If you’re thinking about how to own a laundromat, there are plenty of options. You can start your own laundromat, buy an existing laundromat, or invest in one of the best laundromat franchises.

We’ll describe the different laundromat franchises you can buy, review 12 different suggestions, and explain why many of them aren’t actually franchises. We’ll also analyze a case study about a successful laundromat owner.

Finally, we’ll provide you with a list of additional resources for laundry business owners.

Keep reading straight through or click on any of the links below to jump to the section that interests you.

Let’s start by taking a look at how much laundromats make in revenue and profit.

Learn About the Laundry Industry

There are many different reasons you might be interested in buying a laundromat franchise. While you’re learning how to buy a laundromat franchise business, you should also be researching the industry at a whole.

Understanding the market will help you make informed decisions at this early stage.

How much do laundromats make?

According to the UpFlip Academy business ideas database, the laundromat industry generates $6.6 billion annually with the average laundromat making $330K per year. The laundry industry is expected to keep growing at a rate of 0.2% annually.

Are laundromats profitable?

Yes. The laundry business can be highly profitable, with an average profit margin of 22.2%. Some of the most successful laundry businesses have profit margins that can approach 50%.

In addition, this lucrative industry provides laundromat owners with plenty of physical assets. You can leverage your existing equipment and assets to get better financing options and expand into multiple locations.

This approach allows you to build your small business faster than in other industries.

Laundromat Case Study: Dave Menz

Dave Menz bought an existing laundromat nearly 15 years ago and has since purchased three more. He’s found great success buying laundromats, improving them, and earning more cash flow through additional services.

Today, he’s known as the “Laundromat Millionaire” because he’s built a net worth of over $3.8 million. Check out our interview with Dave below:

Dave now earns over $1.8 million annually. Besides operating his four laundromats, he also offers comprehensive training programs for current or prospective laundromat owners.

	You Can Build Your Own $1.8M Laundromat Business
	If you’re not sold on franchises, skip the franchise fees and learn directly from Dave, who turned a failing laundromat into a cash machine. Dave’s step-by-step blueprint gives you all the tools you need to start and run a successful laundromat on your terms. With UpFlip Academy, you’ll get insider tips on evaluating laundromat opportunities, managing day-to-day operations, and creating systems that practically run your business for you.
	Join the UpFlip Academy!

What are the best laundromat franchises?

The top laundromat franchises based on income and profit margins are:

• ZIPS Dry Cleaners
• Speed Queen Laundry
• LaundroLab
• WaveMAX Laundry
• Martinizing Cleaners

If you want to learn more about how we choose franchises, check out our page on analyzing franchises.

#1. ZIPS Dry Cleaners

ZIPS Dry Cleaners offers dry cleaning with pickup and delivery services. This includes uniforms and linens. They market their unique value proposition with the slogan “In by 9, out by 5.”

• Initial franchise fee: $37.5K
• Initial investment: $739.7K to $1.18M
• Royalties and fees: 6% + $425 monthly

The ZIPS business model is a bit complicated due to having two types of franchises: processing centers and drop-off centers. You need to have a processing center for your laundry services, but after you start the first location in a city, you can save money by adding more drop-off centers.

Check out this video by ZIPS to learn more:

ZIPS Dry Cleaners franchises make $1,019,266 per year, the highest median revenue of all laundromat franchises. However, they have the lowest profit margins at a rate of approximately 26.5%. That means business owners expect their stores to bring in around $270K in profit.

#2. Speed Queen Laundry

Speed Queen is considered a leader in the laundromat industry due to its high revenues and margins. When you purchase a Speed Queen franchise, your laundromat will get to use the Speed Queen logo, app, and rewards.

• Initial franchise fee: $576K to $992.5K
• Initial investment: $1.16M to $1.94M
• Royalties and fees: 5.80%

As a Speed Queen laundromat franchise owner, you can offer the following laundry services:

• Self-service laundry
• Commercial accounts
• Over-the-counter retail sales
• Pickup and delivery
• Wash, dry, and fold service

The average Speed Queen laundromat makes $830,783 in annual revenue with approximately 41.2% gross profits or 32.1% after royalties. That means you can expect to make about $266,515 annually from owning a Speed Queen Laundry.

#3. LaundroLab

LaundroLab offers self-service, drop-off, pickup, delivery, and commercial laundry services.

• Initial franchise fee: $68K to $137K
• Initial investment: $1.18M to $1.78M
• Royalties and fees: $1,300 monthly or 7% of revenue + $800 monthly, whichever is greater

This laundromat franchise business model earns an average of $690,743 per location with a 26.9% profit margin. That means a laundry business owner can expect to take home approximately $185,534 annually.

#4. WaveMAX Laundry

WaveMAX Laundry is the most profitable of all laundromat franchise opportunities on this list. It has a 39.6% profit margin after expenses, royalties, and franchise fees.

They focus on being efficient with high levels of amenities. WaveMAX helps you find a low-cost location, get high-efficiency equipment, and maximize your returns.

• Initial franchise fee: $50K to $54.9K
• Initial investment: $351.5K to $1.5M
• Royalties and fees: 7%+ $395 to $715 monthly + $2.5K per year + 4% mobile with a minimum monthly payment of $300

There are two franchise models: standard or standard plus mobile. For the second model, you’ll spend an extra $20K to $30K upfront in addition to the ongoing costs for the mobile upgrade. However, with standard plus mobile, you’ll add another revenue stream to your WaveMAX laundry business.

Check out the explainer video about owning a WaveMAX Laundry franchise:

When you look at WaveMAX reviews, customers rate locations between 4.5 and 5 stars. Employee reviews for WaveMAX Laundry vary based on the location. 

#5. Martinizing Cleaners

Martinizing Cleaners specialize in dry cleaning services. Their franchise opportunities feature the most varied options in the laundromat industry.

• Initial franchise fee: $33.8K to $412.5K
• Initial investment: $37.5K to $743.6K
• Royalties and fees: 9%+ $1K monthly + $2.5K per year

They offer three levels of franchises:

1. Plant: Every city needs to have at least one plant. These are the retail locations where the dry cleaning is actually performed.
2. Satellite: A satellite location is a pickup and drop-off retail location that delivers clothing to the plant to be dry-cleaned.
3. Pickup and delivery: These franchises focus on pickup and delivery clientele. They pick up laundry from clients, deliver it to the plant, and return it to the client once the laundry is done.

The median plant makes $453,320 annually, while the median revenue for satellites is $301,240. The financial disclosure document (FDD) doesn’t make it easy to establish the profitability of the pickup and delivery franchises.

Eight locations have franchisees who own plants and satellite stores. These locations have a median annual revenue of $1,463,041.

Unverified Laundromat Franchise Opportunities

Other organizations recommend the following franchise opportunities, but at the time of writing, we haven’t been able to review their franchise disclosure documents to verify that they meet our criteria.

These laundromat businesses are listed by the total initial investment since we haven’t independently verified their revenue and profit margins.

#6. Maytag

Many websites describe a Maytag laundromat franchise, but Maytag doesn’t offer franchises. They sell equipment and have a Maytag commercial laundry page that you may want to review when making decisions about equipment.

Learn more about Maytag commercial laundry.

#7. The Eco Laundry Company

The Eco Laundry Company markets itself as an environmentally friendly laundromat.

• Initial franchise fee: $30K 
• Initial investment: $229.7K to $350K
• Royalties and fees: 9% (other expenses unknown)
• Source: The Eco Laundry Company FAQ

The Eco Laundry Company uses the following strategies to meet this objective:

1. Use recycled materials for the store buildout.
2. Support reforestation to offset their carbon footprint.
3. Operate their facilities with 100% wind power.
4. Use energy-efficient machines. 

Their site doesn’t specifically mention water usage, but I hope that’s part of their strategy. You can learn more about The Eco Laundry Company on their website or by watching the video below:

#8. SuperSuds

Some competitors list SuperSuds as a laundromat franchise, but I can’t confirm that they actually offer franchises. SuperSuds is a laundromat chain with over 20 locations.

You can try reaching out to them via their website.

#9. Zoom Express Laundry

You can get a Zoom Express Laundry center franchise, but their website doesn’t provide the typical information you’d expect for a laundry franchise. There’s no clear information about franchise fees or answers to frequently asked questions about laundromat franchise investing.

An older version of their financial disclosure document was available on third-party sites, but it was expired. I view that as a risk when looking for a successful franchise laundromat. However, they do have a form on their website to request additional laundromat franchise information.

Learn more about Zoom Express Laundry.

#10. Statewide Laundry

Statewide Laundry is a distributor of laundry equipment. Their website lists some laundromats. Although it specifically states that Statewide Laundry assists investors, nothing on their website suggests that they offer laundromat franchises.

Learn more about Statewide Laundry.

#11. Laundrylux

Laundrylux is the laundry segment of Electrolux. They will help you create a business plan, obtain financing solutions, and secure laundry equipment. However, they are a manufacturer and distributor, not a laundromat franchise.

Laundrylux claims that starting a laundromat business takes less than 90 days with their services, so it might be worth checking out.

Learn more about Laundrylux.

#12. Express Laundry Center

Once again, Express Laundry Center is a manufacturer that offers an alternative to a laundry franchise. You can purchase laundry machines through the company and have them assist you with building out your business venture.

Learn more about Express Laundry Center from Girbau North America.

Reasons to Buy a Laundromat Franchise

Every laundromat owner has their own business philosophy and personal reasons for entering the industry. Let’s take a look at some of the main advantages of buying a franchise instead of starting a laundromat business on your own.

Proven Business Model

Buying a laundromat franchise means you’re using a proven business model. You won’t have to figure out how to build a loyal customer base on your own.

With a franchise, you’re buying into an established brand that performs thorough market research, improves their business plan, and provides marketing support.

Laundry Services

Opening a laundromat provides numerous revenue streams, including:

1. Self-service laundry
2. Wash and fold services
3. Vending machines
4. Delivery and pickup services
5. Retail sales of laundry products
6. Commercial laundry services

Learn more about how to open a laundromat.

Low Staffing Needs

Coin-operated machines don’t require employees at all, but you’ll enhance customer convenience by taking the time to hire. Realistically, a laundromat that is open 12 hours per day only needs three employees.

Meanwhile, a 24/7 laundromat can operate with less than five employees. People with remote jobs could even run the business while working their other job.

Year-Round Demand

It’s not like people stop wearing clothes during certain parts of the year. They still have to wash laundry regularly during all seasons, so you won’t suffer from the seasonal fluctuations many businesses experience.

That makes money management much easier.

Low Failure Rate

Laundromats have a low failure rate because they’re a necessary service. Franchises typically tend to have an 80% success rate, but laundromat franchises may have a success rate of up to 95%.

Both of these figures are far better than the 80% of new small businesses that fail.

Work-Life Flexibility

Laundromats provide a lot of freedom for business owners. You can hire employees and come in a couple of days per week to collect money, check machines, and order inventory. Alternatively, you can run it yourself and save on wages.

You can also build a multi-unit franchise empire to help you increase your cash flow and profits even faster.

How to Buy a Laundromat Franchise

Buying a laundromat franchise can take three to nine months. The process of starting operations for a laundromat franchise includes:

1. Research and select a franchise.
2. Review the franchise disclosure document.
3. Secure financing.
4. Sign the franchise agreement.
5. Find and secure a location.
6. Obtain licenses and permits.
7. Purchase laundry machines and other equipment.
8. Hire and train employees.
9. Spread the word about your laundromat.

Let’s discuss how to start a laundromat business as a franchisee.

Step #1. Research and Select a Franchise

First, you’ll want to research the different laundromat franchises. The first half of this blog discusses many of the options when starting a laundromat.

You’ll want to consider details such as brand reputation, initial costs, support, and franchisee reviews. Once you’ve narrowed your options, contact the franchisor to request their franchise disclosure document.

Step #2. Review Franchise Disclosure Document

The FDD provides detailed information on the franchisor, including business requirements, fees, and franchisee responsibilities. You should read the document carefully and consult with a legal representative.

These documents are typically 150 to 300 pages long and broken into 23 standard sections, plus additional information. Assuming there are no red flags, you’ll be ready to proceed with the next step.

Step #3. Secure Financing

You’ll want to calculate the cost to start a laundromat franchise. Typically, a reasonable laundromat startup cost is between $350K and $2M, but depending on your location and the franchise requirements, it could be outside this range.

Explore financing options such as:

• Small business loans: Banks and other lenders offer startup loans and SBA loans.
• Franchise financing: Some loans are specifically tailored for franchise buyers or people who want to buy a business.
• Private investors: You can seek partners or equity investors to avoid loans.
• Seller financing: Most business purchases are at least partially financed by the seller. Most franchisors don’t offer this option, but it’s a great option if you can find one that does.

Step #4. Sign the Franchise Agreement

Once you’ve secured enough for the initial start-up costs, you’ll need to sign the franchise agreement and pay the initial fees. This document outlines the franchisor’s and franchisee’s rights and responsibilities in a legally binding contract.

Step #5. Find and Secure a Location

Next, you’ll want to find a location for your new laundromat franchise. Most franchisors will help you establish a good location based on population density, proximity to competition, and ease of access.

For a secure location, you should expect the cost to open a laundromat to be $20K to $50K. Dave told us:

Step #6. Get Licenses and Permits

You’ll need to register your laundromat as a business. I recommend starting a limited liability company to reduce your personal risk.

From there, obtain all necessary health and safety permits, business licenses, and environmental permits. Expect to spend at least $1K to $2K.

Step #7. Get Laundry Machines and Other Equipment

When you buy a laundromat franchise for sale, the franchisor will normally provide specifications and requirements for setting up the location. You’ll need to renovate the space and install laundry equipment.

Depending on the size and condition of the space, modern facilities will cost between $75K and $500K.

Step #8. Hire and Train Employees

You’ll probably want at least one employee to run your laundromat. You’ll need to hire and train them in customer service, machine maintenance, and machine operations.

You’ll also need to have workers’ compensation, unemployment insurance, and a payroll provider. Expect payroll costs of up to $10K for the first three months to cover all the insurance, payroll software, and wages.

The costs will vary based on the number of employees, how much you pay them, and any optional benefits you wish to offer.

Step #9. Spread the Word About Your Laundromat

To promote your grand opening, follow the franchisor’s marketing strategies. The first three months of marketing may cost between $5K and $6.7K. The costs you should expect to have will be listed in item 7 of the financial disclosure document.

The table below contains details from the WaveMAX FDD:

Please note that only a portion of the additional funds in the table above go to marketing, but I think it’s important to see an actual example of what you can expect.

Additional Laundromat Resources

At UpFlip, we offer a wide range of information about laundromats. We suggest checking out the following resources:

• UpFlip Academy: Join our membership program to get access to 66 laundromat lessons and eight downloadable resources.
• UpFlip YouTube: We have five interviews with laundromat owners on our laundromat playlist.
• Laundromat blogs: Read other blogs about laundromats.

Ready to start your own laundromat franchise?

Market demand for laundry services is consistent throughout the year. Provide a great customer experience and you’ll get plenty of repeat business.

By now, you should have a strong understanding of how to open a laundromat. We discussed the greater laundromat industry and highlighted the five best laundromat franchises based on their average franchise profit. We also reviewed seven other franchises or vendors that help people laundromat owners.

Which laundromat franchise interests you? What do you find appealing about it? Let us know in the comments.