Top Laundromats for sale in Ontario June 2025

Overview of the Laundromat Industry in Ontario

The laundromat industry in Ontario presents a mix of opportunities and challenges for entrepreneurs. You'll find a varied landscape of coin-operated laundries across the province, from bustling urban centres to quieter suburban areas.

In recent years, the number of laundromat locations has slightly decreased. This trend might create openings for new, innovative businesses to enter the market and fill gaps in underserved areas.

The revenue potential for laundromats can vary widely:

• Annual revenue: $30,000 to $1 million

• Profit margins: 20% to 35%

Location plays a crucial role in your laundromat's success. High-traffic urban spots or those near universities tend to generate more revenue.

When starting a laundromat in Ontario, you'll need to:

1. Conduct thorough market research

2. Choose a prime location

3. Select the right equipment

4. Offer a mix of services

The industry is evolving with technological advancements. You might consider incorporating modern features like app-based payment systems or energy-efficient machines to stay competitive.

Community engagement is becoming increasingly important. Your laundromat could become a neighbourhood hub, offering additional services or creating a welcoming atmosphere for customers.

While economic challenges exist, there's room for growth and innovation in Ontario's laundromat industry. With careful planning and a focus on customer needs, you can build a successful laundry business in the province.

Importance Of Buying A Laundromat

Buying a coin laundry can be a smart business move. It's an essential service that people always need, regardless of economic conditions. You'll have a steady stream of customers, as not everyone owns a washer and dryer.

Laundromats often require minimal day-to-day involvement. Once set up, they can largely run themselves, giving you flexibility with your time. This makes them an attractive option if you're looking for a side business or passive income.

These businesses can be quite profitable. With proper management and maintenance, you can see a good return on your investment. Plus, there's potential for growth by adding services like wash-and-fold or dry cleaning.

Location is key. Buying a laundromat in a low-income area or near student housing can be especially lucrative. These demographics often rely on laundromats for their washing needs.

You don't need specialized skills or extensive experience to run a laundromat. It's a straightforward business model that's easy to understand and manage.

Here are some key benefits:

• Steady cash flow

• Low labour costs

• Potential for expansion

• Recession-resistant business

Remember to research thoroughly before making a purchase. Visit other laundromats, talk to owners, and consider taking a business course to set yourself up for success.

Key Considerations Before Purchasing

Before purchasing a laundromat in Ontario, you'll need to carefully evaluate several crucial factors. These will impact the potential success and profitability of your new business venture. Let's explore the key areas you should focus on during your due diligence process.

Location and Demographics

The spot you choose for your laundromat can make or break your business. Look for areas with high foot traffic and dense populations. Apartment-heavy neighbourhoods or regions with limited in-home laundry facilities are ideal.

Check the local competition. How many other laundromats are nearby? What services do they offer?

Consider the area's demographics. Are there lots of students, renters, or young families? These groups often rely on laundromats.

Think about parking and accessibility. Is there ample space for customers to park? Is the location easy to reach by public transit?

Don't forget to research future development plans for the area. New housing projects could mean more potential customers down the road.

Lease and Property Details

If you're not buying the property outright, take a close look at the lease terms. How long is the lease? Are there options for renewal?

What are the monthly rent costs? Don't forget to factor in utilities, property taxes, and insurance.

Check if there are any restrictions on operating hours or the types of services you can offer. These could limit your business potential.

Inspect the property thoroughly. Are there any maintenance issues that need addressing? How's the lighting, both inside and out?

Consider the layout. Is there room for expansion or adding new services in the future?

Equipment and Maintenance

The state of the washing machines and dryers is crucial. How old are they? Are they energy-efficient models?

Get a detailed maintenance history. Have the machines been well-cared for? Regular upkeep can extend their lifespan significantly.

Check if there's a mix of machine sizes. Offering various capacities can attract a wider range of customers.

Don't forget about other equipment like change machines, vending machines, and folding tables. Are they in good condition?

Consider the cost of potential upgrades or replacements. Modern, efficient machines can save on utility costs but require a hefty upfront investment.

Financial Performance and Records

Ask for detailed financial records from the current owner. Look at revenue trends over the past few years. Is the business growing, stable, or declining?

Examine the profit margins. How do they compare to industry standards?

Check the breakdown of income sources. Is it all from machine use, or are there additional revenue streams like wash-and-fold services?

Review the operating expenses carefully. Look for areas where you can cut costs or improve efficiency.

Consider hiring an accountant to help you analyze the financials. They can spot red flags or potential issues you might miss.

Don't forget to factor in the cost of any planned upgrades or changes when projecting future profits.

Evaluating A Laundromat

When considering a laundromat for purchase in Ontario, a thorough evaluation is crucial. You'll need to assess various aspects of the business to make an informed decision.

Site Visits And Inspections

Start with unannounced visits to the laundromat at different times. Observe the cleanliness, machine conditions, and customer flow. Check the equipment's age and maintenance records. Look for signs of wear and tear or potential repair needs.

Inspect the plumbing, electrical systems, and ventilation. These are critical for smooth operations. Also, remember to examine the flooring, walls, and ceiling for damage or needed repairs.

Take note of the parking situation and accessibility. Is there ample space for customers? Is the location visible and easy to find?

Reviewing Financial Statements And Tax Returns

Request at least three years of financial records. Look for:

• Revenue trends

• Profit margins

• Operating expenses

• Utility costs

Compare these figures with industry benchmarks for Ontario laundromats. Be wary of any unexplained fluctuations or inconsistencies.

Review tax returns to verify the reported income. This can help spot any discrepancies between stated and actual earnings.

Don't forget to analyze cash flow patterns. Laundromats often deal with a lot of cash, so understanding these patterns is crucial.

Evaluating Customer Base And Traffic

Study the demographics of the area. Is it a residential neighbourhood, near student housing, or in a commercial district? This affects your potential customer base.

Monitor foot traffic at different times:

• Weekdays vs weekends

• Mornings vs evenings

• During different seasons

If possible, talk to current customers. Get their thoughts on the service quality and any improvements they'd like to see.

Check for any nearby developments that could impact future traffic, like new housing projects or businesses closing down.

Assessing Competition

Map out other laundromats in the area. Visit them to compare:

• Pricing

• Equipment quality

• Services offered

• Cleanliness and atmosphere

Look for unique selling points that set your potential purchase apart. Could you offer services that competitors don't?

Consider future competition too. Are there any zoning changes or new developments that could bring in more laundromats?

Research online reviews of nearby laundromats. This can give you insight into customer preferences and pain points in the local market.

Financing Your Purchase

Securing funding is a crucial step in acquiring a laundromat in Ontario. You have several options to finance your purchase, each with its own advantages and considerations.

Personal Savings and Investments

Using your own money to buy a laundromat can be a smart move. It means you'll avoid debt and interest payments. Consider liquidating assets like stocks or property to boost your funds.

RRSPs (Registered Retirement Savings Plan)can be a source of cash too. The Home Buyers' Plan lets you withdraw up to $35,000 tax-free. Just remember, you'll need to repay it within 15 years.

If you've got a decent credit score, a home equity line of credit could work. It often has lower interest rates than other loans.

Remember crowdfunding. Platforms like FundRazr or Indiegogo might help you raise money from friends, family, and strangers who believe in your business idea.

Bank Loans and Small Business Loans

Traditional bank loans are a common choice for laundromat purchases. You'll need a solid business plan and good credit to qualify.

The Canada Small Business Financing Program is worth looking into. It can help you borrow up to $1 million for your laundromat. The government guarantees 85% of the loan, making banks more willing to lend.

Credit unions often offer competitive rates and more flexible terms than big banks. They might be more open to lending for local businesses.

Online lenders like OnDeck or Thinking Capital can be quicker options. But watch out for higher interest rates.

Seller Financing

Sometimes, the current laundromat owner might agree to finance part of your purchase. This can be a win-win situation.

You might negotiate a lower down payment or better terms than a bank would offer. The seller gets a steady income stream from your payments.

Be sure to get everything in writing. Include the interest rate, payment schedule, and what happens if you default.

The seller might want a higher purchase price in exchange for financing. Crunch the numbers to make sure it's a good deal for you.

Investor Partnerships

Teaming up with investors can help you buy a bigger or better-located laundromat. They bring money to the table, while you manage the business.

Look for silent partners who will provide funds but will not interfere with day-to-day operations. Family, friends, or local business people might be interested.

Consider offering a percentage of profits instead of fixed payments. This aligns your interests with your investors'.

Be clear about roles and expectations from the start. A well-drafted partnership agreement can prevent headaches down the road.

Angel investors or venture capitalists might be interested if your laundromat has a unique angle, like eco-friendly services or a high-tech setup.

Legal and Regulatory Considerations

When buying a laundromat in Ontario, you'll need to navigate various legal and regulatory requirements. These cover business licensing, environmental regulations, health and safety standards, and employment laws.

Business Licensing and Permits

To operate your laundromat legally in Ontario, you'll need proper licensing. Check with your local municipality for specific permits required.

Most cities mandate a general business licence. You might also need zoning approval to ensure laundromats are allowed in your chosen location.

Some areas require additional permits for coin-operated machines. Water usage permits may be necessary due to the high water consumption of laundromats.

Don't forget to register for HST (Harmonized Sales Tax) if your annual revenue exceeds $30,000. The Canada Revenue Agency handles this process.

Environmental Regulations

Laundromats use significant water and energy, so environmental regulations are crucial. You'll need to comply with local water conservation bylaws.

Consider installing energy-efficient washers and dryers to reduce your environmental impact and operating costs. Some municipalities offer incentives for eco-friendly upgrades.

Proper disposal of wastewater is essential. You may need special drainage systems or permits for large volumes of greywater.

Be mindful of detergent regulations. Some areas restrict phosphate content in cleaning products.

Health and Safety Compliance

Maintaining a clean, safe environment is vital for your customers and staff. You must follow Ontario's Occupational Health and Safety Act.

Regular cleaning and disinfecting schedules are a must. Keep detailed logs to prove compliance.

Ensure proper ventilation to manage humidity and prevent mould growth. This might require specific HVAC systems.

Install adequate lighting and non-slip flooring to prevent accidents. Clear signage warning of wet floors is also important.

First aid kits and fire extinguishers should be readily available and regularly checked.

Employment Laws

If you plan to hire staff, familiarize yourself with Ontario's Employment Standards Act. This covers minimum wage, hours of work, overtime pay, and statutory holidays.

You'll need to register for workplace safety insurance through the Workplace Safety and Insurance Board (WSIB).

Implement proper training programs for employees, especially regarding safety procedures and equipment operation.

Consider creating an employee handbook outlining policies and expectations. This can help prevent misunderstandings and legal issues down the road.

Remember to follow anti-discrimination laws in your hiring practices and workplace policies.

Transitioning Ownership

Buying a laundromat in Ontario involves several key steps to ensure a smooth transfer of ownership. You'll need to carefully evaluate the business, negotiate terms, finalize the sale, and manage the transition period.

Before proceeding, consult a commercial real estate lawyer experienced in commercial transactions. A qualified lawyer can:

• Review and explain all legal documents

• Ensure proper due diligence is conducted

• Identify potential legal issues or liabilities

• Draft or review the purchase agreement

• Advise on regulatory compliance specific to laundromats in Ontario

• Assist with the closing process and transfer of ownership

Don't risk your investment by navigating complex legal matters alone. You want to protect your interests and provide peace of mind throughout the purchase process. Schedule a consultation with a reputable commercial real estate lawyer in Ontario to safeguard your laundromat acquisition.

Due Diligence

Before purchasing a laundromat, you should thoroughly investigate the business. Review financial records, including revenue, expenses, and profit margins. Examine equipment condition and maintenance history.

Check the lease agreement and any contracts with suppliers or service providers. Assess the location's foot traffic and nearby competition. Consider hiring a professional inspector to evaluate the premises and machinery.

Look into local regulations and licensing requirements for laundromat operations in Ontario. Verify that all permits are up-to-date and transferable.

Negotiating Sale Terms

Once you've decided to move forward, it's time to hammer out the deal details. Determine a fair purchase price based on the business's value and your due diligence findings.

Discuss payment structure, such as upfront cash, financing, or seller carry-back options. Negotiate any contingencies, like securing a new lease or meeting specific performance targets.

Consider including a non-compete clause to prevent the seller from opening a rival laundromat nearby. Clarify what's included in the sale, from equipment to customer lists.

Closing The Deal

Once the terms are agreed upon, you'll move to finalize the sale. Engage a lawyer to draft and review the purchase agreement. They can help ensure that all necessary legal documents are in order.

Arrange for the transfer of licenses, permits, and utilities to your name. Set up new bank accounts and merchant services for the business.

Complete any required paperwork with local authorities in Ontario. Plan the date for the official transfer of ownership and exchange of keys.

Managing The Transition

After closing, you'll enter a crucial transition period. Work with the previous owner to learn the ins and outs of daily operations. Familiarize yourself with equipment maintenance routines and supplier relationships.

Introduce yourself to regular customers and consider offering promotions to maintain loyalty. Review and update pricing, policies, and operating hours as needed.

Train any existing staff on your management style and expectations. Look for opportunities to improve efficiency or expand services to boost profitability.

Don't risk your investment by navigating complex legal matters alone. A real estate lawyer's expertise can protect your interests and provide peace of mind throughout the purchase process. Schedule a consultation with a reputable commercial real estate lawyer in Ontario to safeguard your laundromat acquisition.

Conclusion

Investing in a laundromat in Ontario can be a lucrative business opportunity. With careful research and planning, you can find a profitable business that suits your goals and budget.

Recap Of Key Points

When searching for laundromats available for sale in Ontario, consider the location carefully. Look for areas with high foot traffic and a dense population of renters or students. Evaluate the existing equipment and determine if upgrades are needed. Review the financials, including revenue, expenses, and cash flow. Check if there's potential for growth through additional services like dry cleaning or wash-and-fold.

Don't forget to examine the lease terms if you're not purchasing the property outright. Consider hiring a business broker to help you navigate the purchase process and negotiate a fair deal.

Final Tips For Prospective Buyers

Before making an offer, visit the laundromat at different times to observe customer flow. Chat with current customers to gauge their satisfaction. Research local competition and demographic trends in the area.

Have a thorough inspection done on all equipment. Factor in costs for repairs or replacements in your budget. Review utility bills to understand operating expenses. Consider offering eco-friendly options to attract environmentally conscious customers.

Develop a solid business plan that includes marketing strategies and potential improvements. This will help you secure financing if needed and set clear goals for your new venture.

Don't navigate this process alone. Consult a local commercial real estate agent specializing in commercial properties. Their expertise can be invaluable in:

• Finding the best locations for a laundromat

• Negotiating favourable terms

• Understanding local zoning laws and regulations

• Providing insights on property values and market trends

• Connecting you with other local professionals (inspectors, lawyers, etc.)

Remember, a knowledgeable local agent can save you time, money, and potential headaches in your laundromat investment. Reach out to a trusted commercial real estate professional in your area to get started on the right foot.

Encouragement And Motivation To Invest

Laundromats can provide a steady income stream with relatively low labour costs. Many Ontarians rely on laundromats, especially in urban areas. With the right location and management, you can build a successful business that serves your community.

Remember, patience and diligence are key. Take your time to find the right opportunity. Don't be afraid to negotiate or walk away if a deal doesn't feel right. With proper research and planning, you can join the ranks of successful laundromat owners in Ontario. Expanding your search beyond laundromats, exploring other businesses for sale in Ontario can offer additional avenues for investment and growth.

Stay motivated by focusing on the potential for financial freedom and the satisfaction of running your own business. Your hard work can pay off in a thriving laundromat that provides value to your customers and a steady income for you.

FAQ

Are laundromats profitable in Ontario?

In recent years, the laundry business has emerged as a lucrative venture in Canada, offering entrepreneurs a promising opportunity to establish a sustainable source of income. However, diving into this industry requires careful planning and consideration of various factors. For more details on how to start a laundromat, visit this comprehensive guide on starting a laundromat in Canada. For those looking to invest immediately, laundromats for sale in Canada provide a range of options to suit different investment levels and business models. Specific regions like laundromats for sale in London, Ontario and laundromats for sale in Toronto present unique opportunities due to their distinct market dynamics and customer bases. Acquiring an existing laundromat in these areas can offer a head start with established clientele and operational setups, making it easier to step into a profitable and growing industry.

What financing options are available for purchasing a laundromat?

When purchasing a laundromat in Ontario, financing options typically include traditional bank loans, Small Business Administration (SBA) loans, and seller financing. Additionally, buyers might explore partnerships, personal savings, or investor contributions to secure the necessary funds.

Are there any zoning regulations or permits required for operating a laundromat in Ontario?

Yes, there are zoning regulations and permits required for operating a laundromat in Ontario. You will need to check with the local municipal zoning bylaws to ensure your chosen location is zoned for commercial use, specifically for laundromat services. Additionally, you'll need to obtain various permits, such as business licenses and possibly health and safety inspections, before opening your laundromat.

What are the typical monthly operating expenses for a laundromat?

Typical monthly operating expenses for a laundromat in Ontario include rent or mortgage payments, utility costs (water, electricity, gas), maintenance and repairs, supplies (detergents, softeners, etc.), employee wages, insurance, and potential loan repayments. These expenses can vary widely depending on the size and location of the laundromat.

What are the busiest times for laundromat operations?

The busiest times for laundromat operations are typically evenings and weekends when customers are off work and have more time to do laundry. Additionally, the start and middle of the month often see higher traffic as people tend to have more disposable income during these periods.

Resources

https://www.ontariothinksbusiness.com/

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/registered-retirement-savings-plan-rrsp.html

https://www.ontarioca.gov/BusinessLicense

https://www.ontario.ca/document/harmonized-sales-tax-hst

https://www.ontario.ca/laws/statute/90o01

https://www.ontariobusinesscentral.ca/blog/how-to-start-a-laundromat-in-canada/#:~:text=In%20recent%20years%2C%20the%20laundry,and%20consideration%20of%20various%20factors

How to find the best deals on properties for Laundromats in Ontario?

Discovering the best deals on Laundromats in Ontario requires thorough research. Take into account factors such as location, size, amenities, and future growth potential. Explore the three most popular offers:
Laundromat at Bathurst , Laundromat at Main and Laundromat at Simcoe .

What is the average price of Laundromats in Ontario?

The average price of Laundromats in Ontario is influenced by various factors. On average, prices range from $364,506. However, conducting a comprehensive market analysis is essential to grasp specific pricing trends in your desired area.

Where can you find information about Laundromats in Ontario?

Find comprehensive information about Laundromats in Ontario on Find Businesses 4 Sale! Explore our catalog of offers, and if you have any questions, feel free to contact us; we're here to help! Meanwhile, consider checking out the three newest listings:
Laundromat at Bathurst , Laundromat at Main and Laundromat at Simcoe . .