Better than a rental

With slowing net migration, the rental market is pretty flat around most of the country at present, prompting landlords to look for other ways to realise a return on their investments. 

“Yes, property offers capital gain in the good years, but it can be quite high risk, and high maintenance too,” says Royce Little. “That’s why it’s no surprise that we’ve seen more and more people turning to Speed Queen recently.

“We have one client who was so pleased with his first laundromat that he set up a second, then a third, fourth and fifth. He sold up all his rental properties and now focuses only on laundromats. That might surprise some, but not us – we’ve proved again and again that, set up properly, Speed Queen-equipped laundromats can offer a 20-30% return on investment. With cashless payment and remote operation, they are a semi-passive investment.”

Royce is head of laundromat sales for Speed Queen, the oldest and largest manufacturer of commercial laundry equipment in the world. “Despite being founded in 1908, we’ve always been at the cutting edge of technology and trends. That’s why our operators continue to make big profits,” he says.

“Our modern laundromats offer technological advances that have been big game changers for the industry. By offering cashless payment and remote operation, laundromats have become even more attractive opportunities for owners as investors. And because you don’t need expensive high street or mall locations, Speed Queen’s partners are reaping the rewards of us being ahead of the game.

“That’s why we say Speed Queen is a perfect model for anyone seeking a semi-passive income.”

Cashless means payment assured

“From an investor’s perspective, cashless payments offer a lot of benefits,” explains Royce. “For a start, with no cash on site there are no security issues. There are no worries about handling, collecting and banking coins, either. 

“That’s why we developed our own sophisticated system for laundromats, which allows not just for cards but payWave and Apple Pay, too. You don’t need pockets full of heavy cash to be able to wash your clothes anymore. And, for our investors, it means the payments go directly into their accounts with no risk of default – not like being a landlord!”

Remote operation

Speed Queen offers another massive benefit to prospective investors: remote operation. “This has revolutionised the way owners interact with their businesses – you can sit in Kerikeri and watch the profits flow in from Invercargill, if you like,” says Royce.

“Via the internet, you can have complete visibility of all operations in your store from wherever you are: how many cycles each machine has done, when the peaks and troughs of the operating cycle are; and if there’s been a very rare fault or issue. If there is a blocked drain, for example, the machine will message you immediately to let you know.

“Even if there is a fault, it’s not a problem – we have servicing agents in every town in the country. They rarely have a lot of work to do for Speed Queen, though, because our equipment is pretty indestructible! Our machines will work reliably, day after day, for an average of 15-20 years.”

Better than a franchise

Speed Queen is not actually a franchise – you operate under your own brand, but Speed Queen provides all the help you need to get up and running. This covers everything from site selection according to proven demographic and parking criteria, to meeting council regulations and launching your business.

“We carry out a full feasibility study on any site, looking at the demand and potential capacity of turnover versus fixed costs to ensure the right mix of equipment in the right place,” says Royce. “By putting in bigger capacity machines, customers can do their whole week’s washing in an hour, and enjoy free wi-fi while they wait. It’s an approach that has proved incredibly reliable and has created a perfect semi-passive investment opportunity.”

A medium-sized laundromat requires a total investment of $250-350,000, much of which can be financed. The deposit required is $100,000. “The return on the total investment is in the region of 20-30%, and we’ve had some owners do much better than that,” says Royce.

“This is an excellent opportunity that suits investors looking for an alternative to property,” Royce explains. “We want to hear from anyone who has the desire to build a successful business in any part of the country… and you don’t even need to move!

“Whatever your situation, give me a call. Let’s discuss how Speed Queen can help you.”  

See this advertorial on page 45 of Franchise New Zealand magazine Year 34 Issue 1

Contact details for Speed Queen

For more information and advice on buying a franchise get your FREE copy of Franchise New Zealand magazine.

We welcome links from other websites to this article. Please note that this article is copyright © Eden Exchange NZ Holdings Limited, Franchise New Zealand magazine and Franchise New Zealand On Line. While it may be downloaded for personal use, no part may be reproduced on any other website, in electronic or printed form or in any other form whatsoever.