If you are considering a Speed Queen Laundromat franchise, don’t get blindsided by these 19 important franchise fees (from the initial franchise fee, to the royalty fee, to 17 other fees found in Items 5 and 6 of Speed Queen Laundromat’s 2019 FDD).
1. Initial Franchise Fee: $30,000
- You must pay Speed Queen an initial franchise fee in a lump sum when you sign the Franchise Agreement. Speed Queen’s standard initial franchise fee currently is $30,000 for each Speed Queen laundromat.
- If you and Speed Queen cannot mutually agree upon a site within six months of signing the Franchise Agreement, the $30,000 initial franchise fee will be refunded.
2. Initial Area Development Fee: $10,000 for each Branded Business to be developed under the Area Development Agreement
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- You will receive a credit against the payment of the initial franchisee fee equal to the portion of the development fee allocable to each Branded Business.
3. Equipment: $164,000 to $500,000
- You must pay Speed Queen’s Ultimate Parent for the cost of the equipment required to open and operate your Branded Business. The cost of the equipment is $164,000 to $500,000.
4. Technology Package: $20,000 to $27,000
- You must pay Speed Queen for the cost of the technology package required to open and operate your Branded Business. The cost of the technology package is $20,000 to $27,000.
5. Royalty: 4% of Gross Revenue
- Due Date: Payable each month on the 15th, based upon the Gross Revenue for the preceding month.
- “Gross Revenue” means all revenue related to the Branded Business, except taxes and refunds.
- Paid by electronic funds transfer.
6. Marketing Fund Contribution: 1% of your Gross Revenue
- Due Date: Payable each month on the 15th, based upon the Gross Revenue for the preceding month.
- Due upon commencement of business.
- Subject to increase by Speed Queen of up to 3% of Gross Revenue.
- Paid by electronic funds transfer.
7. Technology Fee: 1% of Gross Revenue
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Every month we feature 6 standout franchises that could be the opportunity you've been looking for, each evaluated on disclosed financials and matched to the type of buyer most likely to succeed with it. Can't attend live on October 27 at 6PM EST? Register now and we'll send you the full recording the next day. Reserve your spot here.- Due Date: Payable each month on the 15th, based upon the Gross Revenue for the preceding month.
- Paid by electronic funds transfer.
8. Renewal Franchise: $10,000
- Due Date: Upon signing of renewal Franchise Agreement.
- When you acquire renewal franchise after initial term expires.
9. Transfer Fee: $5,000
- Due Date: Prior to transfer of the franchise.
- Speed Queen may also require that you reimburse it for costs it incurs during the review process of the transfer, including, but not limited to, attorneys’ fees.
- Paid only if you transfer the Area Development Agreement or the Franchise Agreement or sell your rights in the franchise to a new franchisee.
10. Relocation Fee: $5,000
- Due Date: Prior to relocation.
- Speed Queen may also require that you reimburse it for costs it incurs during the review process of the relocation, including, but not limited to, attorneys’ fees.
11. Supplemental Training: $15 per hour, per person; plus reimbursement of Speed Queen’s actual costs, including travel, lodging, and meals
- Due Date: 14 days after billing.
- Speed Queen does not charge for the initial training for your Representative and managers (Speed Queen requires that you designate a single individual to serve as your designated “Representative” if the franchisee is an entity).
- If you want Speed Queen to train other personnel or if it determines additional training is required, you must pay Speed Queen this fee plus its actual costs of travel, lodging, and meals.
- Paid by electronic funds transfer.
12. Audit: cost of inspection or audit
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code to see which franchises are still available near you, saving you months of wasted research.📈Dreaming of Multi‑Unit Success? Lock In Prime Territories Before They're Gone.
Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does.- Due Date: 14 days after billing.
- Interest due if there is an understatement in the Royalty Fee or marketing contributions. You must pay cost of audit if understatement exceeds 1.5% of Gross Revenue in any month.
- Paid by electronic funds transfer.
13. Brand Standard Re-Audit (Mystery Shopper): $500, plus travel, accommodation, and meals, if required
- Due Date: 14 days after billing.
- If your operating results are below certain minimum standards that Speed Queen specifies in its Operating Manual, Speed Queen reserves the right to conduct extra mystery shops at your expense.
- Paid by electronic funds transfer.
14. Interest: the greater of prime plus 3% or maximum allowed by law
- Due Date: 14 days after billing.
- Interest is charged on any unpaid royalty, marketing, transfer, and other fees not received by the date due.
15. Indemnification: varies
- Due Date: As incurred.
- Subject to state law.
16. Costs and Attorneys’ Fees: varies
- Due Date: As incurred.
- Due upon your default.
17. Temporary Management Fee: 10% of Gross Revenue, plus reasonable costs
- Due Date: As incurred.
- If Speed Queen determines, in its reasonable discretion, that it must temporarily manage your Branded Business, then you shall pay all costs incurred by Speed Queen to manage your Branded Business, including any and all travel expenses, room and board, and compensation of Speed Queen’s employees.
18. Supplier/Product Evaluation: varies
- Due Date: As incurred.
- Due if you want to buy an alternative item or purchase the item from an alternative supplier. Speed Queen may charge you or the supplier a reasonable fee for the inspection and evaluation of such item.
19. Late Fee: $100
- Due Date: When billed.
- Due for each late or dishonored payment.
- Subject to state law.
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