Tumble Fresh Coin Laundry logo

Tumble Fresh Coin Laundry Franchise

Audited Financials
OtherEst. 2022Woodbury, MN
www.tumblefreshlaundry.com

Risk Score

Pending analysis

Investment Range

$1,010,000 - $2,535,500

Franchise Fee

$27,000

Total US Locations

15

Business Summary

Tumble Fresh Coin Laundry operates self-service laundromats that offer quality, convenient, and efficient washers and dryers in an inviting and vibrant space.

Corporate History

Tumble Fresh Franchising, LLC was formed as a Minnesota limited liability company on April 7, 2022, and began offering Tumble Fresh Coin Laundry franchises in June 2022. While the franchisor itself has never operated a Tumble Fresh Coin Laundry location, its affiliate, Linn Retail Centers, Inc., started operating Tumble Fresh Coin Laundry locations in 2011.

Financial Overview

Investment Range

$1,010,000 - $2,535,500

Franchise Fee (Low)

$27,000

Franchise Fee (High)

$39,500

Royalty %

6%

Marketing %

2%

Equipment Costs (Low)

$855,000

Equipment Costs (High)

$1,950,000

Working Capital

$50,000

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

The franchisor's financial condition, as shown in Tumble Fresh Coin Laundry's financial statements, raises questions about its ability to provide services and support to franchisees.

Financing Details

Tumble Fresh Coin Laundry does not offer direct or indirect financing and does not guarantee franchisee notes or obligations. However, it has a relationship with Alerus Financial, N.A., which provides SBA financing to qualified franchisees. Alerus generally offers up to $5,000,000 for the development of a Tumble Fresh Coin Laundry location, with interest rates ranging from prime plus 1.25% to 2.75%. These SBA loans typically require an advance rate of up to 85% and have terms varying from 120 to 300 months. The franchisor receives a 0.5% referral fee from Alerus for loans obtained by referred franchisees.

Performance Metrics

Total US Locations

15

Franchised Units

2

Corporate Units

13

Avg Square Footage

3,850

Franchising Since

2022

Agreement Terms

Initial Term

10 years

Renewal Term

5 years

Renewal Conditions

To renew a Tumble Fresh Coin Laundry franchise, franchisees must provide advance notice to the franchisor, be in compliance with all contractual obligations to the franchisor and third parties, renovate their business to meet current brand standards, sign the franchisor's then-current franchise agreement and related documents (including a personal guaranty), and sign a general release (unless prohibited by law).

Training & Support Program

Franchisor Assistance

Tumble Fresh Coin Laundry provides comprehensive assistance to its franchisees. Before opening, the franchisor reviews and advises on potential locations, supplies standard building plans, specifications, and décor requirements, and offers lists of approved and required suppliers for equipment, signs, and initial inventory. Franchisees receive access to the Brand Standards Manual and an initial training program. The franchisor also advises on market introduction plans and provides one to three days of on-site support for the grand opening. After opening, Tumble Fresh Coin Laundry offers ongoing advice and consulting via phone or electronic communication for operating problems, provides recommended prices for products and services upon request, and offers recommended procedures for administration, bookkeeping, accounting, and inventory control. Additionally, the franchisor administers the Marketing Fund, maintains the brand website which includes franchisee information, and makes the Tumble Fresh/Pet Fresh App available to customers, handling payment processing for App transactions.

Initial Training Hours

30

Training Location

Corporate location (Woodbury, MN) or franchisee's location, and remotely.

Ongoing Support

After opening, Tumble Fresh Coin Laundry provides ongoing support by offering advice on operating problems through telephone or electronic communication when requested. Upon request, the franchisor also provides recommended prices for products and services, as well as recommended administrative, bookkeeping, accounting, and inventory control procedures. Tumble Fresh Coin Laundry maintains a brand website that includes franchisee business information and makes the Tumble Fresh/Pet Fresh App available to customers, providing all processing services for transactions made through the App at the franchisee's location. In-person support is available upon request for a fee.

Franchise Requirements

Ideal Candidate Profile

Tumble Fresh Coin Laundry seeks a "Principal Executive" for each franchise who will be primarily responsible for the business and hold decision-making authority. This individual must own at least 10% of the business and successfully complete both the initial training program and any future post-opening training programs developed by the franchisor. The Principal Executive is also expected to make reasonable efforts to attend all required meetings, including regional or national brand conferences, and cannot miss more than three consecutive required meetings.

Industry Experience Required

No

Management Experience Required

Yes

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

retail

Owner Participation

Semi-Absentee

Territory Type

limited

Territory Size Requirements

Tumble Fresh Coin Laundry territories generally encompass an area around the location that is the lesser of 2 miles or an area containing 20,000 people.

Staffing Notes

Tumble Fresh Coin Laundry provides suggested staffing levels and operational instructions in its Manual, which franchisees can use for training new employees. Franchisees are solely responsible for all hiring decisions and employment conditions. Each Tumble Fresh Coin Laundry business must always be under the on-site supervision of the Principal Executive or a general manager who has completed the franchisor's training program.