New and Unique Offer with opinions needed!

[Jordan Berry]

Hello All,

A great resource you all have here! I would love to get opinions on a unique offer I’ve been provided. I currently own a Vacation Rental Services Company and our clients create quite a bit of laundry. We currently use a wash-n-fold service to handle this load for us. Recently, the owners of the laundromat we have handling our wash-n-fold services presented an offer to us to take over the laundromat. This laundromat currently has approximately 60 washers and dryers in about a 4,000 sqft leased facility. This location is only approximately 4-5 years old and is as nice and state-of-the-art as I’ve seen laundromats. The offer to us, due to some possible upcoming family reasons, was simply to take over payments on equipment and lease, with only providing a 10k payment upfront. No other compensation or asks are involved. Simply take over. I would love to know what some people here think about this offer, as I’ve always been the kind to feel if an offer was too good to be true, it usually is. I’ll provide a small taste of what was provided to us as numbers.

Van Payment $640
Payroll $6,000
Insurance $550
Equipment Loan $5,500 (pre covid purchase – Electrolux equipment approx 4-5 years old, Laundroworks card systems)
Gas/Electric $1,000
Internet/Tv $250
Misc $475
Lease $7,000 (water is included) Lease has 6 or 10 years left plus 2x 5-year options available.
8-10 Parking spaces are available in front with more available within the strip mall.
Located on a large main street in the city, the building and sign are easily seen by street traffic. However, the area has large commercial/industrial surroundings
Competition – 3 other laundromats I’d consider state-of-the-art nearby, each at least 1.25 miles away. No other laundromats are located within a 1-mile radius.

July Income:
Walk-in $12,500
WDF $13100

This laundromat is the cleanest I’ve come across, includes many TVs, and top-of-the-line new equipment, and doesn’t appear to need any modifications, equipment, or remodeling. Furnishings are all 4-5 years old and appear as if they were brand new. Owners do admit they have done little to no marketing as they have been stretched thin and admit prices could be a little higher and wash-n-fold clients could be increased. We do approximately $2,500 of WDF with them as their current client. It was expressed to us that this is one of their babies, and want it to go to people they trust and know and will take care of it.

Every podcast and youtube video that speaks of obtaining laundromats for free.. states that this kind of laundromat would never be available in this condition! What say you???

[Author]

Posts