Speed Queen Laundry Franchise Cost, Profit & Failure Rate 2024

Speed Queen Laundry Franchise

Speed Queen Laundry is famous for its dry-cleaning services. If you’re interested in expanding your business portfolio with a lucrative franchise, Speed Queen Laundry could be an excellent option for you.

It ranks among the best dry cleaning franchises to own.

For a detailed look at Speed Queen Laundry Franchise’s profitability, fee, cost, eligibility, and more, continue reading this comprehensive article. Let’s dive in!

About Speed Queen Laundry

Training Of Speed Queen Laundry

Speed Queen Laundry was established in 1908 by Joe Barlow and John Seelig and is now a part of the Alliance Laundry System.

Initially focused on manufacturing washers and dryers, they later expanded to offer wash, dry, and fold services, aiming for fast and professional results.

With over 16 units and growing, Speed Queen has developed a chain of laundromats known as “A Better Place to Do Your Laundry.” Their flexible business model doesn’t require experienced candidates, and investment costs are relatively low.

In addition, franchisees benefit from initial training and support to boost their business growth. Financial assistance and veteran discounts are also available for eligible individuals.

Speed Queen Laundry Franchise Model

Cost Or FeesAmount
Initial Investment$490,000 – $1,275,000
Franchise Fee$30,000 to $60,000
Royalty Fee4.0%
Estimated Outlet16

Training Of Speed Queen Laundry

Speed Queen Laundry offers a 40-hour classroom training program for new franchisees. This program includes guidance on day-to-day management and skill enhancement.

Unfortunately, no information is available about additional or periodic training, and details related to training fees are not disclosed.

Term & Renewal of the Agreement

Speed Queen Laundry Franchise Revenue & Profit

The Speed Queen Laundry franchise agreement lasts 10 years initially.

After this term, franchisees can renew for 5 years, provided they meet all conditions and maintain good standing with satisfactory revenue.

For more details about renewal and terms, you may refer to the Franchise Disclosure Document.

Speed Queen Laundry Franchise Revenue & Profit

Annual Turnover (average)$142,857
Average RevenueUp to $300,000
Profit (10% – 20%)$14,285 to $60,000

Speed Queen Laundry’s financial performance could be similar to that of an average laundry business.

While the exact figures aren’t provided, an idea of the potential numbers can be drawn from general laundromat industry statistics. This would mean that the annual turnover might be around $142,857, with average revenue up to $300,000.

Profits for Speed Queen Laundry could fall in a range similar to 10% to 20% of the revenue, translating to $14,285 to $60,000, with the average being $45,000. These figures are not exact but provide a likely estimate based on typical laundry business performance.

Although specific figures have not been shared, the company’s website suggests that franchise owners can anticipate an average return on investment of 28%-41%.

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%300000.00
Franchise Royalty Fees5.31%(15937.50)
Cost of Goods Sold (COGS)26.56%(79687.50)
Labor (Variable)13.81%(41437.50)
Total (Expenses)85.00%(255000.00)
Net Profit15.00%45000.00

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.

Payback Period Of Speed Queen Laundry Franchise

With an average investment of $882,500 and a yearly profit of $45,000, we can calculate the payback period of the Speed Queen Laundry.

So, to find out how long it will take to earn back the initial investment:

Payback Period = Investment / Yearly Profit = $882,500/ $45,000= 19.6 years

Based on these figures, it will take approximately 19-20 years to pay back the initial investment for Speed Queen Laundry. This time period could be longer or shorter depending on your sales, revenue, and profit figures.

Failure Rate Of Speed Queen Laundry

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change

For the Franchised outlets:

  • In 2020, the growth rate was (2)/0×100≈ can’t be divided by 0
  • In 2021, the growth rate was (3)/2×100≈150%
  • In 2022, the growth rate was (4)/5×100≈80%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change

For the Company-Owned outlets:

  • In 2020, the failure rate was (0)/14×100≈0.00%
  • In 2021, the failure rate was (0)/14×100≈0.00%
  • In 2022, the growth rate was (1)/14×100≈7.14%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change

For Total outlets:

  • In 2020, the growth rate was (2)/14×100≈14.28%
  • In 2021, the growth rate was (3)/16×100≈18.75%
  • In 2022, the growth rate was (5)/19×100≈26.31%

According to the above-mentioned data, we can see that the franchised outlets for Speed Queen Laundry grew from 2020 to 2022, showing a growth rate between 150% and 80%.

On the other hand, for company-owned outlets, the growth rate of Speed Queen Laundry was lying in the range of 7.14% for the year 2022.

Overall, when we combine the data of franchise and company-owned outlets, we can see that the Speed Queen Laundry franchise has expanded in the years 2020-2022, showing a total growth rate between 14.28% and 26.31%

Speed Queen Laundry Financial Assistance

Speed Queen Laundry offers financing options to help franchisees establish their business.

However, franchisees must provide an average down payment of 20% equity, which could go as low as 10% under certain conditions. More details about financial assistance can be found in the Franchise Disclosure Document.

Opportunities abound for entrepreneurs in dry cleaning franchising, including brands like OXXO Care Cleaners, CD One Price Cleaner, Tide Cleaner Franchise, Comet Cleaners, and Pressed 4-Time Franchise.

Speed Queen Laundry Comparison

CompanySpeed Queen Laundry Martinizing
Founded In19081949
Initial Investment$490,000 – $1,275,000.$60,000-$385,000
Total Outlet16450
Annual Revenue$4.6 Million$3.0 Million

Frequently Asked Question

How many Speed Queen Laundry franchises are there?

Speed Queen Laundry has more than 16 units across the U.S.

Does the Speed Queen Laundry franchise offer finance?

Yes, Speed Queen Laundry offers financial assistance to franchisees. 

Where is Speed Queen Laundry headquartered?

The headquarters of Speed Queen Laundry is located in Ripon, Wisconsin, USA.

Is Speed Queen Laundry a franchise?

Yes, Speed Queen Laundry is a franchise organization that offers franchise opportunities worldwide.

How much does the Speed Queen Laundry Franchise Cost?

To become an owner of the Speed Queen Laundry franchise, investors should expect to spend around $490,000 – $1,275,000 and an additional amount of $30,000 to $60,000 as a franchise fee.

Who founded Speed Queen Laundry?

The company was founded by Joe Barlow and John Seelig in 1908. They started by taking existing machine designs and improving them.

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