Deciding to buy a laundromat is an intelligent and profitable place to invest, but it’s not simple or without risks. Here are some things to consider before buying a laundromat.
Buying a Laundromat: What to Know, Where to Look
Acquiring an existing laundromat can be just as much an endeavor as building your own. In fact, all of the pre-installation checks listed for a new store also apply to buying an existing store, as well as a few others.
As you prepare to purchase your laundromat operation, here are some important considerations to take into account to maximize return on your investment.
- Lease: Even though the store has been in business for a while, don’t assume it has a valid lease in force. The owner could be a tenant at will (month-to-month) or have a year or two left on the lease with no options. Is the lease assignable?
- Equipment: How old is the equipment? What sort of condition is it in? If the equipment is old or out of order, you may be faced with a big replacement or repair bill from the start.
- Financial records: What do the last three year tax returns show for income and profit? When buying an existing store, remember that you are buying cash flow—not equipment.
Contact us for more information on getting started with a laundromat!