How to Start a Laundromat Business in California: Permits & Best Locations
Starting a laundromat in California can involve a wide range of costs, with typical ROI ranging from 20-35% Starting a laundromat in California requires careful planning around costs, permits, and location to ensure long-term success.
Explore laundromats for sale, from self-service coin-operated setups to full-service models with wash-and-fold options. This latest guide breaks down everything you need to know, from how much does it cost to start a laundromat to navigating licenses and permits to open a laundromat, and pinpointing the best locations for laundromats in California.
The initial cost to start a laundromat can range from $50,000 to over $500,000, depending on factors such as location, building size, and equipment. Key expenses typically include purchasing or leasing the property, acquiring commercial washers and dryers, making necessary renovations, and covering initial operating costs.
Financing options like SBA loans or equipment leasing can ease the burden. Many owners recoup costs in 2–3 years with strong profit margins. For tailored advice, explore BizBen's listings to compare buying vs. building.
In 2025, hybrids will win. Start self-service and phase in full options. Self-service suits passive investors, while full-service excels in affluent areas.
Explore laundromats for sale, from self-service coin-operated setups to full-service models with wash-and-fold options. This latest guide breaks down everything you need to know, from how much does it cost to start a laundromat to navigating licenses and permits to open a laundromat, and pinpointing the best locations for laundromats in California.
Why Start a Laundromat Business in California?
California's diverse economy and lifestyle make it an ideal spot for laundromat ownership. High Demand from Renters and Urban Dwellers: Nearly half of Californians rent homes without in-unit laundry, driving consistent foot traffic. In cities like Los Angeles and San Francisco, apartment-heavy neighborhoods create a built-in customer base.- Recession-Proof and Passive Income Potential: Laundromats generate steady revenue with minimal daily oversight once established. They're essential services that thrive even in economic downturns.
- Growth in Eco-Friendly and Tech Trends: With California's push for sustainability, incorporating energy-efficient machines or app-based payments can attract eco-conscious customers and qualify for green incentives.
- Scalability for Entrepreneurs: Start small and expand to multiple locations or add services like dry cleaning. The state's entrepreneurial spirit, bolstered by resources like BizBen, makes scaling easier.
How Much Does It Cost To Start a Laundromat?
The initial cost to start a laundromat can range from $50,000 to over $500,000, depending on factors such as location, building size, and equipment. Key expenses typically include purchasing or leasing the property, acquiring commercial washers and dryers, making necessary renovations, and covering initial operating costs.
| Category | Estimated Cost | Notes |
| Lease or Purchase | Varies by location (lease) or purchase | Higher in prime CA spots like LA or SF; aim for 3–5 year leases with renewal options. |
| Renovations & Build-Out | Varies | Includes plumbing, electrical upgrades, flooring, and ADA-compliant accessibility. |
| Equipment (Washers/Dryers) | Varies | 20–40 commercial machines; opt for energy-efficient models to cut utility bills. |
| Permits, Licenses & Legal | Varies | Covers business setup; varies by city. |
| Marketing & Signage | Varies | Digital ads, grand opening events, and exterior branding. |
| Initial Inventory & Misc. | Varies | Detergents, vending machines, security systems. |
| Working Capital (3 Months) | Varies | Covers rent, utilities, and payroll if staffed. |
Licenses & Permits Required in California
Navigating licenses and permits to open a laundromat in California is straightforward but location-specific. Always check with your city or county office. Non-compliance can lead to fines, so start early. Core requirements include:- Business License: Issued by your city/county. Registers your operation and ensures zoning compliance (laundromats typically fall under commercial retail).
- Seller's Permit: Free from the California Department of Tax and Fee Administration (CDTFA) for collecting sales tax on services like wash-and-fold.
- Health Permit: Required in counties like Los Angeles for sanitary standards, with inspections for water quality and waste disposal.
- Building/Zoning Permits: Required for renovations; confirm your site allows high-water-use businesses.
- EIN & Insurance: Free federal tax ID; commercial liability insurance is essential.
Choosing the Best locations for laundromats
The best locations for laundromats in California prioritize high renter density (over 50%), foot traffic, and limited competition. Aim for sites near apartments, colleges, or transit hubs. In 2025, focus on areas with growing populations and immigrant communities, where usage is above average. Top cities based on market data:- Los Angeles: Over 1,300 laundromats, but huge demand in renter-heavy neighborhoods like Koreatown or Echo Park. Ideal for urban density.
- San Francisco: Nearly 500 facilities; target Mission District or near tech hubs for young professionals. High demand supports premium services.
- San Diego: Over 270 spots; beachside suburbs like Pacific Beach suit tourists and military bases. The growing rental market boosts year-round traffic.
- Berkeley: College town gem near UC Berkeley; student discounts and extended hours can yield high annual usage.
Profitable Laundromats for Sale in California
Explore turnkey coin laundry and self-service laundromats for sale with established customer bases, high traffic locations, and strong revenue potential. Whether you’re a first-time investor or experienced entrepreneur, discover California laundromat opportunities that offer long-term growth, passive income potential, and turnkey operations ready for immediate ownership.Service vs. Full-Service: Which Model Works Best?
Choosing the right operating model is one of the most critical decisions when you start a laundromat in California. The two primary options, self-service and full-service, each come with distinct advantages, challenges, and revenue potential. In 2025, California’s diverse market supports both, but your choice depends on location, budget, target customers, and desired involvement level.| Model | Pros | Cons | Best For CA |
| Self-Service | Lower startup; passive (minimal staff); affordable for customers. Full control over operations. | Time-intensive for customers; vandalism risks; lower per-load revenue. | Budget starters in high-density LA or SD; add vending for extras. |
| Full-Service (Wash & Fold) | Higher earnings, convenience draws busy pros; loyalty via apps. | Higher costs (startup, staffing); more management. | Upscale SF or Berkeley; pair with delivery for revenue boost. |
Final Steps & Resources
BizBen accelerates your growth by connecting you coin laundry and laundromat businesses for sale in California, saving time and reducing risks compared to starting from scratch. Our expert brokers provide valuation insights, negotiation support, and due diligence to scale your portfolio.FAQs
- Is starting a laundromat in California profitable in 2025?
- Do I need a special license to open a laundromat in California?
- Can I buy an existing laundromat instead of building one?
- What’s the difference between self-service and full-service laundromats?
- Which California cities are best for a new laundromat?
- How long does it take to get permits for a laundromat in California?
- Do laundromats need to comply with water usage regulations in California?
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