Laundry Business: Franchise or Startup?

If you’re planning to go into the coin laundry business, you can either build your business from scratch or opt for a franchise model available in the market. The following are pros and cons of the two options to help you decide on what suits you best:

Pros

• Proven system with high success rate, training and ongoing support provided by franchisor to get your coin laundry up and running
• Instant brand recognition, the business is ready and waiting for you to start, you do not need to worry about building brand awareness

Cons

• High cost, securing a franchise usually involves a high entrance fee and ongoing monthly or annual fees to keep the business
• No freedom, you can’t change the store decor, the way you operate the business or anything in a franchise system

Pros

• Creative license – you can innovate on your own ideas to run the business; the type of machines you need, store layout and even include value-added services such as coffee bar or kids’ play corner
• Professional freedom – you can pick the location of your store and choose the opening hours that suits your business

Cons

• High failure rate – 25% startups fail within their first year; high risk with no external support or prior experience

It is best to evaluate the options available based on your capital and how much risk you’re willing to take. You can also seek advice from PLE Laundry Equipment Sdn. Bhd., a professional laundry equipment supplier with decades of industry experience.