Isn't a 26–27% margin good enough?

A margin answers "how much of each revenue dollar survives"; a return answers "how much each invested dollar earns per year". The median store keeps about US$90K against an all-in cost of US$700K–1M — roughly 9–13% before annualised retooling and the owner's time. Respectable, and not 35%. Telling the two rates apart is the first line of defence against all small-business marketing.

Why is the "95% five-year success rate" not credible?

Because it has no denominator and no method: whether it counts registered businesses, tax-filing stores or association members is unknowable. It is also inconsistent with observable facts — the industry's store count has been flat at roughly 17,000 for years; if new stores truly survived five years at 95%, the count would be compounding with openings. A high number without a method is treated as marketing by default.

Why could the UAE laundromat entry stand, then?

Different basis: the UAE entry uses one vendor's complete model, labelled as a vendor model with its contradictions published, and Dubai's demand structure has official statistical support. This entry faced an unsourced industry myth. Both print their evidence grades on their faces — that is this site's method.

Opportunity rank #17 (cash-flow board) · United States

US laundromats, taken apart: "20–35% returns" confuses a margin with a return

Our take: Below the bar

26–27% US laundromat median net operating margin (CLA survey) · Operator estimate · Data as of: 2024-12-31

Composite-board score: 4.0 · Where it is strong: Net cash flow, Tax friendliness · methodology

Data updated: 2026-11-08

This is another of this site's take-apart entries. US laundromats are crowned the small-business cash cow across broker and internet content, and two numbers circulate widest — "20–35% ROI" and a "95% five-year success rate". This site traced both: neither could be found in any Coin Laundry Association (CLA) primary document with a stated methodology, and neither is carried. What does exist is the CLA's 2024 Laundry Industry Survey (operator self-reported): the median store is about 2,740 sq ft with 62 machines, median revenue about US$335,000 a year, and a median net operating margin of about 26–27% (roughly US$85–95K). Divide that profit by a realistic all-in cost (acquisition plus retooling, typically high-six to seven figures) and the unlevered yield is mid-single to low-double digits — a decent business, separated from the marketed 20–35% by one conceptual swap: 26% is profit as a share of revenue (a margin), not profit as a share of capital (a return). The entry is therefore rated below the bar and published as a counterweight.

In short: four lines first

What it costs to get in

All-in store purchases typically high-six to seven figures in USD (broker basis; no primary statistics)

Roughly what it earns

26–27%（US laundromat median net operating margin (CLA survey)）

How much work for you

High burden (cleaning, repairs, wash-and-fold staffing; "passive" is marketing language)

The biggest catch

The numbers that matter

US laundromat median net operating margin (CLA survey)

26–27%

Operator estimate Stale data As of: 2024-12-31 Source: Coin Laundry Association, 2024 Laundry Industry Survey (compiled summary)

Why we think it makes money

The lesson is in the bases: the survey median (US$335K revenue) sits far below the census-derived mean (about US$504K) — the mean is pulled up by a minority of large stores, and anyone modelling on the mean is wrong from step one. Planning on the median store is the first thing this entry teaches.

The cost structure is public: utilities run about 20–21% of revenue and rising; equipment replacement is lumpy capex (a full retool every 10–15 years) that never appears in ROI marketing; wash-and-fold services turn a "passive" asset back into a staffed business.

The industry itself is unremarkable: IBISWorld puts it at about US$7.2bn across roughly 17,461 stores growing about 1.6% a year — a mature, slow industry, inconsistent with the high-return narrative.

How to actually get in

Buy an operating store through a business broker, plus a retooling reserve; all-in cost is typically high-six to seven figures (broker basis only, no primary statistics — order-of-magnitude reference only).
New-build and franchise/equipment-vendor packages provide one-stop store creation; their pro formas are precisely what this page takes apart — check every line against the CLA survey's median basis before signing.

What it costs, what it earns

Entry amount: All-in store purchases typically high-six to seven figures in USD (broker basis; no primary statistics)
How much work for you: High burden (cleaning, repairs, wash-and-fold staffing; "passive" is marketing language)

Costs & taxes, item by item:

Utilities: about 20–21% of revenue (CLA survey) — the largest cost, and uncontrollable.
Equipment replacement reserve: washers and dryers last about 10–15 years; a full-store retool is a six-figure event and must be annualised into any return calculation.
Labour: the self-service part is lean, but wash-and-fold, cleaning and security turn "passive" back into staffing — and the owner's own time is costed at zero in most pro formas.

Basis: this site uses full-cost net returns only — income minus vacancy, management, maintenance, taxes and insurance, then financing interest, with entry costs in the denominator. See the methodology。

Identity & tax

Status (residency / citizenship)

美国 EB-5（区域中心预留类别）/ 行政令金卡

This asset does not count toward the channel This asset leads to no status

Threshold: EB-5 乡村 TEA 800,000 美元起

在美国买物业或买生意本身不产生任何身份：EB-5 是独立的移民投资通道（且本站只讲项目机制、不指向具体项目）；普通房产、REIT 与小生意都不计入。另注意：绿卡 = 全球征税，身份与税务在本站的美国条目里永远成对出现。

Source: 美国移民局（USCIS）EB-5 项目页；Visa Bulletin

Tax (investor level)

小生意经营所得按业主结构纳税（个人/LLC 穿透或公司税），另有州销售税与雇佣税——本条目的结论不因税务改变。

经营利润按所选实体形态纳税：穿透实体在业主层面报税，非居民业主进入 ECI 与报税义务；雇人即有雇佣税与劳工合规。
自助洗衣的服务收入在多数州不征销售税、投币设备口径各州不同，逐州核对。

Double-tax treaties: 同美国条目通例：与新加坡无全面协定；非居民业主的报税与预提按 ECI 框架。

Source: 美国国税局（IRS）小企业税务指引

This section is general information only — not immigration or tax advice. Program rules change frequently; before acting, rely on the official texts and a licensed adviser.

Risks: what could go wrong

The data is survivors reporting on themselves: CLA survey respondents are stores still operating; failed stores are not in the sample, so the 26–27% median margin is systematically flattering. Even so, it supports only mid-single to low-double-digit capital returns — which shows the scale of the marketed figures' inflation. If these happen, our take changes: If the CLA or a statistical agency publishes a methodology-bearing industry return series, this entry is rebuilt on it.

Utilities and rent squeeze from both sides: per-turn pricing has limited elasticity while water, energy, insurance and rent rise together — the median store's margin is what gets eaten first. If these happen, our take changes: None (ordinary operating risk).

Catchment fragility and substitution: a laundromat's demand radius is a few streets, so a new large store or chain entry diverts volume directly; on the other side, home-machine replacement and in-building laundry in new apartments erode the customer base over time — the median store's revenue base is not secure, which is the other face of an industry growing only about 1.6% a year. If these happen, our take changes: None (ordinary operating risk).

What we have not verified yet

The following key figures have not yet been verified; the reason is noted for each item.

The primary source of the "20–35% ROI" and "95% five-year success" claims: traced through multiple channels and not found in any methodology-bearing CLA document; treated as unsourced. Readers holding the original document are welcome to correct this.
Primary statistics for single-store acquisition prices: broker basis only, no industry series.

FAQ

Isn't a 26–27% margin good enough?: A margin answers "how much of each revenue dollar survives"; a return answers "how much each invested dollar earns per year". The median store keeps about US$90K against an all-in cost of US$700K–1M — roughly 9–13% before annualised retooling and the owner's time. Respectable, and not 35%. Telling the two rates apart is the first line of defence against all small-business marketing.
Why is the "95% five-year success rate" not credible?: Because it has no denominator and no method: whether it counts registered businesses, tax-filing stores or association members is unknowable. It is also inconsistent with observable facts — the industry's store count has been flat at roughly 17,000 for years; if new stores truly survived five years at 95%, the count would be compounding with openings. A high number without a method is treated as marketing by default.
Why could the UAE laundromat entry stand, then?: Different basis: the UAE entry uses one vendor's complete model, labelled as a vendor model with its contradictions published, and Dubai's demand structure has official statistical support. This entry faced an unsourced industry myth. Both print their evidence grades on their faces — that is this site's method.

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Data dates are marked per metric; page updated 2026-11-08. This site publishes information and is not investment advice; the corrections channel is in the Disclaimer。