Tons of Bubbles Laundromat Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$255,100 - $1,959,800
Franchise Fee
$22,000
Min Cash Required
$12,000
Total US Locations
4
Business Summary
Tons of Bubbles Laundromat businesses operate laundromats that offer high-quality and efficient self-service laundry wash and dry services to individuals and families. The franchise provides a recognizable design, decor, and color scheme, along with uniform operating standards, techniques, and procedures.
Corporate History
Tons of Bubbles Laundromat Franchise, Inc. (TOBLF) was formed as a California corporation on August 3, 2023, and began offering franchises in March 2024. TOBLF does not have a predecessor or parent entity and has never directly operated the type of business it now franchises. However, its affiliate, Tons of Bubbles Laundromat, Inc. (TOBL), which owns the intellectual property, has been operating Tons of Bubbles Laundromat businesses since September 2004, with four corporate-affiliated locations opened between 2005 and 2021 in California.
Financial Overview
Investment Range
$255,100 - $1,959,800
Franchise Fee (Low)
$22,000
Franchise Fee (High)
$39,500
Minimum Cash Required
$12,000
Royalty %
6.5%
Equipment Costs (Low)
$176,000
Equipment Costs (High)
$1,350,000
Working Capital
$77,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
The financial statements for Tons of Bubbles Laundromat Franchise, Inc. are audited as of February 22, 2024. The franchisor has not yet commenced principal operations and incurred losses from its inception on August 3, 2023, through December 31, 2023. These factors raise substantial doubt about Tons of Bubbles Laundromat Franchise, Inc.'s ability to continue as a going concern, though management is exploring financing options. Additionally, the California Department of Financial Protection and Innovation has required Tons of Bubbles Laundromat Franchise, Inc. to defer collecting initial franchise fees from California franchisees until all pre-opening obligations are met and the business is open, due to concerns about the franchisor's capitalization and reliance on franchise fees for funding operations.
Financing Details
Tons of Bubbles Laundromat Franchise, Inc. does not offer any direct or indirect financing to its franchisees. This means franchisees must secure their own funding for initial investment costs, equipment, and ongoing operational needs through third-party lenders or personal resources. The franchisor also does not guarantee any franchisee's notes, leases, or other financial obligations.
Performance Metrics
Total US Locations
4
Franchised Units
0
Corporate Units
4
Avg Square Footage
1,800
Franchising Since
2024
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Tons of Bubbles Laundromat has no litigation cases to report in Item 3 of its Franchise Disclosure Document. No litigation is required to be disclosed for the franchisor, its predecessors, or executives.
Bankruptcy History
Tons of Bubbles Laundromat has no bankruptcy history to report in Item 4 of its Franchise Disclosure Document. No bankruptcy is required to be disclosed for the franchisor or its executives.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Tons of Bubbles Laundromat franchisees must provide written notice of their intent to renew between 60 and 180 days before the current term expires. They must be in good standing, free of defaults, and not have received more than three default notices in the past 12 months. Franchisees will need to sign the franchisor's then-current franchise agreement and all associated documents, which may have different terms and conditions. A non-refundable renewal fee of $9,500 is required, and franchisees must also make any necessary renovations, upgrades, and modernizations to their business premises to meet current brand standards. They must also have the right to maintain possession of their location under their lease for the new term and take any other actions Tons of Bubbles Laundromat Franchise, Inc. reasonably requires.
Training & Support Program
Franchisor Assistance
Tons of Bubbles Laundromat Franchise, Inc. provides several forms of assistance to its franchisees. Before opening, the franchisor offers an initial training program for up to two people at no charge, loans a confidential operations manual, and provides advice for site selection, requiring approval for the chosen location. They also review lease agreements, designate a territory, and offer basic design and layout specifications for the premises, which require the franchisor's approval before construction. During the buildout phase, Tons of Bubbles Laundromat Franchise, Inc. conducts at least one monthly inspection, with franchisees reimbursing travel costs for in-person visits. The franchisor also provides materials and consultation for the grand opening, including a two-day onsite visit (reimbursable for franchisee's costs). Ongoing assistance includes informing franchisees of mandatory operating standards, providing advice on operations based on reports or inspections, and offering additional or refresher training courses (which may incur additional fees). Franchisees are also allowed to continue using confidential materials and Marks, and are provided with a list of designated and approved suppliers.
Initial Training Hours
23
Training Location
Corporate-affiliated location in Walnut Creek, California, or another designated location, with portions conducted online.
Ongoing Support
Tons of Bubbles Laundromat Franchise, Inc. offers ongoing support to its franchisees after they open. This includes providing mandatory standards, specifications, and procedures for operating the business, and upon reasonable request, offering advice and guidance on operations based on reports, inspections, or discussions. The franchisor also provides access to confidential materials, including the Franchise Operations Manual and the brand's trademarks. Additional training, such as refresher courses or training for new personnel, may be offered, potentially incurring a fee for the franchisee. The franchisor also provides a list of designated and approved suppliers for products and services. Optionally, Tons of Bubbles Laundromat Franchise, Inc. may modify the System, conduct periodic on-site visits with reports, establish a Brand Fund, and set minimum/maximum resale prices.
Franchise Requirements
Ideal Candidate Profile
Tons of Bubbles Laundromat seeks qualified individuals, including honorably discharged veterans and young entrepreneurs under 25 who will be majority owners of their franchise. The franchise also offers conversion opportunities to existing laundromat owners who have operated for at least six months and have a minimum 500 square foot business. For all Tons of Bubbles Laundromat franchisees, an active, continuing, and substantial personal involvement and hands-on supervision by a Responsible Owner is a major requirement for success. This Responsible Owner must be actively involved in operating the Tons of Bubbles Laundromat Business on a full-time basis and provide on-site management and supervision, though they may delegate management functions to an approved Franchise Manager.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Full-Time
Territory Type
Protected
Territory Size Requirements
Tons of Bubbles Laundromat Franchise, Inc. grants franchisees a protected territory that is typically defined by a geographic area, population characteristics, and other relevant demographic factors. This territory is usually between a one-eighth and two-mile radius around the Tons of Bubbles Laundromat business. In areas that are not major metropolitan centers, the size of the territory may be larger.
Staffing Notes
Tons of Bubbles Laundromat Franchise, Inc. requires franchisees to determine their own appropriate staffing levels for their business to ensure compliance with the franchise agreement and system standards. Franchisees are solely responsible for hiring, training, and supervising their employees or independent contractors for the proper operation of the laundromat. This includes managing all wages, commissions, benefits, and taxes. The franchisor emphasizes that these individuals are the franchisee's own employees or contractors, not those of Tons of Bubbles Laundromat Franchise, Inc., and the franchisor does not control their day-to-day activities or work methods. Franchisees must ensure all employees and independent contractors review and sign a prescribed acknowledgment form clarifying the franchise relationship and acknowledging the franchisee as their sole employer. A conspicuous notice explaining this relationship must also be posted in the back-of-house area.