Potential Purchase of Laundromat

[ROBBIE RAWLS]

I am hoping to get advice here on a potential purchase of a laundromat in large city. I don’t know the age of the machines but some seem really old and others appear to be newer. The machines are:
20 lbs: 10
35 lbs: 8
40 lbs: 8
50 lbs: 2
10 Maytag top load
single stack: 14
double stack: 7
2700 sq ft rental space for $2100 month, gas $200, water $600, electric $450
Monthly Income: Coin $4000, wash/fold $700, soaps/etc $700, alterations $700, Contract alterations $4000

Asking price is $40,000

[Juan Vazquez]

Hi Robbie,

You didn’t state a location but the mix and size vs the asking price doesn’t seem that bad. Of course it also depends on other factors such as your availability, plan for the business format (i.e. attended, unattended, partially attended, etc), and how much time, effort, & $ you are planning to put into it.

Some machine brands are more reliable and / or easier to service than others.

[jordan loreto]

If there are some machines out of order then it seems like 40K is high. The lease price is fair and if you can get at least 10 years on it then great. You could run it as is then when you have the lease consider a retool. How is the location?

[Jason Dodge]

This is limited info Robbie to give advice on. You need a full P&L to see if the business is currently turning a profit. I would say it isn’t based on the asking price. You may be looking at an asset only purchase. Based on your description the assets aren’t worth much so your mostly buying infrastructure and a lease. If the lease is strong, 10 years with two 5 year options would be ideal, and the bones are good you could go in with a low offer and see what happens. You need to have a local distributor walk threw with you and look at the bones of the store and get numbers on a retool.

[Jeff]

That seems like a bargain. Did you end up buying it?

[wade Mitchell]

Hey all, looking for some guidance here. I have an opportunity to purchase a turn key store in Tennessee. 1400 square foot of space. 5 yr old equipment – 20 washer/ 15 dryers.

Annual revenue is 225k/ netting $160k. Drop off service has just been launched and I expect it to take off pretty quickly.

Asking price is 700k. Again, nothing for me to do but get the keys – no build out or repairs necessary at all.

There is a current lease in place of 3k per month.

Does this seem to be a good deal?

[David Scher]

Wade, these numbers don’t make sense. Net of lease revenue is $189k, yet they’re only spending an additional $29k (to get you to 160) on employees, insurance, repair, etc.?

[CJ]

Hello All –

I am a resident of NYC and looking to get into the laundry business (yes, it is a saturated market here 🙂 ) . I would love a broker recommendation for those of you in the know, or a contact to discuss broker recommendations!

Best,
CJ

[Author]

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