Laundromat Diligence Checklist
Use this checklist to validate turns utilities lease risk capex timing and debt cushion before LOI.
Built from the Acquidex laundromat analysis framework for first-time buyers who need evidence not stories.
Disclaimer: This checklist is intended to assist with diligence and does not replace full diligence.
Deal Setup
| Checklist Item | Why It Matters | Evidence Requested | Status / Notes | |
|---|---|---|---|---|
| Confirm asking price and structure assumptions | Avoid underwriting against outdated deal terms | Listing package LOI draft broker email | ||
| Verify stated SDE and adjustment schedule | Most bad deals start with bad normalization | SDE bridge with line-item add-backs | ||
| Document pre-LOI go/no-go thresholds | Pre-commit criteria reduce emotional bidding | One-page investment memo with hard thresholds |
Demand and Revenue
| Checklist Item | Why It Matters | Evidence Requested | Status / Notes | |
|---|---|---|---|---|
| Store is in a stable demand micro-market | Local demand drives turns and retention | 3-year local demographic trend and rental mix | ||
| Self-service revenue reconciles to machine capacity | Capacity mismatch can indicate weak data quality | Machine count vend prices turns model | ||
| Dryer revenue is proportionate to washer volume | Disproportionate dryer revenue can signal bad reporting | Dryer meter or POS breakdown by month | ||
| Wash-dry-fold revenue isolated and tested | Service revenue can be low-quality and labor-heavy | Revenue by stream for 24 months | ||
| Commercial account concentration measured | One large account can distort valuation | Top account list with monthly revenue | ||
| Seasonality mapped over 24 months | You need downside visibility not annual averages | Monthly sales trend by category | ||
| Competitive radius and in-unit laundry trend checked | Local demand can erode before revenue visibly breaks | Market map and nearby housing stock review |
Market and Risk
| Checklist Item | Why It Matters | Evidence Requested | Status / Notes | |
|---|---|---|---|---|
| Parking access visibility and signage rights checked | Convenience drives repeat traffic and pricing power | Site walk-through signage clause and parking layout | ||
| Crime vandalism and security incident history reviewed | Security problems quietly compress margin | Police reports insurance claims and incident logs |
Pricing and Unit Economics
| Checklist Item | Why It Matters | Evidence Requested | Status / Notes | |
|---|---|---|---|---|
| Vend price history by machine class | Recent increases may hide volume weakness | Price change log for 24 months | ||
| Turns per day by washer type validated | Turns are the core throughput KPI | Card system and meter logs by machine | ||
| Average ticket and mix trend reviewed | Mix shifts often explain margin changes | Monthly ticket and mix report | ||
| Throughput assumptions are realistic for peak windows | Overstated turns overstate value | Peak-hour observation sheets and utilization notes |
Utilities and Infrastructure
| Checklist Item | Why It Matters | Evidence Requested | Status / Notes | |
|---|---|---|---|---|
| Water and sewer costs trended by month | Utility inflation can crush margin | 24 months water sewer bills | ||
| Gas and electric costs trended by month | Heat and dry costs are major margin driver | 24 months gas electric bills | ||
| Utility spend ratio benchmarked to sales | Catch hidden inefficiency quickly | Utility-to-sales worksheet | ||
| Utility accounts and meters shared vs separate confirmed | Shared meters can hide true utility burden | Utility account list and meter map | ||
| Known leaks drain issues boiler events documented | Infrastructure surprises are expensive | Repair tickets and vendor invoices | ||
| Drain vent and plumbing condition checked | Behind-wall failures create major downtime | Plumber inspection report | ||
| Electrical and gas line capacity checked | Insufficient capacity blocks upgrades | Licensed contractor inspection | ||
| Water heater or boiler age capacity redundancy and maintenance reviewed | Boiler failures create immediate downtime and cash bleed | Service records and equipment specs |
Equipment and Capex
| Checklist Item | Why It Matters | Evidence Requested | Status / Notes | |
|---|---|---|---|---|
| Full machine roster with age and model compiled | Age profile predicts replacement cycle | Equipment schedule with install dates | ||
| Major repairs by machine reviewed | Repeated failures imply deferred capex | 24 months repair logs by machine | ||
| Card payment system lifecycle reviewed | Legacy systems create downtime and fraud risk | Vendor contract and service history | ||
| Manufacturer support and parts lead times confirmed | Long parts delays can kill uptime and revenue | Vendor support confirmation and parts ETA notes | ||
| 12-36 month capex plan built | Valuation must include upcoming replacement | Capex forecast with quotes | ||
| Deferred replacement risk adjusted in valuation | If capex is near-term price should reflect it | Offer bridge with capex adjustment line | ||
| Reimage or retool cost estimated if positioning is weak | Cosmetic overhaul may be required to compete | Vendor bids and floor plan refresh estimate |
Lease and Real Estate
| Checklist Item | Why It Matters | Evidence Requested | Status / Notes | |
|---|---|---|---|---|
| Remaining base term and options confirmed | Lease control is core asset value | Fully executed lease and amendments | ||
| Assignment transfer language reviewed | Transfer friction can kill financing | Lease assignment clause legal summary | ||
| Exclusive-use or non-compete protection confirmed | Nearby competing laundry in the same center can impair value | Lease exclusivity clause summary | ||
| HVAC roof slab and building responsibility confirmed | Surprise capital costs often hide in vague leases | Lease responsibility matrix and landlord confirmation | ||
| Landlord estoppel requested before close | Confirms lease terms defaults options and side agreements | Executed landlord estoppel letter | ||
| Rent escalators and CAM trend reviewed | Rent shock can break post-close returns | 3-year rent/CAM statements | ||
| Landlord relationship and redevelopment risk checked | Site risk is often underestimated | Landlord estoppel and center plan |
Legal and Compliance
| Checklist Item | Why It Matters | Evidence Requested | Status / Notes | |
|---|---|---|---|---|
| UCC liens and equipment ownership verified | Equipment financing or liens reduce true asset ownership | UCC search bills of sale and lien releases | ||
| Sales tax payroll tax and business license compliance checked | Quiet tax issues become buyer liabilities | Tax clearance confirmations and license status | ||
| Water sewer gas boiler and occupancy permits confirmed | Missing permits can trigger shutdowns or fines | Permit list and inspection history |
Financial Quality
| Checklist Item | Why It Matters | Evidence Requested | Status / Notes | |
|---|---|---|---|---|
| Tax returns reconcile to P&L and deposits | Reconciliation quality predicts reporting trust | 3 years returns P&L bank statements | ||
| Cash controls tested for leak points | Cash-heavy stores need tighter controls | Cash handling SOP and deposit logs | ||
| Owner draw and personal expenses normalized | Clean normalization protects valuation | General ledger and owner add-back support | ||
| Repair reserve normalized to realistic run-rate | Understated repairs overstate earnings | Historical repairs plus forward reserve model |
Revenue Verification
| Checklist Item | Why It Matters | Evidence Requested | Status / Notes | |
|---|---|---|---|---|
| Card or POS raw transactions matched to P&L and deposits | Raw data exposes leakage and reporting gaps | Raw export and reconciliation worksheet | ||
| Coin collection process and variance log reviewed | Cash businesses leak without tight controls | Coin count logs and variance notes |
Customer Behavior
| Checklist Item | Why It Matters | Evidence Requested | Status / Notes | |
|---|---|---|---|---|
| Machine-level usage by daypart and day of week reviewed | Turns per day hides utilization bottlenecks | Machine usage export by hour and day |
Operations and Labor
| Checklist Item | Why It Matters | Evidence Requested | Status / Notes | |
|---|---|---|---|---|
| Owner role mapped and replacement plan built | Owner dependence kills transferability | Weekly owner task map and hours | ||
| Attendant staffing model tested against volume | Labor understaffing distorts margin | Schedule payroll and productivity trend | ||
| SOPs documented for open/close and cash flow controls | Weak process raises shrink and inconsistency | SOP manual and training records | ||
| Site visit confirms uptime cleanliness and broken-machine count | Observed reality should match reported store quality | Field notes with timestamped photos | ||
| Wash-dry-fold contribution margin calculated | Revenue without contribution is misleading | Service-line contribution worksheet | ||
| Soap vending and ancillary revenue margin tested separately | Small income lines can be overstated or low quality | Sales by category and margin worksheet | ||
| Refunds outages and customer complaint logs reviewed | Signals recurring failures and goodwill loss | Support logs and incident notes |
Insurance and Transition
| Checklist Item | Why It Matters | Evidence Requested | Status / Notes | |
|---|---|---|---|---|
| Claims history and insurability reviewed | Past claims can drive future premiums or exclusions | Loss runs and broker coverage confirmation | ||
| Seller transition support and training obligations documented | Knowledge transfer drives stability post-close | Transition plan and training schedule |
Closing Mechanics
| Checklist Item | Why It Matters | Evidence Requested | Status / Notes | |
|---|---|---|---|---|
| Working capital and cash on hand treatment defined | Cash-heavy stores need explicit handoff rules | Closing statement and cash protocol |
Debt and Downside
| Checklist Item | Why It Matters | Evidence Requested | Status / Notes | |
|---|---|---|---|---|
| Base case debt service coverage modeled | You must verify cushion before LOI | Debt model with annual debt service | ||
| Downside case modeled 10% turn drop | Need to know if debt coverage survives | 3-scenario model with debt service | ||
| Downside case modeled utility plus 12% | Utility shocks are common and recurring | Stress test output | ||
| Downside case modeled first-year equipment shock | Capex timing can force emergency financing | Stress test with repair/capex event | ||
| Downside case modeled new competitor or rent jump at option reset | External shocks can break economics | Market and lease stress case | ||
| Bad-luck-year DSCR remains acceptable | Thin coverage is where buyers get burned | DSCR bridge base vs downside |
Tip: Use this in your data room tracker and mark each row as Verified or Unresolved before final pricing.