LaundroLab Franchise Cost, Revenue & Review 2026
- Investment
- $1.0M – $1.9M
- Disclosed sales
- $538K
- gross sales, not profit
- SBA charge-off
- 0.0%
- on 15 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
LaundroLab is a laundromat franchise operating modern, attended self-service laundry facilities. Franchisees run the stores, managing equipment upkeep, wash-and-fold service, and operations.
FranchiseVerdict summary · 2026
A LaundroLab franchise requires a total initial investment of $1.0M – $1.9M, including a $50K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $538K[2]. SBA 7(a) loans show a 0.0% charge-off rate across 15 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: 2025 filing · Data extracted: · Last cited check: · Staleness risk: medium - a newer filing may exist
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored7 of 8 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $1.0M – $1.9M
- 86th pct Cleaning & Ma…
- Avg gross sales
- $538K
- 16th pct Cleaning & Ma…
- Royalty
- 6.0%
- 14th pct Cleaning & Ma…
- Units
- 24
- 32nd pct Cleaning & Ma…
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Cleaning & Maintenance · color = vs category peers
Green = favorable by >10% vs Cleaning & Maintenance median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $1.0M – $1.9M including a $50K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $538K/year (median $562K), with an estimated 5% cash-on-cash return (based on EBITDA20 $118,677).
- RISKVerdict B (Above average), verdict score 69/100 (higher is better). SBA loan charge-off rate of 0.0% across 15 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +12 franchised outlets in the latest year (12 opened, 0 closed) (Item 20).
- GROWTHSystem growing at 633.3% CAGR over 3 years with 24 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- LaundroLab, LLC
- Parent company
- 2ULaundry, Inc.
- FDD Item 1, page 11 of the 2025 FDD
- CEO title
- CEO
- Jason Lepes
- Incorporated in
- North Carolina
- HQ
- 520 Elliot St., Charlotte, NC 28202
- Auditor
- Aprio, LLP
- Audited financials
- Franchisor revenue
- $849K
- vs $207K prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
- CEO
- Jason Lepes
- Headquarters
- North Carolina
- Founded
- 2020
- FDD year
- 2025
- States available
- 11
Can you afford it, and what does the money buy?
Entry cost runs 758% above the typical cleaning & maintenance franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $75K | $150K |
| Equipment, build-out, other | $908K | $1.7M |
| Total initial investment | $1.0M | $1.9M |
Source: LaundroLab 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.0M – $1.9M
- Bottom third — review vs category
- Liquid capital req'd
- $75K – $150K
- Bottom third — review vs category
- Franchise fee
- $50K – $50K
- Middle of category vs category
- Royalty
- 6.0%
- Set by a formula · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
- Payback period
- 22.3 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $300 |
| Transfer fee | $15K |
| Renewal fee | $5K |
| Inventory (initial) | $2K – $4K |
| Total fee load | 8.0% of rev |
What do units actually make?
Average unit sales land near the cleaning & maintenance norm.
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for LaundroLab until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$1.6M
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
FDD-reported earnings
The FDD reports $119K as EBITDA20 $118,677. This is a disclosed figure, not our estimate — we publish no modelled profit for LaundroLab.
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one LaundroLab unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
- Avg gross sales
- $538K
- Per unit, per year
- Median gross sales
- $562K
- Avg ebitda20 $118,677
- $119K
- Reported as EBITDA20 $118,677 in FDD Item 19
- Cash-on-cash
- 4.5%
- Based on EBITDA20 $118,677 / investment midpoint
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross and costs
- Sample size
- 10 outlets
- vs category median 32 · small
- Range (low → high)
- $193K→$1.1MCited, not corroborated — printed on page 79 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Quartile band
- $395K→$681K
- Bottom 25% → top 25%
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 10 / 10
- vs category median 4 / 10 · above
Compared against 191 Cleaning & Maintenance brands
Revenue is only 0.4x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $538K/year in gross sales. Revenue-to-investment ratio: 0.4x.
Fee burden
Total ongoing fee load of 8.0% (near the Cleaning & Maintenance median).
Disclosure
Transparency score 10/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 633.3% CAGR over 3 years across 24 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Cleaning & Maintenance medians
How LaundroLab Compares
Category median of published Cleaning & Maintenance brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 24
- Opened
- 12
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- N/A
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 92%
- vs corporate-owned
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Continuity rate
- 100.0%
- Units that stayed open
- Termination rate
- 54.5%
- Franchisor-initiated terminations
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 14 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- Illinois
- Indiana
- Michigan
- New York
- Rhode Island
- Virginia
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
Where the owners are · Item 20 owner list
22 current owners across 11 states; 13 former (terminated, transferred or not renewed) listed separately.
- TX 6
- NC 4
- AZ 2
- FL 2
- MI 2
- CO 1
- GA 1
- MA 1
- NV 1
- SC 1
- VT 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 15
- Loan volume
- $13.5M
- Median loan
- $1.1M
- 50th percentile
- Charge-off rate
- 0.0%
- on 15 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 7
- Defaults
- 0
- Typical loan rate
- 9.0%
- avg rate to borrowers
- vs industry
- 0.0%
- brand is above its industry ↑
- Jobs supported
- 163
- 1.2 per loan
- Lender concentration
- 40%
- top lender's share
Borrower mix: 100% went to startups / new businesses, 0% to established operators
Top lenders financing LaundroLab franchisees
Showing 3 of 7 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for LaundroLab from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 70%
- Avg interest rate
- 8.97%
- Lender concentration
- 40.0%
- Job velocity
- 1.2 per $100K
- NAICS benchmark
- 0.0%
- NAICS 812310
- Jobs supported
- 163
Top SBA lendersTop lender holds 40% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | The Huntington National Bank | 6 | $4.1M | N/A |
| 2 | United Community Bank | 3 | $4.1M | 0.0% |
| 3 | Harvest Small Business Finance, LLC | 2 | $1.3M | N/A |
| 4 | Cadence Bank | 1 | $400K | N/A |
| 5 | Citizens Bank | 1 | $1.2M | N/A |
| 6 | SouthState Bank, National Association | 1 | $1.3M | N/A |
| 7 | Wallis Bank | 1 | $1.1M | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 6 | 0 | -- |
| FLFlorida | 4 | 0 | -- |
| COColorado | 2 | 0 | -- |
| GAGeorgia | 2 | 0 | -- |
| NCNorth Carolina | 1 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
With a 0.0% charge-off rate across 15 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
LaundroLab is a micro-franchise system experiencing explosive growth (233% YoY) with tight unit economics and high payback timelines; sustainability and franchisee profitability claims require rigorous validation against actual franchisee tax returns.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation is required to be disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Aprio, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Figures from audited financial statements of LaundroLab, LLC (the franchisor), single entity, no parent/guarantor shown. FY ended Dec 31, 2024 (yr1) and Dec 31, 2023 (yr2), in whole US dollars (not scaled). Total revenue 2024 of $849,295 = franchise licenses $468,666 + real estate and development fees $11,593 + royalties and other related fees $369,036; other_revenue ($380,629) = all non-franchise-license revenue. Balance sheet reconciles: total liabilities $5,064,022 + member's deficit $(2,789,423) = total assets $2,274,599. Statement labeled "Statements of Operations and Comprehensive Loss"; net loss $(854,701). Auditor: Aprio, LLP.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
Score breakdown · what drove the 69 / 100 verdict
- 01MINORExtreme unit growth of 233% YoY suggests either aggressive expansion phase or previous contraction recovery—unsustainable growth rates carry collapse risk
- 02MINORNet profit margin of 22% ($118,677 on $537,787 revenue) is healthy but average revenue figure lacks clarity on whether this includes top/bottom quartile variance
- 03MINORHigh initial investment ($1.03M–$1.87M) with relatively modest average net income ($118,677) yields 9–16 year payback period before accounting for ongoing royalties
- 04MINORRoyalty structure (greater of $500/month floor or 6%) incentivizes revenue recognition games and creates cash flow pressure for lower-performing units
- 05MEDOnly 24 units total is a micro-franchise system with limited operational scale and data reliability for projections
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | North Carolina |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 13 hrs
- On-the-job training
- 13 hrs
- Training location
- Charlotte, North Carolina
- Ongoing training
- Required
- Time to open
- 12 mo
- From signing to launch
- Franchisor financing
- Offered
- Item 10
- POS system
- LaundryPulse / LaundryPay (POS System leased from designated vendor)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: LaundryPulse / LaundryPay (POS System leased from designated vendor)
Item 20 · call current owners
Franchisee Contacts
35 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a LaundroLab franchise?
The total investment to open a LaundroLab franchise ranges from $1.0M – $1.9M, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do LaundroLab franchise owners earn?
According to Item 19 of the LaundroLab FDD, the average gross sales per unit is $538K. The median is $562K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns LaundroLab?
LaundroLab is franchised by LaundroLab, LLC. Its parent company is 2ULaundry, Inc.. Source: FDD Item 1, 2025 filing.
What is Item 19 in the LaundroLab FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the LaundroLab FDD and qualifies whose outlets they describe.
What is LaundroLab's franchise failure rate?
Based on SBA 7(a) loan data, LaundroLab has a charge-off rate of 0.0% across 15 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many LaundroLab franchise locations are there?
As of their most recent FDD filing, LaundroLab has 24 total units in the United States, including 22 franchised units and 2 company-owned units. 12 new units were opened in the latest reporting year.
Is LaundroLab a good franchise to buy?
FranchiseVerdict rates LaundroLab as a B-grade franchise with a verdict score of 69 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.