How to Invest in a Laundromat Franchise
Investing in a laundry business is a good choice as they are always in high demand with a high percentage of repeat customers with relatively low maintenance needs. As long as your facilities are clean and you offer stellar service with quality equipment and laundry parts from stores like Laundry Replacement Parts, there is a good chance of success.
When you purchase a laundry franchise, the startup and operational costs increase, but you get an established brand and guidance. It’s like purchasing from any other business franchise, but what makes laundry businesses different is that some franchisers are willing to loan the money necessary to begin the business. If you want to invest in a laundromat franchise yourself, read on as we share some things to consider, beyond purchasing alliance laundry parts or other important equipment.
- Getting Access to Capital
A great benefit behind laundromat franchises over starting your own business is the access to capital. Many franchisers offer in-house financing to franchisees. Moreover, these companies who are more familiar with their product and are experienced in selecting potentially successful franchisees offer flexible financing with lower interest rates compared to commercial banks at times.
- Franchise Costs
Coin-operated laundromats are sometimes said to be low-cost franchises. However, larger franchise companies require people to invest at least $100,000 to $200,000 in startup costs. Larger laundromat operations can require investments of at least a whopping $1 million!
Potential franchisees may also need to reach a minimum net worth set by the franchising company, but this figure will vary within the company itself.
- Support and Guidance
A significant benefit to buying a commercial laundry franchise is that you receive support and guidance all the way. Companies may offer store-design assistance, as well as signage and brand identity help. You will even receive a business and financial plan guidance tailored to specific needs.
- The Advantages of a Laundry Franchise
There are two major benefits a franchisee can reap, which are capital access and brand identity through the parent company’s finance department.
That said, having an independent operation with low startup costs and operating expenses is another promising alternative, provided that you also receive good brand identity and capital access.
Fortunately, you can find franchise companies that offer the best of both worlds. Under some companies, you can become an independent operator without franchise fees. You can also receive financing as needed to begin your business and invest in the brand’s laundry equipment.
For instance, if you purchase Speed Queen washers and dryers, you can brand your business as a Speed Queen Laundromat. This is a well-known brand that people will trust. Moreover, such companies can still provide signage and store design support to increase your success.
Another advantage is the higher survival rates for franchise operations compared to independently-operated businesses. That’s thanks to the branding and tailored business plan you receive from the company.
Wrapping It Up
Keep these things in mind as you purchase a laundromat franchise. Good luck!