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This Laundromat is a “State of the Art” Absentee-Owner model franchise, that is shows a net cash flow between $135,294 and $197,538, depending on financing. This Net number is out of yearly revenues of only $377,736. This laundromat operates with 2 - 4 P/T employees and an asking price of less than $150,000 liquid for a single unit, with in-house financing.
As a stand-alone store, this franchise model operates in a small 2000 – 4000 square foot space, keeping overhead low and profits extremely high. There is also a limited number of Area Representative (AR) models of Twenty (20) Licenses for $225,000 liquid, as a Passive Income option.
Equipment financing, discount equipment purchase agreements, full demographic analysis, full site selection and lease negotiation assistance, and full design assistance is all standard and financing for up to 70% of the total cost of the build-out for qualified buyers. Total Cost without financing is typically $350k for a single 3000 s/f unit.
Studies have shown an incredible potential due to factors such as a highly-fragmented competition, the number apartment complexes that no longer offer laundry service, the number of Colleges and Universities throughout the major metro areas, and the incredibly strong Eco-friendly stance this country now has overall.
The Marketing & Development team is continually reviewing the competition, and socio-economic profiles available for each metro area in the U.S. This information allows the company to choose the best possible location for the unit(s). Working with comprehensive analytics for that chosen location, they will determine the exact square footage necessary to hold the best mix of equipment for that site’s clientele. By following this process, the unit gains the maximum amount of profit, off the least amount of overhead. I have attached a Financials’ sheet to this email for you to look over.
This is the first nationally branded, high-tech, eco-friendly laundromat in America. Before now, the Laundromat Industry had no brand. There was no standard for business sophistication to help prevent massive turn over in this industry, due to the inexperience of the “Mom & Pop” owners. For full details of this model, please read the attached brochure.
Best Construction, Operational Practices & Green Initiatives including:
Financial requirements for the purchase of this Franchise are $225,000 liquid and a net worth of $400,000. Liquid Investment for a single unit is a minimum of $132,125. This number includes $49,950 franchise fee and the build-out of one store; financing 70% of the total cost. Franchise fee for a two-pack is $89,900 (second franchise fee: $39,900) and $109,805 for a three-pack (third franchise fee and subsequent unit fees: $19,500).
The Area Representative (AR) model has a minimum of 20-unit licenses for a population territory of approximately 5 Million @ 4.5¢ per person. Area Representative’s receive 50% of all collected franchise fees at signing ($24,950/unit) and 50% of the royalty fee on each unit’s yearly gross revenue. AR’s also receive one-unit license without a franchise fee. Franchise fee for the AR is $225,000. (It is recommended that an AR open a laundromat but it is not required)
Liquid Investment for an AR and a single unit build-out is approximately $308,000, with in-house financing up to 70% of the build out through Electrolux.
Their training and support program consists of 3 days of training at company location and 2 days of training at franchisee location. Mentoring begins following the training and is continuous for the life of the business.
The required royalty fee for each unit is 7% and is taken off the use of the washers and dryers only. However, with the royalty free recommended ancillary revenue streams available to the franchisee such as, Wash, Dry Fold (WDF), ATM, vending machines, etc., the net royalty drops to 5.5%.
This business is only offering 36 Area Representative models and a maximum 700 total units for the whole of the US.
Eco-Green Laundry - Semi Absentee Ownership
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