This month’s feature is an investment model geared for that business savvy empire builder looking for a semi absentee model that can be run with very few employees. Your business partner is franchise start up pro Dennis Mulgannon – who successfully launched Home Care Assistance, Junk King and The Flying Locksmith into the the national franchise brands that they are today. This is a brand that is not sexy but can cash flow and scale quickly. It’s a low labor model that makes it a breeze to run.
The Current Laundromat Industry
Primarily made up of Mom and Pop operators who are taken advantage of by the washer and dryer Distributors whose sole purpose is to sell equipment to these non-business savvy operators. The industry has had, until now, no business sophistication and massive turnover from bad operator to worse operator.
These naive owners sign long term leases in buildings that are not the right fit for their businesses and over build the location with too much equipment and are saddled in debt. Manufacturers continue to support this structure of over build in too large of a space, and then disappear once the equipment is sold. This expense structure cannot support a net margin to justify the investment.
The WaveMAX Way
Location, location, location is obviously number one. WaveMAX has developed a proprietary approach to discerning the best possible real estate play for our locations. This approach takes into consideration the right demographics and competition, the best store size based on that analysis and the best mix of equipment for the site to maximize the profits.
Green Initiatives:
- Pre-Fab lint traps instead of concrete construction – savings of $5,000 to $10,000
- Drain troughs instead of outside grease traps. Easier to clean and stay clean.
- All required lighting is built with LED lights including vending machines, signage, etc.
- Insulated walls and drop ceilings. This saves dramatically on heating/ cooling bills.
- Commercial grade Westinghouse fans creating greater air flow and reducing utility cost
- 8-millimeter safety/solar film on all windows which reduces 99% of the ultraviolet light
- All unwanted clothing donated to Goodwill.
Partnership with Electrolux
Vending relationships for equipment utilizing a special feature in the washers which weighs the clothes and then determines the use of the precise amount of water needed to wash the clothes. Most machines use the same amount of water, regardless of the load size. As the clothes dry, Eco Power determines the “dryness” of the clothes thereby reducing the amount of gas utilized as the load moves through it drying cycle.
Who are your customers?
What Does the WaveMAX Laundromat Customer Want?
- Cleanliness is always #1,
- Safety (women want to feel safe)
- Friendly, helpful staff
- Convenience (good parking, etc.)
- Speed in and out.
- Working equipment (this is in line with cleanliness)
- Hot dryers (equipment quality)
- Keeping up the appearance of the store is critical.
What’s the Investment?
Each location could be $200K to $400K depending on size and city. That includes your $49,950 franchise fee. Second and third and subsequent units are discounted. WaveMAX is currently looking for Area Developers who will pay a minimum development fee of $225K for the rights to a 5MM population market.