Laundry SpotFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Laundry Spot franchise requires a total initial investment of $1.3M – $2.2M, including a $60K franchise fee and an ongoing 5.0% royalty[2]. Per the 2026 FDD, average unit revenue was $761K[2]. Verdict grade: C. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $1.3M – $2.2M
- 84th pct Cleaning & Ma…
- Avg gross sales
- $761K
- 29th pct Cleaning & Ma…
- Royalty
- 5.0%
- 6th pct Cleaning & Ma…
- Units
- 4
- 13th pct Cleaning & Ma…
- SBA default
- N/A
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.
Started franchising in 2025. Newer systems carry more uncertainty but may offer better territories.
18% cash-on-cash return (based on P&L Bottom Line). Within the 15-30% range most franchise investors consider acceptable.
Bottom line
- Total investment $1.3M – $2.2M including a $60K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $761K/year (median $768K), with an estimated 18% cash-on-cash return (based on P&L Bottom Line).
- Verdict C (Average) with a risk score of 68/100.
- Emerging franchise: only 1 year of franchising with 4 units. Early-stage systems carry higher risk but may offer better territory availability.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- The Laundry Spot Franchise LLC
- Incorporated in
- OH
- HQ
- 1875 S. Erie Blvd., Hamilton, OH 45011
- Auditor
- Divine, Blalock, Martin & Sellari, LLC
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
Affiliated brands
- Oreo Team
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Franchisees operate coin-operated and/or full-service laundromat facilities, managing equipment maintenance, customer service, facility cleaning, and cash handling. Day-to-day operations involve monitoring machine functionality, restocking supplies, ensuring facility security, processing transactions, and handling customer complaints in a self-service or attended-service model.
- CEO
- Dan Reese
- Headquarters
- OH
- Founded
- 2025
- FDD year
- 2026
- States available
- 1
FDD Item 7 · 2026 filing · 19 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $60K | $60K | |
| Rent - 3 Months | $12K | $24K | |
| Utility and Security Deposits | $6K | $12K | |
| Leasehold Improvements | $400K | $750K | |
| Grand Opening Marketing Program | $10K | $20K | |
| Equipment Package | $700K | $1.1M | |
| Opening Inventory | $15K | $25K | |
| Professional Fees | $2K | $3K | |
| Signage | $10K | $25K | |
| Insurance | $2K | $5K | |
| Business Licenses and Permits | $250 | $2K | |
| Travel for Initial Training | $1K | $3K | |
| Computer System | $6K | $7K | |
| Security System | $15K | $25K | |
| Uniforms | $100 | $250 | |
| Tap and Impact Fees | $0 | $40K | |
| Vehicle and Wrap | $0 | $15K | |
| Office Supplies | $250 | $500 | |
| Additional Funds (3 months) | $30K | $75K | |
| Total initial investment | $1.3M | $2.2M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
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
$99K
13.0% margin
Unlevered ROIC
5%
EBITDA / total invested capital
Payback
18.3 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.3M – $2.2M
- Below avg, review vs category
- Liquid capital req'd
- $30K – $75K
- Near category avg vs category
- Franchise fee
- $60K – $60K
- Near category avg vs category
- Royalty
- 5.0%
- Gross Sales · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
- Payback period
- 5.7 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $750 |
| Transfer fee | $10K |
| Renewal fee | $5K |
| Inventory (initial) | $15K – $25K |
| Total fee load | 6.0% of rev |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $761K
- Per unit, per year
- Median gross sales
- $768K
- Avg p&l bottom line
- $309K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 17.6%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- Actual
- Sample size
- 4 units
- vs category median 31 · small
- Range (low → high)
- $484K→$1.0M
- Cohort dispersion (min → max)
- Transparency tier
- limited
- Categorical assessment of disclosure depth
- 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 Laundry Spot Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 4
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 2
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 10 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
- Maryland
- Michigan
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 2 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 2
- Loan volume
- N/A
- Amount data pending
- Median loan
- N/A
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 0
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Laundry Spot presents meaningful risk due to going concern status, minimal system scale (4 units), unverified financial claims, and extended break-even timelines that expose franchisees to prolonged capital exposure.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $360,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Divine, Blalock, Martin & Sellari, LLC
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 68 / 100 rating
- 01HIGHGoing Concern issue — franchisor may have financial instability affecting support and viability
- 02MINOROnly 4 units systemwide — extremely small franchise system with unknown/likely stagnant growth trajectory
- 03MINORHigh investment-to-net-income ratio — $1.27M–$2.24M investment against $308K avg net income = 4.1–7.3 year payback (high risk)
- 04MEDNo Item 19 financial data disclosed — cannot verify if $761K revenue and $308K net income are accurate or representative
- 05MINORUnclear unit economics — 4 units is insufficient sample size; franchisees may experience vastly different results
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 | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Boundary |
| Protected territory | Yes |
| Online sales rightsℹ | 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 |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Ohio |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 26 hrs
- On-the-job training
- 40 hrs
- Training location
- On-site and corporate
- Site selection
- franchisee
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
17 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Laundry Spot · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Laundry Spot franchise?
The total investment to open a Laundry Spot franchise ranges from $1.3M – $2.2M, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Laundry Spot franchise owners earn?
According to Item 19 of the Laundry Spot FDD, the average gross sales per unit is $761K. The median is $768K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Laundry Spot's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Laundry Spot (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Laundry Spot franchise locations are there?
As of their most recent FDD filing, Laundry Spot has 4 total units in the United States, including 0 franchised units and 4 company-owned units.
Is Laundry Spot a good franchise to buy?
FranchiseVerdict rates Laundry Spot as a C-grade franchise with a risk score of 68 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.