The obvious question to many people thinking about entering the Coin Laundry Industry is whether it is better to build a new Laundromat vs Buying a used Laundromat. There are advantages to both approaches but the risk is much higher when building a new one from scratch, especially if you are not experienced in this industry. Other options include renovated Laundromats which I highly advise people NOT to buy. Many brokers buy old Laundromats, renovate them, and then try to resell them at a much higher price by using "projected" increased revenue because of these renovations. But this is really no more than a scam. That's why I always advice new entrants to do their due diligence on the industry, it is sad to see people lose substantial amounts of money based on a Laundromat broker's greed.
With this said, the benefits of building a new Laundromat are many as well. Larry Larsen of Laundromat123 believes one can have a selection of the layout of the store, brand new equipment with warranties, higher income potential, better lease terms. If this is the option you would like to explore, you should contact at least 3 different Laundromat companies and have them do the following for you:
- Laundromat layout
- Market and competition review
- Education on how to run a on Laundromat
- Site analysis
- Demographic reports review
- Necessary Lease concession for Laundromats
- Financing by equipment vendors
- Contractor and Building Architech recommendations
- Construction oversight of project
- General Advice on building and running a new Laundromat
Always MAKE SURE you check brokers with the Better Business Bureau, ask for references, search online for comments on prospective brokers.
