BUILD NEW OR BUY AN EXISTING LAUNDROMAT
THIS CAN MAKE YOU THINK LONG AND HARD
buy an established Laundromat you have a track record of your customer base and you feel comfortable that people want to use your services at its current location. If you just maintain the current level of service you should maintain the current level of income. With an established business you may also get a below market rate lease, such as if the previous owner negotiated a very long term lease and did not accept an adjustment provision raising rent to the "market rate" at the time of the exercise of any option. An established Laundromat has a reputation and a provable history of need that is in demand; potential growth may also be possible. The biggest single advantage to people who elect to purchase an existing store is the concern that a new store may not perform to projections of income.
These are solid arguments for buying an established Laundromat, however the down side of an existing location is that you are purchasing older equipment that is less reliable, less energy efficient and more likely to suffer breakdowns. This will means higher monthly utility expenses, parts costs and repair labor expenses. If the store is an older design, it might not have all the features you would like to see in your business. Some owners believe that the extra space saved from the installation of newer stack dryers allows the owner to install play areas for customer's children, water vending machines, video games, lounge areas, sky lights and other features not usually found in existing sites.
Existing locations with a good track record of high income are sold at premium prices so the other side of the coin is that building a new store allows you to buy the latest design and energy efficient equipment at a discount price. It is important that you find a good location for your new Laundromat with a long-term lease. We suggest at least twenty year leases are negotiated including options available under the same terms and conditions as the original lease with only a cost of living adjustment provision. Avoid any lease that has "market rate" option because the balance of power is always in the hands of the landlord at the time of the exercise of these options.
Working with a professional in the Laundromat business will allow you to calculate the likely income that will be achieved with the building of a new store. You can build your own reputation for your Laundromat with passion, energy, ideas and management skills. The surrounding Laundromats may have owners that are tired or ineffective in their business operations, even though your major competitor remains the washers and dryers installed in the surrounding rental property and homes, it's always a good idea to look at any other Laundromats located within one mile of your new site. The inclusion of larger capacity washers and dryers in your new store will draw these customers away from these laundry rooms and into your profit column. Our experience in building over one hundred Laundromats allows us to handle any development problem you can encounter. So if you have a dream to build a brand new Laundromat with all the latest high quality equipment and include the latest design features and your own business growth ideas we can help you achieve your goal.
We can help you install a new Laundromat in a vacant space or renovate an existing Laundromat. We work with owners, investors and landlords looking for a reliable long-term tenant for their commercial space. Our experience allows us to assist with most development options with site lease negotiation, location analysis, store layout design, equipment recommendations and comprehensive help throughout the building process. The cost of these development services are normally purchased at an all-inclusive price including the profit on the equipment and professional services, although consulting services on individual items are also available. Our services, if you decide to build a new Laundromat instead of buying an existing one, include the following:
1. Owner education on Laundromats
2. Site selection analysis
3. Review of demographic reports
4. Lease review
5. Details of lease provisions
6. Lease negotiation with landlord
7. Review of competition
8. Design and layout services
9. New feature options review
10. Financing options
11. Architect recommendations
12. Engineering recommendations
13. Contractor recommendations
14. Construction biding assistance
15. Construction building oversight
16. Operations training
17. Grand opening advice