Detailed Estimates of Speed Queen Laundromat Franchise Costs Based on Item 7 (Estimated Initial Investment) of Speed Queen Laundromat’s 2019 Franchise Disclosure Document
1. Franchise Fee: $30,000
- The initial franchise fee is $30,000; however, Speed Queen will apply $10,000 of the Development Fee paid under an Area Development Agreement toward the initial franchise fee for each Speed Queen laundromat.
2. Leasehold Improvements: $192,000 to $526,000
- The total estimated initial investment does not include real estate.
- Speed Queen laundromats are typically located in strip centers and freestanding locations.
- The cost of purchasing or leasing and developing a site for a Speed Queen laundromat will vary considerably depending on such factors as location, size, and the local real estate market.
- You will need to purchase or lease a building of approximately 2,000 square feet (unattended Branded Business) to approximately 5,500 square feet (attended) and pay the cost of site work and/or leasehold improvements.
- Leases typically have an initial term of 10 years with a minimum of two 5-year options and include base rent, triple net, and landlord’s contribution for tenant improvements ranging from $0 to $35 per square foot.
- In addition, there will be local state/county/city costs which may include fees for water and gas meters, tap fees, impact fees, etc.
3. Equipment: $164,000 to $500,000
- Speed Queen estimates the cost of purchasing equipment for your Speed Queen laundromat, including bases, will range from approximately $164,000 to approximately $500,000.
4. Technology Package: $20,000 to $27,000
- Technology package is a comprehensive proprietary package that includes value transfer machines, bill changers, iPads, and a fully-integrated EPOS system.
- This item covers the costs of Speed Queen’s proprietary EPOS System plus all training and support. The EPOS system is a fully-integrated proprietary electronic point-of-sale system that includes all supporting hardware.
5. Fixtures: $12,000 to $44,000
6. Furniture: $4,000 to $21,000
- Designated fixtures and furniture include bulkheads, troughs, lounge furniture, laundry carts, safe, and millwork.
7. Security and AV: $12,000 to $14,000
8. Supplies and Inventory: $3,000 to $8,000
- Speed Queen estimates the cost of the opening detergent, laundry bags, office supplies, cleaning supplies, and uniforms orders to range from $3,000 to $8,000.
9. Design and Permit: $21,000 to $45,000
10. Signage: $12,000 to $20,000
11. Additional Funds for 3 Months: $20,000 to $40,000
- This estimate includes working capital for 3 months and includes general operating expenses, such as lease payments, inventory, payroll expenses, facility expenses, insurance, pest control, security, repairs and maintenance, and complimentary sales and other costs.
- These figures are estimates based upon Speed Queen’s experience in opening and operating company-owned laundromats and Speed Queen cannot assure you that you will not have additional expenses in starting your Speed Queen laundromat.
12. Total: $490,000 to $1,275,000
- These figures are only estimates and your costs may be higher or lower, depending on your particular circumstances.
- These estimates do not include real estate and related costs, and landlord allowances.
- Speed Queen Laundry Franchise LLC relied on its experience of company-owned Speed Queen laundromats to compile these estimates.
- In geographical areas where Speed Queen has no Speed Queen laundromats or have no significant experience regarding opening of company-owned laundromats, the foregoing estimated initial investment may be less reliable and you may have to make a greater investment, depending on the circumstances.
- If you purchase an existing laundromat, you may have to make a smaller or greater investment, depending on the circumstances, than the estimated initial investment shown above.