Laundry Spot Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Laundry Spot is a laundromat franchise operating self-service and full-service laundry facilities. Franchisees run the stores, managing equipment upkeep, wash-and-fold service, and operations.
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]. The 2026 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $1.3M – $2.2M
- 87th pct Cleaning & Ma…
- Avg gross sales
- N/A
- Company-owned only
- Royalty
- 5.0%
- 5th pct Cleaning & Ma…
- Units
- 4
- 12th pct Cleaning & Ma…
- SBA charge-off
- N/A
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 $1.3M – $2.2M including a $60K franchise fee, 5.0% ongoing royalty.
- RETURNSNewly formed franchisor; financial statements cover inception (October 28, 2025) to December 31, 2025. Total Revenue was $0 (no initial franchise fees, royalty fees, or license fees earned). Member contributions of $20,000 fund total assets/equity.
- RISKVerdict C (Average), verdict score 45/100 (higher is better).
- DATAItem 19 reports affiliate-owned historical financials (unaudited P&L for 4 Ohio affiliate locations, 2025) rather than annual gross sales, so unit revenue is not directly comparable. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- The Laundry Spot Franchise LLC
- CEO title
- Chief Executive Officer
- Dan Reese
- 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
- CEO
- Dan Reese
- Headquarters
- OH
- Founded
- 2025
- FDD year
- 2026
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 461% above the typical cleaning & maintenance franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown19 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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.3M – $2.2M
- Bottom third — review vs category
- Liquid capital req'd
- $30K – $75K
- Middle of category vs category
- Franchise fee
- $60K – $60K
- Bottom third — review vs category
- Royalty
- 5.0%
- percentage · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
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 |
What do units actually make?
Source: FDD 2026 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Laundry Spot did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Laundry Spot unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
5%
Below the 30–60% attractive-franchise band
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: 2026 FDD
Financial Performance
Newly formed franchisor; financial statements cover inception (October 28, 2025) to December 31, 2025. Total Revenue was $0 (no initial franchise fees, royalty fees, or license fees earned). Member contributions of $20,000 fund total assets/equity.
Company-owned outlets only - not franchisee performance
- Item 19 type
- affiliate-owned historical financials (unaudited P&L for 4 Ohio affiliate locations, 2025)
- Sample size
- 4
- vs category median 32 · small
- Range (low → high)
- $484K→$1.0M
- Cohort dispersion (min → max)
- Transparency tier
- limited
- Categorical assessment of disclosure depth
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 9 / 10
- vs category median 4 / 10 · above
Compared against 192 Cleaning & Maintenance brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 6.0% — below the Cleaning & Maintenance average of 9.7%.
Disclosure
Item 19 reports affiliate-owned historical financials (unaudited P&L for 4 Ohio affiliate locations, 2025) rather than annual gross sales, so unit revenue is not directly comparable.
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 Laundry Spot Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 4
- Opened
- 0
- 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
- 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 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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)
No litigation required to be disclosed in Item 3.
Largest disclosed settlement: $360,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Divine, Blalock, Martin & Sellari, LLC
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 45 / 100 verdict
- 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
- 03MINORUnclear unit economics — 4 units is insufficient sample size; franchisees may experience vastly different results
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 50 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Arbitration location | Hamilton, Ohio |
| Jury trial waiver | Yes |
| Governing law | OH |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 26 hrs
- On-the-job training
- 40 hrs
- Training location
- Hamilton, Ohio or location designated by franchisor (may be virtual)
- Ongoing training
- Required
- Site selection
- franchisor must approve site selected by franchisee
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
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?
Laundry Spot does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the Laundry Spot 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 Laundry Spot FDD and qualifies whose outlets they describe.
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 verdict score of 45 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
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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.