Bottom line
- Total investment $1.0M – $1.9M including a $50K franchise fee.
- Average unit revenue of $538K/year (median $562K). Estimated payback in 12.2 years.
- Rated STRONG with a risk score of 49/100. SBA loan default rate of 0.0% across 30 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one LaundroLab unit return on the cash you put in?
Unlevered ROIC · per unit
4%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 LaundroLab units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$430K
on $2.2M purchase
Total debt
$1.7M
SBA $1.1M + senior + seller note
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 18 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
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.
Score breakdown · what drove the 49 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
37 numbers
One-time purchase · CSV download · Validation questions included
FDD download
LaundroLab · FDD (2026) PDF