In the last decade, Malaysia has seen a rapid rise in franchise laundromats. There are good reasons why this business model is attractive. But is this the right fit for you? Part 2 of this 3-part series will examine the pros and cons of buying a franchise laundry business:
Pros of buying a laundry franchise
Proven business model
Successful laundry franchises such as LaundryBar and Cleanpro have established systems, branding, and SOPs. You are buying into something that has already been tested and refined in the local market. This proven model helps you avoid common mistakes which is especially valuable for first-time owners.
Brand recognition
An established franchise comes with the advantage of a well-known brand that customers are more likely to trust. This can bring in foot traffic immediately, especially crucial in competitive areas. It will also save you a lot of time, effort, and money to build up your own brand value.
Ongoing support
Franchisors usually provide assistance with location scouting, renovations, and layout. They can help with supplier contacts, equipment set-up and maintenance, training, and marketing. They also have more experience dealing with local councils for business registration and safety requirements. This is essential to speed up approvals and ensure compliance.
Cons of buying a laundry franchise
High franchise fees and royalty
You will need to pay an upfront franchise fee which can go up to RM500,000 or more. Most franchisors also charge monthly royalty fees as a percentage of your earnings. These costs can impact your long-term profitability.
Limited control and flexibility
A franchise often comes with strict guidelines on branding, operations, and even pricing. You must follow their systems and use their suppliers. There is also often strict stipulation over store layout and location. This means you do not have full control over many aspects of how you run the business.
Dependency on brand reputation
Franchises operate under a single brand name. So, your business is highly dependent on the credibility of that brand. If the brand faces negative publicity or poor service elsewhere, it can affect your business, even if your branch is well-run.
Buying a laundry franchise in Malaysia can be a great way to start your entrepreneurship journey. But it also has its limitations and restrictions. PLE Laundry Equipment Sdn. Bhd., Asia’s no. 1 coin laundry machine distributor, offers a wide range of high quality and globally recognised Huebsch commercial laundry machines to laundry business owners. Upgrade your store operation today. Contact us at 016–262 2965 or 603–5633 6405 to get started now.
