Laundromat Resource › Forums › Laundromats › Valuation for buying an unprofitable laundromat › Reply To: Valuation for buying an unprofitable laundromat
Sounds like it’s worth $0.
To be clear they have said to you they have no intention of renewing the lease? If so you don’t need to really have a conversation with them. By the sounds of it the location needs a retool. You can do that with new equipment or “newer” used equipment. I would get the demographics for the location and concentrate on 1 mile radius. 90% of your biz will come from that 1 mile. You want at least 40% renters and anything over 50% is great. You also want a good density of population. Also what’s the competition like? Are there 3-4 store in that mile radius? Or zero? Laundromats are capital intensive businesses but you can get creative to make it work. Another thought is The current owners most likely will have to return the space to it previous condition at move out..which will be a large expense for them. You could also just offer to take over the lease for them contingent on the landlord giving you a new favorable lease in exchange for you rehabbing space and getting it back to 100%. My gut says they want to walk and are trying to get a last second money grab from you..don’t be that person..
