What are some of the advantages of owning a Coin Laundry?
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Coin Laundries are a
simple business. No special skills are required and no special training is needed prior to buying a Coin Laundry. |
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Coin Laundries have a very predictable income stream
-- rarely any large fluctuations from week-to-week. Laundries are a necessity for many people and the revenues are not usually affected by outside factors such as falling stock markets or rising inflation. |
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Coin Laundries lend themselves very easily to absentee-ownership. |
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You don't have to be there all the time. This means you may continue your present employment and use the Coin-Op as an investment or instead of a part-time job. Many owners have more than one Coin Laundry because of this. |
What does it cost to buy a Coin
Laundry?
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Coin Laundries usually sell for between 1 and 1½
times their annual gross sales. For example, a Laundry with gross sales of $50,000 will probably sell for $50,000 to $75,000 depending on the profit, lease, location, equipment and other factors. |
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Many Sellers
offer some Seller financing in order to help
sell their store. Most will require a down payment of between 1/3 to 1/2
of the asking price. Although the terms for
the promissory note are negotiated between the
Buyer and Seller, typically notes are paid
back in 5-7 years, with interest rates between
6-7%. Normally these notes amortize out
naturally without any large
"balloon" payments. The machines in
the store serve as the collateral for Seller
financed notes. |
How can I be sure of the
sales and expense figures before I buy a
Laundry? What about the lease on the premises?
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When you make an offer to purchase a Laundry, it is made subject to your approval of the seller's books, records and lease on the premises. The seller provides you with complete books, records, and income ledgers. Monthly gas, water and electricity bills should cover at least one year. All wash-dry-fold and dry cleaning tickets are provided. You
will also receive a copy of the lease for your review and approval. |
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Once you are in possession of the seller's records and lease, you normally have
one to two weeks to be sure you are satisfied with your
“due diligence” before you decide whether to proceed with the sale. |
How much of my time is required to run a Coin Laundry?
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You want to be sure the Laundry is clean,
that vending machines and bill changers are full, and to periodically empty your machines of money. You have several options: |
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- Most owners visit the Laundry several times during the week.
- Other owners check in once a day.
- Some owners choose to work at the Laundry full-time on weekdays and use part-time staff at night and on weekends.
- Most owners hire employees to open, staff, clean and close the Laundry.
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Does someone need to attend the Coin Laundry all the time?
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Laundries are either unattended, partially attended or fully attended. |
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Someone only needs to attend the Laundry if wash-dry-fold or drop-off dry cleaning services are offered. |
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No attendant is required for a self-service Coin Laundry. |
Who handles equipment
repairs at the Coin Laundry?
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Typically when you buy a Coin Laundry all the equipment is in good working condition prior to the closing of the sale. |
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Most Coin Laundry owners use a repairman who is on call as needed and charges an hourly fee. Service contracts are rarely used. |
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Many owners do minor repairs themselves after watching and learning from their repairman.
Also, many equipment distributors sell CD ROMS
which show detailed maintenance and repair instructions
for their machines. Commercial Sales can provide you with names and phone numbers of reliable repairmen. |
Why should I use a
broker like Commercial Sales to buy a Coin Laundry?
Who pays the sales commission?
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