Speed Queen
Bottom line
- Total investment $1.2M – $2.0M including a $50K franchise fee, 4.0% ongoing royalty.
- Average unit revenue of $570K/year (median $544K). Estimated payback in 6.0 years.
- Rated MODERATE with a risk score of 59/100. SBA loan default rate of 0.0% across 4 loans (below the industry average).
- System growing at 55.6% CAGR over 3 years with 29 total units — strong expansion trajectory.
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 SPEED QUEEN 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 SPEED QUEEN units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$799K
on $4.0M purchase
Total debt
$3.2M
SBA $2.0M + senior + seller note
Overview
About
Speed Queen franchisees operate commercial laundry facilities (coin-op and card-pay models) serving multi-unit residential, hospitality, and institutional clients. Day-to-day operations include machine maintenance, customer service, payment processing, inventory management, and facility upkeep to maximize machine utilization and revenue per location.
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 · 13 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
Speed Queen presents moderate-to-cautious risk: unprotected territory, small system size, and going concern status create execution uncertainty, though no litigation and positive unit growth offer modest offsets.
Score breakdown · what drove the 59 / 100 rating
- 01MINORNo territory protection creates direct competition risk and customer cannibalization within franchise system
- 02HIGHGoing Concern status is False, indicating potential financial/operational instability at corporate level
- 03MINORHigh initial investment ($1.2M-$2M) against median net income of $264K yields 4.5-7.6 year payback with no margin for error
- 04MINORModest unit growth of 16.7% YoY is healthy but insufficient scale (only 29 units) limits brand recognition and purchasing power
- 05MINOR4% royalty on $570K average revenue = $22,800/year; combined with $49.5K franchise fee suggests ongoing revenue pressure on corporate support
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
23 numbers
One-time purchase · CSV download · Validation questions included
FDD download
SPEED QUEEN · FDD (2025) PDF