Information on building a laundromat.
Guides, research, documents, and helpful hints.
Finding the right location
Starting Your Search
An investor can go a long way into finding the right area to put a laundromat. Before spending lots of money on an ESRI demographics report you can find potential locations using some free tools.
In Google Maps start off by looking for Wal-Marts. They are usually spot on with their location. Also see where Dollar Generals and Check Cashing locations are around.
Hopefully you are narrowing in on a few intersections by this time. Check for large apartment complexes near those target intersections.
In cities with significant density of population laundromats within one mile of each other can be viable; otherwise, stay away from competition.
Use Loopnet to see what retail spaces are for lease (or sale) in the areas you are searching.
On-site Evaluations
Visit the site. Ideally you would do this with your distributor. Check that the location is going to physically work for a laundromat.
Is there enough parking? You need ten parking spaces at minimum. They should be in front of the store. Customers need to carry a large basket and easily get into the store.
Does it have a nice store front with windows? Is it well lit?
Are there awkward poles inside that would hurt the layout?
Next, focus on utilities. Very, very few sites come ready for the electrical, gas, and water needs of a laundromat. It is one of the most significant costs you’ll face in construction. Adding and upsizing utilities can run between $35K - $50K.
A laundromat needs at minimum a 300-amp electrical service, the ability to upgrade the gas line to at least 1/2” pressurized, a minimum 1 1/2” water line, and a sewer run with an added sump pump pit that can handle draining. The shorter the distance to the sewer the less concrete you have to cut and pipe you have to upsize.
Financing
Getting financially approved is the largest hurdle for any laundromat project. You should begin the process of getting financially approved as early as possible.
A typical laundromat project will have between $350K - $750K in equipment. In addition, you will need between $100 - $150K in construction costs. Construction costs are not financeable; you will need to have this cash to invest in the project.
Here are some possible funding sources include SBA, Eastern Funding, manufacturing financing, or a local bank.
Each of these will request many of the same documents, such as past tax returns, current bank statements, and credit scores. A good investor organized and ready to provide these documents quickly