SPEED QUEEN

## Executive Summary

SPEED QUEEN represents a premium opportunity in the laundromat franchise sector, backed by Alliance Laundry Systems LLC, a global leader in commercial laundry equipment manufacturing. Founded in 1908 in Ripon, Wisconsin, Speed Queen has over a century of brand recognition and began franchising in 2014. With approximately 837 locations worldwide (28 franchise units in the US, 800+ licensed stores in Europe, and 16 company-owned units), the brand offers investors access to the recession-resistant laundry services industry with strong equipment backing.

## The Numbers

**Initial Investment:** $1,164,000 - $1,940,000

**Franchise Fee:** Included in total investment package ($576,000 - $992,500 paid to franchisor or affiliates)

**Royalty Fee:** 4% of monthly gross revenue

**Marketing Fee:** 1% of monthly gross revenue

**Average Annual Revenue:** $830,783

**Gross Profit Margin:** 41.2% (32.1% after royalties)

**Estimated Annual Earnings:** $266,515

**Multi-Unit Development (3 stores):** $3,394,000 - $5,630,000

**Contract Term:** 10 years initial, 5-year renewal option

**ROI Range:** 28% - 41% (industry average for vended laundries)

## The Business Model

Speed Queen franchise model leverages the company manufacturing expertise to provide franchisees with premium commercial laundry equipment and a turnkey store development process. The business operates in the self-service laundry sector, which benefits from consistent demand regardless of economic conditions.

Key differentiators include:

- **Equipment Excellence:** As a manufacturer, Speed Queen provides top-tier commercial washers and dryers known for durability and efficiency - **Brand Heritage:** Over 115 years of brand recognition in the laundry industry - **Turnkey Development:** Comprehensive site selection, store design, and buildout support - **Technology Integration:** Modern payment systems and equipment monitoring - **Recurring Revenue:** Subscription-like business model with repeat customers

## System Health

**Network Growth:** The franchise system is relatively young (started 2014) but benefits from the established Speed Queen brand and parent company stability.

**Global Presence:** 837+ total locations demonstrates proven concept scalability.

**Corporate Support:** Strong backing from Alliance Laundry Systems provides financial stability and R&D investment.

**Industry Position:** Speed Queen is recognized as a premium brand in an industry projected for steady growth as urbanization increases and apartment living becomes more common.

## Franchisee Experience

**Training:** Comprehensive initial training covering equipment operation, business management, and customer service.

**Ongoing Support:** Access to Alliance Laundry Systems technical support network and equipment maintenance programs.

**Territory:** Territories are typically protected based on population density and market analysis.

**Owner Involvement:** The model can accommodate semi-absentee ownership with proper management structure.

## Key Considerations

**Advantages:** - High barriers to entry create competitive moats - Recession-resistant essential service - Strong equipment warranty and support from manufacturer-franchisor - Relatively simple operations compared to food service - Potential for absentee/semi-absentee ownership - Strong average ROI (28-41%)

**Challenges:** - High initial investment ($1.1M - $1.9M) - Real estate dependent with specific location requirements - Utility costs can significantly impact margins - Competition from apartment complexes offering in-unit laundry - Relatively young franchise system (10 years)

## Validation Questions

1. What is the average time to breakeven for new Speed Queen locations in my target market? 2. How does the franchisor support site selection and lease negotiation? 3. What equipment maintenance programs are included and what are typical maintenance costs? 4. How are utility costs managed and are there energy efficiency programs? 5. What is the actual franchisee satisfaction rate and turnover? 6. How does the exclusive territory work in densely populated urban areas? 7. What financing options are available through Alliance Laundry Systems or preferred lenders? 8. What is the average customer visit frequency and ticket size? 9. How are new laundromat concepts (wash-and-fold services, pick-up/delivery) being integrated? 10. What happens when equipment needs replacement - are there preferred pricing arrangements?