Industry Overview

The coin laundry industry is said to have started approximately 60 years ago and was primarily a 'mom and pop' business where you find individuals or family owner/operators. However, in the past few years there are more people taking advantage of this all cash business...especially since it can be managed on a part-time basis and can most likely offer a better return on investment than the stock market. It is reported by the national Coin Laundry Association that there are about 35,000 coin-operated, self-service laundromats in the United States today.

Coin laundries generally occupy retail space in strip centers on long-term leases (10-25 years) and generate steady cash flow over the life of the lease. Coin laundries are unique small businesses in that they have no inventory or receivables. A minority of coin laundries employ attendants to oversee the day-to-day operations and maintain the laundry.

The Value

The market value of coin laundries range from $50,000 to more than $1 million, and can generate cash flow between $15,000 and $200,000 per year, depending on the size of the store and the number of washers and dryers in the equipment mix. Business hours typically run from 6 a.m. to 10 p.m. seven days a week, with some open 24 hours a day.

The primary user of coin laundries are renters, therefore, the reason you find most laundromats in densely-populated, renter-occupied areas is because the laundry facilities in apartment complexes are mostly inadequate for all the tenants to share, so they resort to using laundromats where they have a larger variety of washers and dryers at their disposal.

Return on Investment

From an investment perspective, you can typically see a 15% to 25% cash-on-cash return on your initial cash investment, per year. It is a perfect business for absentee management, retirees or someone with a full-time job looking for a positive cash flow investment.