LaundroLabFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A LaundroLab franchise requires a total initial investment of $1.0M – $1.9M, including a $50K franchise fee. Per the 2026 FDD, average unit revenue was $538K[2]. SBA 7(a) loans show a 0.0% charge-off rate across 15 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $1.0M – $1.9M
- 82nd pct Cleaning & Ma…
- Avg gross sales
- $538K
- 20th pct Cleaning & Ma…
- Royalty
- N/A
- Units
- 24
- 31st pct Cleaning & Ma…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Cleaning & Maintenance · color = vs category peers
Green = >15% above Cleaning & Maintenance avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
At 0.4x revenue per dollar invested, this system underperforms the typical 1.5-2.5x range.
Only 0.0% of 15 SBA loans charged off, well below the 16% franchise average.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $1.0M – $1.9M including a $50K franchise fee.
- Average unit revenue of $538K/year (median $562K), with an estimated 8% cash-on-cash return (based on EBITDA).
- Verdict A (Top Quintile) with a risk score of 51/100. SBA loan charge-off rate of 0.0% across 15 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- LaundroLab, LLC
- Parent company
- 2ULaundry, Inc.
- Incorporated in
- NC
- HQ
- 520 Elliot St., Charlotte, NC 28202
- Auditor
- Aprio, LLP
- Audited financials
- Franchisor revenue
- $207K
- vs $849K prior year
- ⚠ Going-concern note
- Disclosed in FDD 2026
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
LaundroLab franchisees operate self-service or attended laundromat facilities, managing coin/card operations, equipment maintenance, cleaning, and customer service. Day-to-day operations include monitoring machines, restocking supplies, conducting facility upkeep, and handling customer complaints or technical issues.
- CEO
- Jason Lepes
- Headquarters
- NC
- Founded
- 2020
- FDD year
- 2026
- States available
- 11
FDD Item 7 · 2026 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 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$59K
11.0% margin
Unlevered ROIC
4%
EBITDA / total invested capital
Payback
26.5 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.0M – $1.9M
- Below avg, review vs category
- Liquid capital req'd
- $75K – $150K
- Below avg, review vs category
- Franchise fee
- $50K – $50K
- Near category avg vs category
- Royalty
- Greater of $500 per month or 6% of Gross Revenues
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
- Payback period
- 12.2 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $300 |
| Transfer fee | $15K |
| Renewal fee | $5K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $538K
- Per unit, per year
- Median gross sales
- $562K
- Avg ebitda
- $119K
- Reported as EBITDA in FDD Item 19
- Cash-on-cash
- 8.2%
- Based on EBITDA / investment midpoint
- Item 19 type
- Average of all businesses
- Sample size
- 10 units
- vs category median 31 · small
- Range (low → high)
- $193K→$1.1M
- Cohort dispersion (min → max)
- Quartile band
- $395K→$681K
- Bottom 25% → top 25%
- Transparency
- 10 / 5
- vs category median 4 / 5 · above
Compared against 204 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.
vs Cleaning & Maintenance averages
How LaundroLab Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 24
- Opened
- 12
- Last reporting year
- Closed
- 0
- Terminated
- 12
- Franchisor ended the franchise (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 92%
- vs corporate-owned
- Net growth (yr3)
- Outlier (see FDD)
- Likely small-sample artifact
3-year detail · Item 20
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 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).
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%
- 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
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into LaundroLab's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 7 lenders with concentration factor
- Per-state charge-off rates across 5 states
- Startup risk premium and job creation velocity
- 4-year lending trend
Instant access. No subscription.
With a 0.0% charge-off rate across 15 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $49,500
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Aprio, LLP⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 51 / 100 rating
- 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
- 06MEDNo Item 19 financial performance representation disclosed in provided data—critical missing validation
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Territory type | Drive-time based |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | North Carolina |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 13 hrs
- On-the-job training
- 13 hrs
- Training location
- On-site and corporate
- Franchisor financing
- Offered
- Item 10
- POS system
- LaundryPulse, LaundryPay, Parlevel, Screen Cloud, Acronis, CleanCloud, and QuickBooks Online
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: LaundryPulse, LaundryPay, Parlevel, Screen Cloud, Acronis, CleanCloud, and QuickBooks Online
Item 20 · call current owners
Franchisee Contacts
35 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
LaundroLab · FDD (2026) PDF
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.
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 0 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 A-grade franchise with a risk score of 51 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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.
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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.