LaundroLab Franchise Cost, Revenue & Review 2026
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. 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: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $1.0M – $1.9M
- 86th pct Cleaning & Ma…
- Avg gross sales
- $538K
- 15th pct Cleaning & Ma…
- Royalty
- N/A
- 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 avg · 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.
- RETURNSAverage unit revenue of $538K/year (median $562K), with an estimated 5% cash-on-cash return (based on EBITDA20 $118,677).
- RISKVerdict A (Strongest tier), verdict score 71/100 (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).
- 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.
- 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 365% 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
- Greater of (i) $500 per month or (ii) 6% of Gross Revenue…
- 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 |
|---|---|
| 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 run 40% below the cleaning & maintenance norm.
Source: FDD 2025 · Item 19
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
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
FDD-reported earnings vs. model
The FDD reports $119K as EBITDA20 $118,677. Our model estimates $59K SLEBITDA from the same revenue using category-average cost assumptions. These numbers differ because EBITDA20 $118,677 deducts different expense categories than our model.
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. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real 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?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
4%
Below the 30–60% attractive-franchise band
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%.
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
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→$1.1M
- 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 192 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% — below the Cleaning & Maintenance average of 9.7%.
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 averages
How LaundroLab Compares
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
- 0.0%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 92%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 12
- 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
- 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.
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.
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)
No litigation is required to be disclosed in Item 3.
Largest disclosed settlement: $49,500
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Aprio, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ 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 71 / 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 |
| 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
FDD download
LaundroLab · FDD (2025) 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 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 A-grade franchise with a verdict score of 71 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
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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.