Franchise Deep Dive: LaundroLab’s Franchise Costs, Fees, Profit and Data

Despite being relatively new to the franchising space, LaundroLab has become an emerging brand in its category and is aiming to reach 1,000 locations by 2029.

By Jeff DwyerStaff Writer

10:10AM • 10/20/23

LAST UPDATED: October 16, 2023
FRANCHISE WEBSITE: https://www.laundrolabfranchise.com/
NUMBER OF LOCATIONS: 11+
REPORTED COST TO GET IN: $1,593,716 to $1,943,180
REPORTED ROI (Item 19): See Below

LaundroLab is an emerging brand of laundromat franchises that aims to reimagine the laundromat experience into a “clean, welcoming and modern one.” LaundroLab prides itself on being a clean, safe and consistent experience for its customers every time and every location features high-end amenities such as free Wi-Fi, televisions and lounge access.

The brand was established in Charlotte, North Carolina in 2020 by founders Alex Smereczniak and Dan D'aquisto. The pair launched the brick-and-mortar concept as a counterpart to their laundry and dry-cleaning pick-up service 2ULaundry, which they founded as a college classroom project in 2016. The duo opened their first store, known as The Laundry Room, as a proof of concept in 2018 and officially started offering LaundroLab franchise locations in 2021 to immediate success, and opened three locations in 2022 in Tampa, Florida, Charleston, South Carolina and Charlotte, North Carolina.

How Many LaundroLab Locations Are There?

As of October 2023, there are 11 total LaundroLab locations, consisting of two corporately-owned units and nine franchises. According to Beck Miller, the director of franchise development at LaundroLab, the brand has more franchise locations in development and expects to open another 10 units by January.

LaundroLab is aiming to establish at least 1,000 franchise units by 2029.

What Is LaundroLab’s Business Model?

At its core, LaundroLab’s business model is designed to put customer-service at the forefront of service. The brand emphasizes a bright, clean and welcoming experience that brings the community together and provides guests with a trusted and reliable environment to take care of their laundry needs. The brand achieves this by investing in state-of-the-art laundry equipment, ensuring efficiency and quality in every wash.

“We pride ourselves on operational excellence and providing a five-star experience to our customers and store owners,” the brand stated on its website.

LaundroLab lists the following benefits to operating a laundromat franchise:

It’s an essential business
Simple labor
Semi-absentee opportunity
Tax advantages
Low marketing spend
Limited inventory

For prospective franchisees, LaundroLab provides ample support and assistance to get your location up and running. The brand provides support in everything from real estate and site selection, design and construction, operations and training, marketing, human resources and technology.

How Much Can LaundroLab Franchise Owners Make?

In 2022, the average gross revenue of the company-owned LaundroLab Eastland location earned $370,433. In 2022, the average gross revenue for The Laundry Room location saw earnings of up to $1,421,897. To learn more, contact the team about reading the Franchise Disclosure Document (FDD), which will state the total earnings of any company or franchise-owned unit as a reference.

How Much Does It Cost to Open a LaundroLab Franchise?

The initial investment necessary to open a LaundroLab franchise unit can range from $1,593,716 to $1,943,180. This investment is broken down into the following costs:

Initial Franchise Fee: $49,500
New Franchised Business Opening Investment Services: $18,500
Delivery Account Setup: $0 to $8,000
Lease Deposit (First Month): $3,000 to $10,000
Grand Opening Advertising: $20,000
Leasehold Improvements; $540,000 to $620,000
Architecture/Engineering: $30,000 to $35,000
Signage: $10,000 to $20,000
Computer Equipment: $500 to $2,000
Point of Sale Equipment: $500 to $1,000
Laundry Equipment: $851,26 to $1,007,680
Inventory: $2,000 to $4,000
Licenses and Professional Services: $1,000 to $2,000
Prepaid Insurance Premium: $7,500 to $12,500
Training Expenses: $1,000 to $4,000
Working Capital (3 Months): $30,000 to $60,000
Camera and Security System: $20,000 to $40,000
Office Equipment: $500 to $1,000
Televisions: $2,000 to $5,000
Furniture: $4,000 to $12,000
Uniforms: $500 to $1,000
Legal Fees: $2,000 to $10,000

Franchise owners are also required to pay an ongoing 6% royalty fee, a 1% brand fund contribution, a $300 monthly technology investment and a local marketing fee of $500 to $1,000 per month.

What Is the Franchise Fee for LaundroLab?

The franchise fee required to open a LaundroLab franchise is $49,500. Interested candidates must also have a minimum net worth of $1 million and at least $500k in liquid assets.

Who’s On LaundroLab’s Leadership Team?

What Helpful Articles Can I Read to Learn More About LaundroLab?

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