What makes a healthy Laundromat business?
Net margins 15–25% are achievable. Wages are minimal (5–12%) because most laundromats are unattended or have a part-time attendant.
Utilities (water, gas, electricity) typically run 18–28% of revenue — the biggest single cost. Energy-efficient machines materially improve margins.
Equipment (commercial washers and dryers) costs $4–10k per machine and lasts 10–15 years. Always inspect with a commercial laundry technician.
Typical asking-price multiple
2× – 3.5× SDE (Seller's Discretionary Earnings). Laundromats trade at higher multiples than general retail due to low workload.
Red flags
- • Equipment > 12 years old
- • Lease < 5 years (machines too expensive to relocate)
- • Rising utilities not yet reflected in financials
- • Coin-only operation in a card/digital-first market
Green flags
- • Card/app payment systems installed
- • Energy-efficient machines under 7 years
- • Long lease 10+ years with options
- • Add-on revenue: drop-off service, vending, ironing
Key due-diligence questions
- 1. What's the equipment age, brand and replacement schedule?
- 2. What are the actual utility costs for 24 months?
- 3. What's the lease term, rent reviews and end-of-lease make-good?
- 4. Is the business attended or unattended?