PUBLISHED JUNE 27, 2024
Should I Develop a Chain of Laundromats?
There is a lot to like about owning and developing multiple Laundromat locations. However, there are some downsides to getting too deeply involved in this business including no holidays off, no sick leave, no paid vacation time, no 401k contributions and no early retirement. How many years do you have with your company? How close to retirement? If you have a government or teaching gig, it's hard for your own Laundromat business to match the long-term value of government and other jobs with great retirement benefits.
As a general policy, I've never advocated owners to leave a well-paid job with benefits for multiple Laundromat ownership. I did it, but I wonder if it would be the right decision for everyone. If you own a multiple store Laundromat business, you'll could be working until the day you die. You may end up hating the business. Is it the best option for you? When you own Laundromats alone, you need to plan for your own insurance and retirement income. Your health can fail. You’re limited on moving to another city for better weather during retirement.
Making a lot more money can be a curse. The more you make the more you can spend. No union ensuring you’re putting away for retirement. Wealth can be a shooting star that shines bright and then dims out. In my very early 20’s, I had a law enforcement government job in Washington, D.C. that provided 80% retirement pay after 20 years. It also provided for yearly cost of living increases and medical insurance for life. I left it for Laundromats. Made lots of money, spent a lot of money, but I could have started a second Laundromat career at 43 instead of 23 or 24. What if I had stunk as a Laundromat owner and distributor? What if technology changed? What if there had been increased competition? What if the self-serve market became smaller, caused by an increasing use of pickup and delivery.
My advice is to stop dreaming at growing your locations and buy only those Laundromats you can operate and still keep your job unless you’re willing to risk your financial future solely on this business. There is no such thing as absentee ownership; success is not guaranteed. Many owners tire of this business, lose money and wish they hadn't expanded. Success at your first location doesn't mean you'll be as successful at additional locations. In my experience 25% of Laundromat buyers wish a year later they had never bought their store, and this doesn't include those who bought based on sketchy information.
Owning a Laundromat means you're on call 24/7 and the stress of this constant pressure sometimes cannot offset increased cash flow in your life. No time to take vacations is another often cited complaint. Emergencies demanding your attention can often happen at the most inappropriate times.
For those people who dream of building a chain of Laundromat may discover that it's difficult to find multiple stores located in reasonable distance from each other needed to limit the amount of time you're spending driving from location to location.
If the Laundromat business always involved success, you wouldn't find so many of them available for sale on BizBuySell, BizBen, LoopNet and multiple listing sites. Notice you never see McDonalds or gas stations being offered on these sites. Why so many Laundromats?
Of course, this is a general response based on not nearly enough of your specific information, but useful to many who think everyone who gets into the business can be a Laundromat millionaire. Successful Laundromats take hard work, time, skill and continued involvement. It is often a younger man’s job. Just my thoughts.