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08 Sep, 2017

Coin Laundry Franchise

Coin laundry (laundromat) businesses have a reputation for high returns with a typical unit generating anywhere between 20-50% ROI (return on investment).Although most coin laundry businesses are individual owned and operated, the overall success rate in the industry is over 90%.This is a clearly a misnomer since typically ,success rates for independent units for all industries are quite low with a failure rate of 90% for all new businesses in their first year of operation. Coin laundry businesses have the advantage of being relatively less risky to start than a typical independent unit in other industries. There are an estimated 28,400 coin laundries in the country today. The strange fact is that there are no coin laundry franchises in existence in the country today. For people who want to open a coin laundry business, a franchise would seem like the perfect answer since franchises in all industries are inherently less risky business prepositions than independently owned units. The lack of Laundromat franchises, however, ought not to be seen as a disadvantage but an opportunity waiting to be exploited. The coin laundry industry is highly fragmented and as result there are many inefficiencies in it. These can be exploited by a prospective business owner for maximum benefit. An independent unit has some advantages over a franchise, on of these being the freedom and control it provides to its owner. These businesses also have the advantage of providing a basic service that is recession resistant and the coin laundry business owner is guaranteed of a constant and stable income stream regardless of the economy. There is also an active resistance by coin laundry businesses to franchise their operations. In the past, the coin laundry business was typically owned by a person, most of the time newly retired, who was looking for a less time consuming business to run. The trend has shifted and nowadays the business is proving to be more appealing to financially stable individuals who would like to start a chain of Laundromats. The leading manufacturer of coin laundry machines, Alliance Laundry Systems, has been receiving a lot of inquiries from people who are interested in starting coin laundry franchises. These people are eager to cash in on the industry’s well proven ability to weather any economic downturns with no major effects on its income plus the low risk associated with opening a coin laundry business. The company sells the machines to people and helps them set up a cleaning facility at no extra cost.

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