Laundromat Resource Forums Laundromats Potential Purchase of Laundromat

6 voices
5 replies
  • Author
    Posts
    • #13791
      ROBBIE RAWLS
      Participant

      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

    • #14386
      Juan Vazquez
      Participant

      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.

    • #14625
      Jason Dodge
      Participant

      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.

    • #15101
      Jeff
      Participant

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

    • #16579
      wade Mitchell
      Participant

      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?

    • #16795
      David Scher
      Participant

      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.?

You must be logged in to reply to this topic.

Laundromat Resource Forums Laundromats Potential Purchase of Laundromat