How Do I Start a Laundromat Business? Buying vs. Building: 3 Things to Decide First
If you're considering investing in a laundromat business, you're probably wondering: What's the smartest way to start a laundromat business, buy one that's already running, or build one from nothing?
Buy an existing store and you inherit someone else's equipment, lease and customer base, for better or worse. Build new and you get to choose everything, but you wait for permits and construction before a single machine turns on. Both paths have their own pros and cons, so what should you do?
Let's review three common factors, so you can make a more informed decision about your business.
1. How Much Does It Cost to Buy an Existing Laundromat?
Buying an already established laundromat business starts with one question: What does it cost to keep the store running the way it's running now, not just to acquire it? You're not just buying machines. You're taking on the lease and customer service, so a walk-through and an honest look at the numbers tell you whether those are decisions worth inheriting.
- Start with the machines. Ask for service records and model numbers on every washer and dryer on the floor. Machines nearing the end of a typical service life (around 25 years) can turn into a replacement bill within your first year.
- Check the lease terms. Coin laundries commonly sign long-term leases, often 10 to 25 years, according to the Coin Laundry Association, so the lease you inherit may run well past your own ownership horizon.
- Know your customers. A store's daily traffic pattern, its mix of wash-and-fold versus self-service and the neighborhood around it tell you whether the revenue you're seeing is stable or resting on a habit that could shift.
Wondering about costs? The Coin Laundry Association reports that coin laundry market values commonly range from about $50,000 to more than $1 million, with annual cash flow that can run between roughly $15,000 and $300,000 depending on size and location. Where a specific store lands in that range depends on its equipment, lease and customer base, which is exactly why the walk-through pays for itself.
Mark Hickey of Spin City Laundromat saw that homework pay off firsthand. He researched laundromats as a stable business to buy into and leaned on his local distributor, Mike Leake, for guidance before acquiring two existing stores. Hickey called that guidance "like the Google™ of the laundry industry" for how much it mattered before he ever made an offer.
2. How Much Does It Cost to Build a Laundromat Business?
Building a laundromat business means facing a different cost question, not what you're paying for revenue history, but what you're paying to create that revenue from nothing. You choose the layout, the equipment mix, payment technology and important tech offerings like ProCapture™ for lint management and Command™ for operations and business tracking. That control comes with a trade-off: a longer wait before you open your doors and start making money.
Site selection and permitting alone can eat months off your timeline. According to American Coin-Op, distributors report that a new build commonly runs six to nine months or longer from site selection to grand opening, depending on the market and the permitting process. So, how much does it cost to build a laundromat business? Your budget spreads across buildout, utility hookups, permitting fees and new equipment, so more of what you spend goes toward assets you chose rather than assets you inherited.
Whether that trade-off is worth it depends on how patient your capital is. Operators who want control lean toward building. Operators who want cash flow sooner lean toward buying.
John and Ceara Templin built Laundry Lounge from the ground up, and their story shows the right distributor matters as much as the timeline. Before they broke ground, their local distributor walked them through floor space, equipment and financing, so they were ready to make an offer the moment they found a site. "I didn't have to worry about anything except signing paperwork," Templin said. According to their distributor, Tom Tobiassen of Daniels Equipment Company, the store was making money within its first 30 days open.
3. Where Financing Looks Different Between the Two Paths
Whichever door you walk through, the financing conversation looks different and knowing that before you sit down with a lender puts you in the stronger seat.
- Buy an existing store and a lender can review your actual revenue, utility costs and machine utilization instead of relying on projections. That operating history does a lot of the talking for you.
- Build new and financing must account for a construction and permitting timeline before the store generates a dollar of revenue, so a lender will want a clear budget and schedule alongside your business plan.
Ready to Take the Next Step?
You don't have to work out if buying or building is best for your business alone. Huebsch® financing and your local distributor network work alongside both paths, helping you think through equipment selection, timing and budget before you ever talk about numbers with a lender.
Common Questions About Starting a Laundromat Business
Do I need laundromat experience before I buy or build one?
No. Many first-time investors buy or build their first laundromat with no direct industry background. What matters more is who you have in your corner. A distributor who knows equipment, financing* and your local market can fill in the knowledge gaps a business plan alone can't.
Should I talk to a distributor before or after I decide which path to take?
Before. Both Mark Hickey and the Templins brought in their distributor early, before making an offer or breaking ground. A distributor can help you evaluate a specific store or site before you've committed to either path, not just after you've already decided.
What's the biggest mistake people make when choosing between buying and building?
Comparing only the sticker price. A cheap existing store with outdated equipment or a restrictive lease can cost more over time than a new build, and a new build timeline can outlast an investor's patience. Look at the full cost and timeline picture, not just the headline number.
Is building a laundromat a good investment?
It can be, if you have the patience for a longer runway and want control over layout, equipment and pricing from day one. Huebsch customers John and Ceara Templin, who built Laundry Lounge from the ground up, were reportedly profitable within 30 days of opening.
Financing programs are subject to credit approval and underwriting. Terms may vary based on the applicant's creditworthiness, time in business and financial strength. This information is for general guidance only and is not a guarantee of financing approval or specific loan terms. Huebsch does not provide legal, tax or accounting advice.
