties at a rate of 6% of net sales.
Let Skynova Help Manage Your Business Finances
While running a laundromat franchise is relatively simple, you still need to stay on top of your business finances to ensure everything is in order. Skynova helps you achieve this by putting several software solutions at your disposal.
The Skynova Accounting Software is an all-in-one accounting solution that allows you to track expenses and income on the same platform, keep track of sales tax and payments, and store all your receipts.
Notice to the Reader
The content within this article is meant to be used as general guidelines and may not apply to your specific situation. Make sure to get the opinion of a franchising consultant to get the necessary professional guidance.