Laundry Spot
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). Estimated payback in 5.7 years.
- Rated CAUTION with a risk score of 70/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
- 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
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 Laundry Spot unit return on the cash you put in?
Unlevered ROIC · per unit
5%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Laundry Spot units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$914K
on $4.6M purchase
Total debt
$3.7M
SBA $2.3M + senior + seller note
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.
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 · 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 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
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.
Score breakdown · what drove the 70 / 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
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
17 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Laundry Spot · FDD (2026) PDF