Laundromat Due Diligence: Laundry Broker Discusses Top Contingencies


Laundromat Expert Due Diligence Check List

Although I am currently known as an expert in the laundromat business, I started in this business in my early twenties as an owner. During my career, I have owned or operated in excess of fifty laundromats: coin, card, token and even ticket laundromats.

I've owned many types of laundromats:  big, small, new, run-down, remodeled, winners and loser stores.  Regardless of the success or size, all of my ownership interests started with an offer to purchase.

Sometimes I relied on forms provided by others on what I should be including as a contingency but as time went on, I developed my own list of out important issues. Not all of these contingencies were needed on each and every offer that I made, but I always reviewed them before making an offer.

Here are some of the contingencies phrases I would review and include, if needed, before making an offer to purchase a laundromat:

1. Seller to provide copies of building permits or certification that all electrical, plumbing and equipment installations were done to code and with the proper building permits.

2. Seller to provide access to buyers and/or their agents during due diligence period for inspections as to the condition, installation and functionality of all plumbing, equipment, electrical, roof, alarm, security cameras, as well as access for agents to inspect for mold and ADA compliance.

3. Seller to aid Buyer in securing a lease with terms acceptable to Buyer.  (I always tried to obtain a lease with a minimum remaining period of 20 years including options, as long as the options were not at“market rate” but with the same terms and conditions as the lease agreement.)

4. Seller to provide all manuals and programming instructions for all equipment installed.

5. Seller to make introduction to employee(s) and/or contract labor person(s) including any contract agreements between the parties.

6. Seller to identify the alarm company and name of representative as well as details of alarm settings.

7. Seller to provide all keys for all locks to buyers and notification of all personnel that possess keys (store, change machine, washing machines, dryers, etc.)

8. Seller to identify vending machine (water, soda, candy and other vending items) and contact information for any non-owned item.

9. Seller to warrant that all water service for the laundromat account is provided to any other business.

Larry LarsenAbout The Author: Larry Larsen is a premier expert in the laundromat industry in Southern California. I specialize in laundry consulting, brokerage, store design, equipment sales, and new store construction. Call me direct today at 714-390-9969 for more information and assistance with a Southern California laundry purchase or sale.

Categories: BizBen Blog Contributor, Buying A Business, Deal And Escrow Issues, Due Diligence Issues, How To Buy A Business







  Helpful Resources To Assist In Selling And Buying California Businesses
Chuck Post: Laundry Buyer Representation, Consulting, Due Diligence

32 years experience in the laundry industry, specializing in assisting laundry buyers with buying or starting up, re-tooling, laundries in Southern CA. Laundry buyer representation, consulting, due-diligence, lease negotiations, laundry valuations. Call 619-227-5711 (Cell).

Mike Hurrell, Broker: Laundry Specialist - Southern California

Providencia Properties Inc in association with Golden State Laundry Systems is a full service Coin Laundry Real Estate Broker. At GSLS you will receive personalized attention from our professional staff of coin laundry experts. To sell or buy a Southern CA laundromat call Mike at 310-223-2240 X209.

Steve Erlinger: Laundry Broker, Consultant - Southern California

I specialize in the laundry industry broker and consultant in Southern California. I assist buyers navigate the many facets of finding, evaluating, and operating a laundry business. I also help current laundry owners find additional stores, sell, evaluate an existing laundromat. Call 949-500-5893.

Larry Larsen: Laundry Consulting, Brokerage, Insurance

I have over forty years of experience in the sales, ownership, management, and construction of coin laundries. He is a licensed broker active in the sale of coin laundries, a licensed insurance agent specializing in coin laundry insurance. Phone me at 714-630-9274 or 714-630-Wash.

Brad Steinberg, Business Broker: Laundromat Specialist

PWS is the leading laundromat broker in California. Since 1968 PWS has brokered over 2,500 laundromat sales. With over 90 employees dedicated to the coin laundry industry, PWS has 18 licensed agents, a 3 person in-house finance department, 10 service technicians and a 20 person parts department.

Peter Siegel, MBA: Business Purchase Financing Solutions

Niche business purchase financing advisory and loan placement services with SBA and Non-SBA Financing, Retirement Fund Rollover Solutions, Combo Financing Packages. To get professionally pre-qualified or more information on the ProBuy/ProSell Programs: 925-785-3118.

Randall Barondess CBB, Business Brokerage Services - Central Coast

Experts at: Preparing Businesses For Sale, No-Cost Valuations and Lease Modifications. MaxOne Business, a REMAX ONE Company prepares small, mid-sized and large businesses for sale by confidentially packaging the business and providing guidance throughout the sales process.

Peter Siegel MBA, BizBen Founder, ProBuy, ProSell, ProIntermediary Programs

Founder Of BizBen.com (since 1994). I am the Lead Advisor for the ProSell, ProBuy, & ProIntermediary Programs. I consult daily with buyers, sellers, and brokers daily about buying and selling California small to mid-sized businesses. Call 925-785-3118.


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When Buying A Laundry Why Buyers Should Have An Exit Strategy When Buying

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Larry Larsen Laundromat Broker
Steve Erlinger Laundromat Broker
Golden State Laundry System Laundry Business Brokers
Chuck Post Laundromat Industry Expert
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