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Starting a Laundromat – How Much Does It Cost?

Do you want to know exactly how much it cost to start a laundromat? If YES, here is a detailed cost analysis for starting a laundromat and raising finance.

As the name implies, a self-service laundry or coin wash/laundry or laundromat is a laundry facility where people come in to personally wash and dry their clothes. Technically, customers provide their own labour and still pay for making use of the laundry equipment available.

Customers have the option of paying with coins which is the popular payment options, but they can also pay via swipe cards that subtract the cost of the wash or dry or even via mobile money. Despite the fact that customers provide their own labour, some owners of laundromat still employ staff to man or provide assistance to customers.

It is normal to find laundromats where staff are employed to man the operations providing added value services like helping customers iron their clothes, starch their clothes, and fold their clothes. Usually when laundromats hire employees, the core responsibility assigned to them are to man the counter, give directions to customers, sell washing powder, sell laundry bags, provide change and watch over the washing machines and other equipment in the laundromat to guard against theft of the machines or even customers clothes.

Although the laundry industry can be said to be a competitive industry, but it does not in any way stop entrepreneurs who are creative to still make headway in the industry. There are loads of people that patronize laundromats; busy corporate executives, students, and even senior citizens.

In the bid to stay afloat in the highly competitive laundromat business, owners of laundromats now go the extra mile to ensure that they make their facility welcoming and conducive for customers. Laundromats now have coffee bars, snack bars, cigar lounge, video games, children’s playground and free Wi-Fi et al.

Over and above, any aspiring entrepreneur can comfortably start his or her own laundromat business by acquiring an existing laundromat and then refurbish it to meet the expected standard or start the business from the scratch by constructing a new laundromat and then equipping it with the needed equipment and accessories.

How Much Does It Cost to Start a Laundromat?

The cost analysis as it relates to starting a standard laundromat business in the United States of America, Canada, United Kingdom, and Australia can be said to be almost the same except for few variations. For example, the cost of setting up a full-service state of the art laundromat facility which has the following; self-service washing machines, clothes dryer/drying machines, industrial pressing iron, ironing boards, sewer connection, cleaning supplies, soap, detergents/washing powder, bleach, starch/adhesive, laundry bags et al are the same especially when bench–marked against the US Dollars.

For instance, if you live in the United Kingdom and you decide to import industrial washing machines, industrial pressing irons, cloth dryers and other equipment from Japan, you will pay same price for these machines no matter the part of the world you live in, the only variation will be the cost of shipping the goods to your destination.

Other factors that may be slightly different in terms of costing when it comes to starting a standard laundromat business in any of the countries listed above are cost of labor, cost of transportation and logistics, local tax, insurance policies, business incorporation fee, rent/leasing amongst other factors.

Over and above, when it comes to starting a medium scale laundromat company, you should be prepared to either rent or lease a standard and centralized facility with good human and vehicular traffic; this is going to be one of the areas where you are expected to spend the bulk of your start–up capital.

How Much Does It Cost to Start a Laundromat in the United States?

These are the key expenses you are expected to make when starting a medium scale but standard laundromat company business in the United States of America;

  • The total fee for registering the business in the United States of America – $750.
  • Legal expenses for obtaining licenses and permits (Health department license and business license) and permits (Fire department permit, Air and water pollution control permit, and Sign permit et al) as well as accounting services (CRM software, Payroll software, P.O.S machines and other software) – $15,300.
  • Marketing promotion expenses for the grand opening of the laundromat company in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • The cost for hiring a business consultant (including writing business plan) – $2,500.
  • The cost for insurance (general liability, theft, workers’ compensation and property casualty) coverage at a total premium – $30,400.
  • The cost for leasing a standard facility in a good and centralized location – $250,000
  • The cost for remodeling the facility – $100,000.
  • Other start-up expenses including stationery ($500), phone and utility (gas, sewer, water and electric) deposits ($6,500).
  • The operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
  • The cost for start-up inventory and laundry machines and equipment (washing machines, dryers, industrial pressing irons, ironing board, washer hook-up fees (sewer connection), cleaning supplies, soap, detergents/washing powder, bleach, starch/adhesive, laundry bags, invoices for wash-and-fold, bathroom supplies, racks, hooks/hangers et al) – $350,000
  • The cost for store equipment (cash register, security, ventilation, signage) – $13,750
  • The cost for the purchase of furniture and gadgets (Telephone, printing machines, computers, tables and chairs et al): $14,000.
  • The cost for building and hosting a website: $600
  • The cost for opening party: $8,000
  • Miscellaneous: $10,000

You will need an estimate of nine hundred and fifty thousand dollars ($950,000) to successfully set up a medium scale but standard laundromat company in the United States of America. Please note that this amount includes the salaries of all the staff for the first 3 months of operation and a business with more than one outlet in key locations within same city.

Starting a small scale but standard laundromat company business that can only service a handful of clients per–time in just one location in the United States of America will cost about two hundred and fifty thousand dollars to five hundred thousand dollars ($250,000 to $500,000).

When it comes to starting a standard and large-scale laundromat company with several outlets in key cities in the United States of America, a laundromat company that can accommodate over twenty clients per-time and a company with the intention of selling franchise and also offering complimentary services, then you should look towards budgeting well over two million, five hundred thousand dollars ($2.5 million).

How Much Does It Cost to Start a Laundromat in the UK?

These are the key expenses you are expected to make when starting a medium scale but standard laundromat business in the United Kingdom;

  • In the United Kingdom, online applications are usually registered within 24 hours and cost £12 (paid by debit or credit card or PayPal). Postal applications take 8 to 10 days and cost £40 (paid by check made out to ‘Companies House’). There’s a same day service costing £100.
  • Legal expenses for obtaining licenses and permits (Health department license and business license) and permits (Fire department permit, Air and water pollution control permit, and Sign permit et al) as well as accounting services (CRM software, Payroll software, P.O.S machines and other software) – £13,300
  • Marketing promotion expenses for the grand opening of the laundromat in the amount of £3,500 as well as flyer printing (2,000 flyers at £0.04 per copy) for the total amount of £3,580.
  • The cost for hiring a business consultant (including writing business plan) – £2,500.
  • The cost for insurance (general liability, theft, workers’ compensation and property casualty) coverage at a total premium – £28,400.
  • The cost for leasing a standard facility in a good and centralized location – £205,000.
  • The cost for remodeling the facility – £80,000.
  • Other start-up expenses including stationery (£300), phone and utility (gas, sewer, water and electric) deposits (£1,500).
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – £60,000
  • The cost for start-up inventory and laundry machines and equipment (washing machines, dryers, industrial pressing irons, ironing board, washer hook-up fees (sewer connection), cleaning supplies, soap, detergents/washing powder, bleach, starch/adhesive, laundry bags, invoices for wash-and-fold, bathroom supplies, racks, hooks/hangers et al) – £305,500
  • The cost for store equipment (cash register, security, ventilation, signage) – £9,500
  • The cost of purchase and installation of CCTVs: £4,500
  • The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): £2,500.
  • The cost for building and hosting a website: £600
  • The cost for opening party – £6,300
  • Miscellaneous: £8,000

You will need an estimate of nine hundred and five British Pounds Sterling (£905,000) to successfully set up a medium scale but standard laundromat company in the United Kingdom. Please note that this amount includes the salaries of all the staff for the first 3 months of operation and a business with more than one outlet in key locations within same city.

Starting a small scale but standard laundromat company business that can only service a handful of clients per–time in just one location in the United Kingdom will cost about two hundred and five thousand to four hundred and eighty thousand British Pounds Sterling (£205,000 to £4800,000).

When it comes to starting a standard and large-scale laundromat company with several outlets in key cities in the United Kingdom, a laundromat company that can accommodate over twenty clients per-time and a company with the intention of selling franchise and also offering complimentary services, then you should look towards budgeting well over two million British Pounds Sterling (£2 million).

How Much Does It Cost to Start a Laundromat in Canada?

These are the key expenses you are expected to make when starting a medium scale but standard laundromat company business in Canada;

  • For federal incorporation of business in Canada, the cost to incorporate is $200 if filed online through Corporations Canada’s online Filing Centre ($250 if filed through other means).
  • Legal expenses for obtaining licenses and permits (Health department license and business license) and permits (Fire department permit, Air and water pollution control permit, and Sign permit et al) as well as accounting services (CRM software, Payroll software, P.O.S machines and other software) – $15,300.
  • Marketing promotion expenses for the grand opening of the laundromat company in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • The cost for hiring a business consultant (including writing business plan) – $2,500.
  • The cost for insurance (general liability, theft, workers’ compensation and property casualty) coverage at a total premium – $30,400.
  • The cost for leasing a standard facility in a good and centralized location – $250,000
  • The cost for remodeling the facility – $100,000.
  • Other start-up expenses including stationery ($500), phone and utility (gas, sewer, water and electric) deposits ($6,500).
  • The operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000.
  • The cost for start-up inventory and laundry machines and equipment (washing machines, dryers, industrial pressing irons, ironing board, washer hook-up fees (sewer connection), cleaning supplies, soap, detergents/washing powder, bleach, starch/adhesive, laundry bags, invoices for wash-and-fold, bathroom supplies, racks, hooks/hangers et al) – $350,000.
  • The cost for store equipment (cash register, security, ventilation, signage) – $13,750.
  • The cost for the purchase of furniture and gadgets (Telephone, printing machines, computers, tables and chairs et al): $14,000.
  • The cost for building and hosting a website: $600
  • The cost for opening party: $8,000
  • Miscellaneous: $10,000

You will need an estimate of nine hundred and fifty thousand dollars ($950,000CAD) to successfully set up a medium scale but standard laundromat company in Canada. Please note that this amount includes the salaries of all the staff for the first 3 months of operation and a business with more than one outlet in key locations within same city.

Starting a small scale but standard laundromat company business that can only service a handful of clients per–time in just one location in Canada will cost about two hundred and fifty thousand dollars to five hundred thousand dollars ($250,000CAD to $500,000CAD).

When it comes to starting a standard and large-scale laundromat company with several outlets in key cities in Canada, a laundromat company that can accommodate over twenty clients per-time and a company with the intention of selling franchise and also offering complimentary services, then you should look towards budgeting well over two million, five hundred thousand dollars ($2.5 millionCAD).

How Much Does It Cost to Start a Laundromat in Australia?

These are the key expenses you are expected to make when starting a medium scale but standard laundromat business in Australia;

  • In Australia, the fees to register your business name with ASIC include: $34 for 1 year. $80 for 3 years
  • Legal expenses for obtaining licenses and permits (Health department license and business license) and permits (Fire department permit, Air and water pollution control permit, and Sign permit et al) as well as accounting services (CRM software, Payroll software, P.O.S machines and other software) – $15,300.
  • Marketing promotion expenses for the grand opening of the laundromat company in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • The cost for hiring a business consultant (including writing business plan) – $2,500.
  • The cost for insurance (general liability, theft, workers’ compensation and property casualty) coverage at a total premium – $30,400.
  • The cost for leasing a standard facility in good and centralize location – $250,000.
  • The cost for remodeling the facility – $100,000.
  • Other start-up expenses including stationery ($500) and phone and utility (gas, sewer, water and electric) deposits ($6,500).
  • The operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
  • The cost for start-up inventory and laundry machines and equipment (washing machines, dryers, industrial pressing irons, ironing board, washer hook-up fees (sewer connection), cleaning supplies, soap, detergents/washing powder, bleach, starch/adhesive, laundry bags, invoices for wash-and-fold, bathroom supplies, racks, hooks/hangers et al) – $350,000
  • The cost for store equipment (cash register, security, ventilation, signage) – $13,750
  • The cost for the purchase of furniture and gadgets (Telephone, printing machines, computers, tables and chairs et al): $14,000.
  • The cost for building and hosting a website: $600
  • The cost for opening party: $8,000
  • Miscellaneous: $10,000

You will need an estimate of nine hundred and fifty thousand dollars (AUD$950,000) to successfully set up a medium scale but standard laundromat company in Australia. Please note that this amount includes the salaries of all the staff for the first 3 months of operation and a business with more than one outlet in key locations within same city.

Starting a small scale but standard laundromat company business that can only service a handful of clients per–time in just one location in Australia will cost about two hundred and fifty thousand dollars to five hundred thousand dollars (AUD$250,000 to AUD$500,000).

When it comes to starting a standard and large scale laundromat company with several outlets in key cities in Australia, a laundromat company that can accommodate over twenty clients per-time and a company with the intention of selling franchise and also offering complimentary services, then you should look towards budgeting well over two million, five hundred thousand dollars (AUD$2.5 million).

Estimating Start – Up Cost for Laundromat Company Business was Based on the following factors;

  • Staff/Manpower

When it comes to starting a standard laundromat company business on a large scale, you would need the services of the following professionals;

  • Manager (Owner)
  • Human Resources and Admin Manager
  • Accountant/Cashier
  • Merchandize Manager
  • Marketing and Sales Executive
  • Laundromat Attendant
  • Cleaners
  • Security Guard

Can a Laundromat Business be Bootstrapped on a Lean Budget Right from Home?

Because of its nature in terms of size and cost of the machines and equipment involved in starting and operating a laundromat company, it is obvious that it cannot be bootstrapped on a lean budget from home.

As a matter of fact, the business is open to the general public and you would not want complete strangers to continue to storm your house on a regular basis and at different times of the day simply because you want to run a self–service laundromat business.

On the other hand, if you want to start a similar business such as laundry/dry cleaning business, then you can successfully bootstrap the business on a lean budget right from your home.

How Much Does It Cost to Buy a Laundromat Franchise?

In the United States of America, the Average Cost of Purchasing a Laundromat Franchise is $50,000. Examples of 3 Well – Known Laundromat Franchising Companies in the United States of America are;

  • Maytag® Commercial Laundry – Franchising Company
  • Mac-Gray Laundromat – Franchising Company
  • Super Laundry Laundromat

In the United Kingdom, the Average Cost of Purchasing a Laundromat Franchise is £50,000. Examples of 3 Well – Known Laundromat Franchising Companies in the United Kingdom are;

  • Huebsch Coin Laundries – Franchise
  • Maytag® Commercial Laundry – Franchise
  • Freehold Launderette

In Canada, the Average Cost of Purchasing a Laundromat Franchise is $60,000 (Canadian Dollar). Examples of 3 Well – Known Laundromat Franchising Companies in Canada are;

  • Laundrylux Canada
  • Spotless Dry Cleaners
  • Super Laundry Laundromat

In Australia, the Average Cost of Purchasing a Laundromat Franchise is AUD$50,000. Examples of 3 Well – Known Laundromat Franchising Companies in Australia are;

  • Laundry Solutions Australia
  • Eco Laundry Room
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