Disclosures Laundromat Buyers Should Include in Offer to Purchase Agreement

Here is a partial list of some of the items that should be included, and attested to, in any offer to purchase of any existing of new stores from the Seller and their Broker, if any. Also see some of the Disclosures you should receive from any distributor selling you new stores or replacement or additional equipment.

Seller Disclosures that should be included in any offer to purchase a business:

  1. Seller is not aware of a new Laundromat being planned, or in progress, or a major remodel planned, or in progress, within three miles of this Laundromat.
  2. Seller is unaware of any major change in access or parking that is planned for the center, or access, which will could impact Laundromat business income.
  3. Seller is unaware of any street redesign or improvement of the roadway providing access to the Laundromat planned, or in process, by the city or State.
  4. Owner is not aware of a large regarding this Laundromat that is forthcoming, or any incidents that can or likely will result in a claim or lawsuit against the building, including a failure to have legally hired all service and staff of the Laundromat. There are no cash under the table employees.
  5. Seller is unaware of issues, incidents of notices that will result or suggest the business insurance being non-renewed or cancelled.
  6. Seller is unaware that Landlord is intending that Buyer will have to make a financial contribution under terms of the lease or will be making major improvements in the property that will have any impact on the parking, visibility or access to this Laundromat.
  7. Seller is not aware of underground water, sewer, electrical issues and/or ADA compliance issues related in any manor to this Laundromat.
  8. Seller is unaware of any utility service currently being paid through the billing of tenant that is not for the sole and exclusive use of the tenant.

Broker Disclosures that should be included in any offer to purchase equipment:

  1. Distributor agrees to not sell or deliver to any other Laundromat within a three-mile radius of the Laundromat, for a period of five years, any equipment to another Laundromat or business, or to develop, assist or be involved in building a new Laundromat.

  2. Distributor to disclose all sources of income they expect to receive from this sale, including but not limited to, referral fees from lenders, profit sharing from recommended contractors, free freight available from factories and profits on the sale of the equipment. There will not be any secret profits.

  3. Distributors to disclose all estimations of income projections or lender analysis available to the distributor, including those created by lenders directly to the distributor will be immediately release to the Buyer.

  4. Seller is aware that Landlord is in process of selling the building and the appraisal after sale will cause property taxes to skyrocket leading to increases in net/net/net or CAM fees.