Due diligence is the process of verifying everything a seller tells you before you commit to buying their laundromat. Skip it or rush it, and you risk buying someone else's problems. Done thoroughly, it either confirms a great deal or reveals why the price should be lower — or why you should walk away entirely in 2026.
I'm Nick Kremers, founder of WashBizHub. I have guided hundreds of buyers through this process. Use this checklist as your framework.
Phase 1: Financial Due Diligence
Documents to Request
- 3 years of business tax returns (Schedule C or Form 1120/1065)
- 3 years of monthly P&L statements
- 12 months of utility bills (gas, water, electric) — verify these against claimed revenue
- Payment system reports if card/app payment is used (DexterLive, Laundroworks, etc.)
- Quarterly vending and ancillary revenue records
- Payroll records if the store has employees
- List of all business expenses for the trailing 12 months
Revenue Verification Methods
Utility bills are your best revenue verification tool. Natural gas usage (for dryers) and water usage (for washers) correlate directly with the number of cycles run. Cross-reference claimed revenue against utility consumption patterns. Discrepancies are a red flag requiring explanation.
Research Your Market First
Before making any investment, see the full competitive landscape. WashBizHub's Laundromat Locator lets you browse every US laundromat, check CLEANBI grades, and identify underserved markets — all from one map.
Open the Locator →| Verification Method | Reliability | What It Catches |
|---|---|---|
| 3-yr tax returns | Very high | Understated revenue (sellers rarely overstate to IRS) |
| Utility bills | Very high | Actual wash/dry cycle count; revenue fabrication |
| Payment system reports | High | Card/app transaction history; exact timing |
| Physical coin count | High (if applicable) | Cash verification for coin-only machines |
| Bank statements | High | Revenue deposits; expense patterns |
Phase 2: Equipment Due Diligence
Equipment Inspection Checklist
- Age and model number of every washer and dryer
- Manufacturer warranty status (most warranties are 1–5 years)
- Service history — request all maintenance and repair invoices from the past 3 years
- Physical inspection: door seals, drum condition, bearing noise, control panel function
- Payment system age and compatibility
- Water inlet valves, drain pumps, heating elements
- Dryer lint traps, exhaust systems, gas connections (if gas)
- Vending machines, change machines, bill validators
Hire a qualified laundry equipment technician to do a professional equipment inspection ($500–$1,500). It is the cheapest insurance you can buy before a $300,000+ transaction.
Preferred Equipment Partner
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Phase 3: Lease Due Diligence
The lease is often the most important document in a laundromat deal. A bad lease can torpedo even a strong business.
Key Lease Terms to Review
| Lease Term | What to Look For | Red Flag |
|---|---|---|
| Remaining term | 5+ years preferred | Less than 3 years remaining |
| Renewal options | 2+ 5-year options preferred | No options; landlord discretion |
| Rent escalation | 3% annual cap preferred | CPI-based unlimited escalation |
| Assignment clause | Transferable with landlord approval | Landlord can block assignment |
| Exclusivity clause | Protects your use as laundromat | No exclusivity — landlord can lease to c |