Speed Queen Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$1,199,663 - $1,983,000
Franchise Fee
$20,000
Total US Locations
29
Business Summary
Speed Queen Laundry Franchise LLC offers franchises for the establishment, development, and operation of high-end laundromats under the SPEED QUEEN® name and operating system. These Speed Queen Stores provide customers with self-service access to commercial washing machines, washer-extractors, and tumblers.
Corporate History
Speed Queen Laundry Franchise LLC was formed in Delaware on April 22, 2019, and began offering franchises for its high-end laundromats in May 2019. Its direct parent, Speed Queen Laundry LLC, was formed in 2016, and the ultimate parent, Alliance Laundry Systems, LLC, was formed on March 26, 1998. An affiliate, Speed Queen Laundry Stores LLC, also formed in 2016, owns and operates 15 company-owned Speed Queen Stores.
Financial Overview
Investment Range
$1,199,663 - $1,983,000
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$49,500
Royalty %
4%
Marketing %
1%
Equipment Costs (Low)
$1,062,163
Equipment Costs (High)
$1,815,000
Working Capital
$30,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Going concern qualification
Financial Health Notes
The financial health of Speed Queen Laundry Franchise LLC raises concerns about its ability to provide services and support to franchisees, as noted in its FDD. The company's financial statements reflect a "going concern qualification," meaning there is substantial doubt about its ability to continue operating without ongoing financial support. The company has consistently reported net losses, including $83,281 in 2024, and relies on advances from its affiliates to fund its operations.
Financing Details
Speed Queen Laundry Franchise LLC's Ultimate Parent, Alliance Laundry Systems LLC, offers financing to qualified franchisees for a portion of their initial investment. This financing can cover 70% to 90% of the total project costs, up to a maximum loan amount of $2,000,000. Loan terms typically range from 5 to 10 years, with variable interest rates set at the Wall Street Journal Prime Rate plus 1.50% to 4.50%, depending on the franchisee's creditworthiness. The first payment can be deferred for 90 days, and franchisees may have interest-only payments for the first 1 to 16 months. A down payment of 10% to 30% of the total project cost is required. Franchisees must sign a personal guaranty, and the loan is secured by a security interest in the store's property (excluding real estate).
Performance Metrics
Total US Locations
29
Franchised Units
14
Corporate Units
15
Avg Square Footage
4,500
Franchising Since
2019
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Speed Queen Laundry Franchise LLC has no litigation to report in this document.
Bankruptcy History
Speed Queen Laundry Franchise LLC has no bankruptcy history to report in this document.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew a Speed Queen Store franchise, franchisees must provide at least 12 months' notice before the initial term expires. They must ensure their Speed Queen Store premises and equipment are repaired and updated, and they must not be in breach of any agreements with Speed Queen Laundry Franchise LLC or its affiliates. All monetary obligations must be satisfied, and franchisees must have the right to possess the franchise premises. A renewal fee, specified as $10,000 in Exhibit A, must be paid. Franchisees will also need to execute the then-current Franchise Agreement, which may include different terms, such as increased marketing expenditures or new fees, and sign a General Release. Additionally, they must comply with current qualifications and training requirements.
Training & Support Program
Franchisor Assistance
Speed Queen Laundry Franchise LLC provides a range of assistance to its franchisees. Before opening, Speed Queen Laundry Franchise LLC offers written site criteria and reviews proposed sites, provides access to its confidential operations manual (the "Playbook"), and supplies marketing materials. It also provides standards and specifications for construction, decorating, equipment, furniture, and signs, including approved supplier lists. Initial training is provided for up to two individuals, covering brand concepts, daily operations, POS and payment systems, machine maintenance, revenue management, marketing, and franchisee compliance. During operation, Speed Queen Laundry Franchise LLC continues to provide Playbook access, advice on management, sales, and customer service, and sets required pricing for products and services. It conducts periodic operations evaluations, supplies marketing and public relations materials, and allows the use of its Licensed Marks. The franchisor also develops brochures and advertising through its Marketing Fund. Franchisees must acquire and install a specified Technology Package and Computer System, for which Speed Queen Laundry Franchise LLC provides annual maintenance, updating, and support.
Initial Training Hours
92
Training Location
Houston, TX or other designated training location
Ongoing Support
After opening, Speed Queen Laundry Franchise LLC provides ongoing online access to its Playbook, offers periodic advice and consultation on management, sales promotions, and customer service, and provides required pricing for products and services. Speed Queen Laundry Franchise LLC also conducts periodic evaluations of operations and supplies marketing and public relations materials for local use. Additionally, Speed Queen Laundry Franchise LLC may conduct inspections and advise on operating deficiencies. Supplemental training is available for a fee if needed.
Franchise Requirements
Ideal Candidate Profile
Speed Queen Laundry Franchise LLC seeks qualified individuals or entities who demonstrate strong financial capability, including a good credit score, sufficient net worth, and verified cash in bank or investment accounts. While not explicitly required, previous business or laundry ownership experience is considered favorable. The franchisor also looks for a designated representative who will dedicate substantial time to supervising and conducting the franchised business, indicating a hands-on or supervisory owner involvement.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Protected
Staffing Notes
Speed Queen Stores are expected to operate 24 hours a day, 7 days a week, requiring an estimated 205 staff hours per week. Each Speed Queen Store must always be under the direct, day-to-day, full-time supervision of the franchisee, their designated Representative, or a general manager who has successfully completed Speed Queen Laundry Franchise LLC's training program. If a general manager is in charge, the franchisee or Representative must still actively oversee the store's operations.