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
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 Fees | Amount |
|---|---|
| Initial Investment | $490,000 – $1,275,000 |
| Franchise Fee | $30,000 to $60,000 |
| Liquidity | $300,000 |
| Royalty Fee | 4.0% |
| Estimated Outlet | 16 |
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
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
| Statistic | Value |
|---|---|
| Annual Turnover (average) | $142,857 |
| Average Revenue | Up 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. 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%.
Failure Rate Of Speed Queen Laundry
Franchised Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2020 | 0 | 2 | +2 |
| 2021 | 2 | 5 | +3 |
| 2022 | 5 | 9 | +4 |
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:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2020 | 14 | 14 | 0 |
| 2021 | 14 | 14 | 0 |
| 2022 | 14 | 15 | +1 |
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:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2020 | 14 | 16 | +2 |
| 2021 | 16 | 19 | +3 |
| 2022 | 19 | 24 | +5 |
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.
Speed Queen Laundry Comparison
| Company | Speed Queen Laundry | Martinizing |
|---|---|---|
| Founded In | 1908 | 1949 |
| Initial Investment | $490,000 – $1,275,000. | $60,000-$385,000 |
| Franchise-Fee | $50,000 | $69,500 |
| Liquidity | $300,000 | $100,000 |
| Total Outlet | 16 | 450 |
| 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.
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.