Why Partnering with a Commercial Laundry Equipment Distributor Beats Buying Into a Laundromat Franchise

Investing in a laundromat is a smart, recession-resistant move—but how you start your business can make all the difference in long-term profitability. Many new investors gravitate toward well-known laundromat franchises, assuming they'll provide the most support. But here's the truth: working with a local commercial laundry equipment distributor often offers better pricing, more flexibility, and just as much—if not more—support throughout the process.

Let’s dive into why building your laundromat with a distributor from scratch is a smarter play than buying into a franchise.

1. Lower Equipment Costs

Franchises include markups on equipment—sometimes up to 10% higher than what a distributor would charge. Distributors buy directly from manufacturers and pass those savings on to investors.

This means you’re not only getting top-tier washers and dryers—you’re getting more value per dollar, with the freedom to choose the exact mix of machines that best suits your market.

2. No Royalty Fees—Keep 100% of Your Profits

One of the biggest drawbacks of franchising? Royalty fees, which usually range from 4% to 12% of your gross revenue. That’s a big cut over time, especially in a business with larger utility and labor costs to operate.

With a distributor, you own the business outright. There are no ongoing royalty payments, meaning more money stays in your pocket—where it belongs.

Happy laundromat investors choose local distributors, rather than expensive franchise models.

3. Distributors Also Provide More Accurate Location Analysis

Worried about finding the right location without a franchise's support? Don’t be. Distributors offer detailed, data-backed location analysis, often leveraging local demographic data, traffic counts, nearby competitors, and neighborhood trends.

In many cases, their local knowledge far exceeds that of a corporate franchise team analyzing the area from thousands of miles away.

4. Financing Options—Just Like Franchises (Sometimes Better)

A big draw for franchises is that they help arrange financing. But distributors can offer that too—sometimes with more flexibility. Many distributors partner with laundry-specific lenders who understand the unique economics of laundromats and can provide competitive financing packages.

Some even offer in-house financing or equipment leasing options that reduce upfront costs and help investors get started faster.

5. Lower Construction Costs Through Local Contractor Networks

Franchise systems may require you to use their approved (and often more expensive) contractors. Distributors, however, tap into trusted local networks of contractors, architects, and permit expediters—often resulting in significantly lower buildout costs and faster turnaround times.

They know who gets the job done right, and they’ve built relationships over time that work in your favor.

6. Face-to-Face Support Throughout the Entire Project

Here’s where distributors really shine: personal, hands-on support. Unlike some franchise reps who only check in periodically, local distributors are available to meet in person, walk sites with you, and help guide decisions throughout the project.

From zoning and permitting to equipment install and soft opening, they’re on the ground with you—not just a voice on the phone.

7. Full Support, Without the Restrictions

Yes, franchises come with operational systems—but they also come with rules. From branding to pricing to vendor selection, you're often locked into decisions that may not work best for your specific market.

Distributors can offer just as much guidance—everything from marketing plans to store layouts—but without limiting your creativity or independence.

8. There Are No Well-Known Laundromat Franchises

Until well-known brands like Tide begin offering franchises for laundromats, there is little to no value in the laundromat brands themselves. With laundromat franchise models, new investors will find that they will be paying for a brand that is often not recognizable to customers.

New investors can just as easily establish their own brand with the help of local distributors and skip paying a franchise for use of a brand with no inherent value.

Final Thoughts: Build Smarter, Not Just Bigger

While franchising might sound appealing, it often comes with extra costs and less control. By working with a commercial laundry equipment distributor, you're getting:

Lower equipment and construction costs

Zero royalty fees

Local market expertise

Financing support

Full guidance from idea to grand opening

Total ownership and freedom

If you're serious about maximizing your ROI and building a business that works for your lifestyle—not just a brand’s bottom line—partnering with a distributor is the better move.