The Financial Breakdown of a LaundroLab Franchise

This franchising opportunity can be one of the better options for entrepreneurs who want to start a laundromat service business. We will analyze the LaundroLab franchise cost, fees, and potential profit/salary that the owner of this company’s franchised location can expect per year.

Key Takeaways

  • LaundroLab opened the door of its first store in 2018, and since 2020 they have started market expansion thru franchising.
  • To start the LaundroLab franchise, investors need to spend between $321,330 and $482,650; this initial cost estimation includes an initial fee of $49,500.
  • On a weekly basis, the franchise owner must pay from its franchised location gross sales 7% for franchisor service.
  • The owner of an average LaundroLab earning franchise location can expect to make approximately $120,000 of salary per year. 

What is LaundroLab

LaundroLab is a company from Charlotte that offers laundromat and other laundry services. Their business concept is built around providing customers with a clean and safe environment with technological features that have become the norm today.

According to Statista, laundry services in the U.S. will have sales of approximately 129,0 billion U.S. Dollars by 2024. So investors can expect that in the future, they can profit from positive trends that this industry can offer.

Alex Smereczniak and Dan D’Aquisto started developing this new laundry concept in 2016 under the name 2ULaundry. In 2018, they opened their first store, and since 2020 it has been possible to start a franchise under the name “LaundroLab”. 

The franchise owner can expect to generate revenue from multiple sources since this company location provides all kinds of laundry and dry cleaning services.

Also, vending machines are presented in their facilities, so the owner can expect to make a profit from selling sodas and snacks. 

Laundry pick-up and delivery are also part of this business’s everyday working activities, which means they offer a complete service to interested customers. 

How Much Does The LaundroLab Franchise Cost

LaundroLab’s total necessary franchise investment cost is between $321,330 and $482,650, including an Initial Fee of $49,500, which investors must pay to have the right to use the brand trademarks.

The highest cost of starting this franchise will be related to necessary leasehold improvements that the franchisee must do to operate this type of business.

Typical LaundroLab franchise operates in the space of 3,000 to 4,000 square feet, so it will be necessary to improve real estate and install all fixtures, signage, equipment, and furnishings according to franchisor specifications. 

Also, the investor will need to purchase all supplies, including point of sale, computer hardware and software, and security systems) decor items, washers, dryers, changers, water heaters, washer bulkheads, computer and POS equipment, and vending machines, and because of that, LaundroLab franchise cost is so high.

LaundroLab franchise cost list:

  • Initial Fee: $49,500
  • Lease Deposit Note: $2,000 to $10,000 (first month)
  • Grand Opening Advertising Fee: $10,000
  • Leasehold Improvements: $82,500 to $150,000
  • Signage Package: $1000 to $5,000
  • Vending Machines: $5,000 to $7,500
  • Camera & Security System: $2,500 to $7,500
  • Other Equipment and Supplies: $138,750 to $170,000
  • Computer Equipment: $500 to $2,000
  • Point of Sale Equipment: $500 to $1,000 
  • Inventory: $500 to $4,000
  • Safes: $550 to $900
  • Scales and Containers: $0 to $700
  • Office Equipment: $150 to $300
  • Televisions: $4,000 to $5,600 
  • Furniture: $400 to $800
  • Uniforms: $80 to $150
  • Licenses and Professional Services: $500 to $1,000
  • Prepaid Insurance Premium: $900 to $2,700
  • Training Expenses: $1,000 to $4,000
  • Legal Fees: $1,000 to $5,000
  • Additional funds: $20,000 to $45,000 – Working capital first 3 months
  • ESTIMATED TOTAL COST: $321,330 to $482,650 

LaundroLab Financing Options

This franchisor doesn’t offer direct or indirect financing, so the investor will need to have the necessary capital available in liquid assets or try to get a loan from a third-party source to finance the initial investment cost.

LaundroLab Franchise Fees

One-Time Fees

The investors are obligated to pay an Initial Fee of $49,500 when they sign the Franchise Agreement and must spend $10,000 on the grand opening advertising fee during the one week immediately before opening and through 60 days after the beginning of the business. 

List of LaundroLab one-time franchise fees:

  • Initial Fee: $49,500
  • Grad Opening Ad Fee: $10,000

Who Has Right To Discounted Initial Fee Cost

Only investors who opt to open more than one franchise location have certain discount rights regarding costs related to the initial fee. In practice, it means they will pay $39,500 for the second location they start. 

Ongoing Royalty Fees

The LaundroLab franchise owner from its franchised location gross sales will need to pay the franchisor 6% of the Royalty Fee and 1% of the Brand Fund Contribution Fee.

Also, there will be costs associated with Technology Fee, which is $200 per month.

Franchise applicants must be aware that every location must spend a minimum of $250 per month on local advertising, marketing, and promotional programs during the whole duration of the franchise agreement.

LaundroLab list of all ongoing franchise royalties: 

  • Royalty: 6% of Gross Revenue
  • Brand Fund Contribution Fee: 1% of Gross Revenue
  • Local Advertising Fee: $250 per month
  • Technology Fee: $200 per month

LaundroLab Franchise Profit and Owner Salary Estimation

Existing LaundroLab franchises, on average, make $622,638 in gross revenue with at least a 20% net profit margin. So the owner of an average earning location can expect to make approximately $120,000 of salary per year. 

The highest operating cost of this business are payroll-related expenses and Rent & TICAM Expenses, so investors who already own appropriate real estate can expect to make a very high profit by starting this franchise in their own space.

How We Make Estimation of LaundroLab Franchise Owner Salary

All gross revenue and operating costs data are collected from this company’s Franchise Disclosure Document Item 19. 

However, potential investors must be aware that this franchisor has only one franchised location at present, so the sample of numbers of stores is not as broad as we can find in documents of more developed franchising systems.

Financial performance of LaundroLab locations by years

At the end of 2019:

  • Total Gross Revenue:  $545,146 
  • Total Operating Costs: $368,668 
  • Estimated EBITDA: $176,478
  • Profit Margin: 32.37%

At the end of 2020:

  • Total Gross Revenue: $622,638
  • Total Operating Costs: $392,499
  • Estimated EBITDA: $230,140
  • Profit Margin: 36.96%

According to the franchisor, LaundroLab franchises deliver profit margins between 36.96% and 32.37%. Still, investors must be aware that all operating costs that will occur are not put in the calculation of estimated EBITDA.

The above figures exclude owner compensation/salary, healthcare, and employee benefits costs; equipment cost; travel and entertainment expenses; license and permit fees, professional services expenses, and tax!

So we estimated that LaundroLab would deliver to franchise owners at least a 20% net profit margin when all operating costs are included in the calculation.

Is it Profitable to Own LaundroLab Franchise?

Owning a LaundroLab franchise can be a very profitable business venture since they deliver a 20%+ profit margin, which is a very high percentage if we analyze all franchising brands in every industry.  

The estimated LaundroLab owner salary of average earning location is $120,000, and the average franchise owner profit in the franchising industry is approximately $60,000 per year. 

So, although this franchising concept has only one franchise location at the moment, if we analyze data that the franchisor has shown in the disclosure document, we can conclude that this company’s franchised locations have very good profit potential and can be a very lucrative business venture.

How much is LaundroLab Franchise Agreement Duration

LaundroLab franchise agreement is usually signed for 10- a year term; after that, investors have the right to renew the contract for an additional ten years. 

LaundroLab Franchise Requirements

Franchise applicants need to have a Net Worth of $750,000 and own $350,000 in Liquid Assets to be approved by this franchisor. This is not a cheap franchise, so requirements regarding start-up capital are pretty high.

Also, the investor’s spouse must sign a Spousal Liability document for all financial obligations that can occur under the franchise agreement.

This franchisor demands that at least one person be the store location’s supervisor. However, there is no obligation that the owner must be an onsite manager, so it is possible to hire someone to run the business’s day-to-day operations.


The laundromat industry is highly competitive, so it is important to find a location in an area where the market is not oversaturated with similar businesses. That is the key to operating a successful LaundroLab franchise that will deliver high revenue.


Written by:

Stuart MacPherson

Hi, I'm Stuart. I've been running my own small business since 2019 after leaving a successful career in finance. I created FranchiseTheory to share my enthusiasm for franchising and the franchise business model.

Connect with me: Linkedin | Reddit | Twitter