How Much Does It Really Cost to Open a Laundromat? A Breakdown Using Real FDD Data

As attractive as laundromat profit margins are, smart investors know that the true value of any business begins long before the doors open. It begins with understanding the real start-up costs, the ongoing expenses, and the long-term revenue potential. 

Laundromats have long been celebrated for their stability, with 20–35% average profit margins and a remarkable 95% success rate across the United States. They operate in a recession-resistant industry and serve an essential need that never disappears.

But not all laundromats offer the same opportunity. The landscape is filled with outdated, dimly lit, neglected spaces that rely on aging coin-operated machines and provide little emotional connection or customer loyalty. Laundry Luv was created to offer something dramatically different: a modern, welcoming, community-centered experience that elevates what laundry day feels like. And that difference is central to the value of the investment.

Before diving into the cost of owning a Laundry Luv franchise, it’s worth understanding that this is more than an investment in machines. It’s an investment in people, neighborhoods, and a premium guest experience that stands out in an industry that desperately needs a reset.

If you’ve ever thought about opening a laundromat, you’ve probably asked the big question:

“How much does it really cost to get started?”

The internet is full of rough estimates, but today we’re going deeper. Using real-world franchise disclosure data (FDD), we can see exactly which cost categories matter and how much you should expect to invest.

Below is a clear breakdown based on actual Item 7 disclosures, which outline startup costs across categories like buildout, equipment, franchise fees, deposits, and more. Whether you plan on opening an independent store or exploring a franchise, this breakdown helps you understand where the money actually goes.

1. Initial Franchise Fee: $40,000

If you're exploring a franchise route, the first major cost is the franchise fee.
This is paid upfront when you sign your franchise agreement and typically covers:

• Brand rights

• Initial training

• Operational guidance

• System access

The initial franchise fee of $40,000 includes onboarding, training, brand materials, licensing, and support. For veterans, first responders, and their spouses, Laundry Luv reduces that fee by $5,000 as a way of honoring those who serve. 

2. Royalties: 6%

Royalties are set at six percent of gross sales, and Laundry Luv takes a supportive approach to new owners. Marketing contributions include one percent toward the national brand fund and one percent for local marketing efforts, ensuring that each new store opens with a strong presence and continues building awareness in its community.

If you're going independent, these first two categories simply doesn’t apply, but keep reading, because the rest of these costs absolutely do.

3. Rent & Lease Security Deposit: $2,000 – $30,000

Before you open your doors, you’ll need to secure a location.
A laundromat typically requires 2,500–4,500 sq ft, and landlords usually require:

• First month’s rent

• Last month’s rent

• A security deposit (often 1 month)

For many operators, this becomes a surprisingly large upfront cost, especially in competitive real estate markets.

4. Utilities: $1,000 – $3,500

While utilities like water, gas, and electricity are ongoing monthly expenses, there is also an upfront cost to initiate service, install meters, or complete required upgrades.

Given that laundromats are water- and power-heavy businesses, these setup fees are important to budget for.

5. Leasehold Improvements: $375,000 – $900,000

This is often the largest line item in the entire startup budget.
Leasehold improvements cover everything needed to turn an empty box into a functioning laundromat, including:

• Plumbing installation for washers

• Gas lines for dryers

• Electrical upgrades

• Structural changes

• Vented ductwork

• Floor drains and tile

• ADA-compliant restrooms

• Water heaters and boiler systems

Because laundromats require heavy mechanical infrastructure, buildout costs are much higher than typical retail or service businesses.

6. Market Introduction Program: $5,000 – $20,000

This represents your grand-opening marketing and initial promotional push.
It may include:

• Local advertising

• Mailers

• Digital ads

• Launch events

• Branded signage

Even independent stores should budget for a strong opening to build momentum.

7. Furniture, Fixtures & Equipment: $450,000 – $850,000

Your washers and dryers will make up the bulk of your cost.
A complete equipment package includes:

• Washers 

• Dryers

• Folding tables

• Laundry carts

• Seating

• Soap vending machines

Equipment costs vary depending on quantity, machine size mix, and whether financing is used.

8. Computer Systems: $1,000 – $3,000

Most modern laundromats use:

• Point-of-sale (POS) systems

• Card or app-based payment technology

• Remote monitoring

• Surveillance systems

• Wi-Fi networks

Higher-end tech packages cost more but yield better customer data and smoother operations.

9. Insurance: $500 – $2,500

Before you open, you must secure:

• General liability

• Property insurance

• Workers comp (if applicable)

• Business interruption policies

Many landlords require proof of coverage before handing over the keys.

10. Technology Setup: $2,000 – $4,000

Technology setup ranges from $2,000 to $4,000, a small but critically important part of the investment, because Laundry Luv stores are built around modern systems rather than outdated coin-operated equipment. Real-time machine monitoring, app-based payments, automated reporting, and remote management tools give franchise owners both efficiency and control over their operations.This category includes the onboarding and system configuration required for:

• Payment systems

• POS setup

• Software licensing

• Networking

11. Signage: $8,000 – $30,000

Exterior signage is crucial for visibility. This may include:

• Channel letter signs

• Light boxes

• Window wraps

• Wayfinding signs

Costs depend heavily on the size of your storefront and local sign ordinances.

12. Office Expenses: $500 – $1,000

A small but essential budget line covering:

• Office furniture

• Supplies

• Setup costs

13. Inventory: $2,500 – $5,000

For laundromats offering drop-off service, this includes:

• Detergent

• Softener

• Bags

• Cleaning supplies

14. Licenses & Permits: $1,000 – $2,500

Cities may require:

• Occupancy permits

• Health inspections

• Business licenses

• Trade permits

• Water usage approvals

15. Professional Fees: $1,500 – $5,000

You’ll need legal, accounting, and other professional services to review contracts, assist with financial setup, and ensure compliance. These costs are paid as services are billed and typically go to licensed attorneys, accountants, and consulting professionals.

May include:

• Lawyer fees

• Accountant or CPA support

• Document review

• Business formation assistance

16. Travel, Lodging & Meals for Initial Training: $1,500 – $2,000

Attending initial franchise training requires travel and temporary lodging. These costs vary based on distance and length of stay and are paid to airlines, hotels, and restaurants.

May include:

• Airfare or mileage

• Hotel accommodations

• Meals during training days

• Transportation (rideshare, rental car, etc.)

17. Additional Funds for First 3 Months: $75,000 – $100,000

These are the working capital funds needed to operate your laundromat during the early months. Actual amounts vary based on store size, staffing decisions, and local utility rates.

May include:

• Employee payroll

• Utilities (water, gas, electricity)

• Supplies & cleaning products

• Initial marketing

• Unexpected operational costs

So What’s the Total?

Based Laundry Luv’s FDD tables, the estimated initial investment range is:

$967,500 – $1,998,500 to start a full-service laundromat

Opening a laundromat is a major investment, and understanding these costs upfront is the key to building a profitable, sustainable business. With the right location, equipment, and operational strategy, your laundromat can become a stable, recession-resistant source of income for years to come. And if you’re looking for a partner who can guide you through every step—from site selection to grand opening—our Laundry Luv franchise model is built exactly for that. In our next article, we break down why entrepreneurs choose Laundry Luv, what sets our franchise system apart, and how we help owners open faster, operate smarter, and earn more.