How to Choose a Laundry Business Franchise in the Philippines - Zenith Capital

A Guide on How to Choose a Laundry Business Franchise in the Philippines

Doing laundry is the bane of many Filipinos. With people becoming busier with their personal and professional lives, no one has time to deal with their labada. It’s an exaggeration—but the point stands: demand for professional laundry care in the Philippines is substantial, with the industry expected to generate $1.57 billion in revenue this year.

It’s no surprise that more people are tapping into this goldmine. A laundry business franchise in the Philippines provides a relatively stable income with minimal inventory and labor costs, making it an attractive venture. If you’re one of them, you’re in luck. This article delves into the country’s laundry franchising industry to help you better understand it.

3 Types of Laundry Business Franchise

A business franchise like laundry services offers the opportunity to enter a lucrative industry with the support and branding of an established company. Are you planning to invest in one? Here are the primary types of laundry franchises you may choose from.

Coin-operated laundromatLow-maintenance
Easy operation
Self-service laundryConvenient
Minimal staffing
Full-service laundryPremium
Quality control

1. Coin-operated laundromat

A coin laundry franchise in the Philippines operates on an entirely self-service basis where customers pay to use washing and drying machines by inserting coins. Their minimal staffing requirements usually result in lower operating costs for you. In turn, it’s often the most affordable for your customers.

Coin-operated laundromat - Zenith Capital

However, you may still need to hire people to supervise and collect coins. Another significant concern is security, which calls for CCTV cameras and coin box guards to prevent theft.

2. Self-service laundry

Like coin-operated setups, operating a self-service laundry franchise in the Philippines involves providing the facilities and equipment for customers to do their laundry. The notable difference is that you have staff to handle transactions and offer assistance. It’s a convenient and flexible setup that’s still relatively affordable but typically requires more space for employees and equipment.

3. Full-service laundry

Perhaps the most hassle-free option for customers is a full-service setup, which offers washing, drying, folding, dry cleaning, and ironing services. Customers only have to leave their dirty laundry and return to pick it up in a few hours or days, so it typically provides a more premium and professional feel.

But for aspiring business owners, it’s generally the most expensive choice because you’ll have to invest in training staff for customer service, operational skills, and quality control.

The Costs of Running a Laundry Business Franchise in the Philippines

The Costs of Running a Laundry Business Franchise in the Philippines - Zenith Capital

While you might want to start planning immediately, establishing a laundry franchise in the Philippines entails prices and costs that you need to consider. First are franchise fees, which cover your right to use the brand name and access training and support. Some franchisors even package marketing assistance to make spreading the word about your business easier.

You’ll need to invest in washing machines, dryers, folding tables, and chairs, where costs vary depending on the brand and features you pick. After acquiring equipment, you should optimize your space to create a functional layout and set up plumbing and electrical fixtures. 

Finally, and most importantly, you must obtain the necessary permits and licenses from local government units to operate legally.

Beyond upfront costs, there are ongoing operational expenses to consider, including detergent and other cleaning supplies, equipment maintenance, and utility bills. For this line of business, expect your water and electricity costs to be significant. And if you’re hiring employees, you must also factor in their wages, benefits, and training.

Fortunately, you can lower laundry shop franchise prices in the Philippines through careful planning and budgeting. Consider negotiating with your franchisor—they might be amenable to lowering franchise fees and other initial costs. You could also look for discounts from equipment suppliers or buy in bulk to save more. Additionally, opt for energy-efficient appliances to lower your utility bills over time.

Factors to Consider When Choosing a Laundry Business Franchise in the Philippines

Factors to Consider When Choosing a Laundry Business Franchise in the Philippines - Zenith Capital

The following considerations can help you set up a successful laundry franchise with minimal challenges or difficulties.

Location and demographics

Check your local competitors. Are there many laundry businesses in your area? If so, you might have to adjust your offerings to stand out. You also want an accessible location with high foot traffic of busy people to maximize your reach.

Market analysis

Understanding the local demand for laundry services through thorough market research can also tell you whether your area is an excellent place to set up shop. Identify customer preferences and unmet needs to differentiate your business and attract customers more effectively.

Franchise costs and fees

Thoroughly evaluate the initial investment required before committing to a laundry business franchise. Compare franchise fees and other associated costs with potential franchisors to identify which aligns with your budget and financial goals. You might even need to secure a loan, like DTI SME loans or government business loan.

Support and training

Research potential franchisors’ history of providing comprehensive support to their franchisees. 

Select a franchise that provides training and ongoing guidance to help you effectively manage the challenges of running a laundry business.

Establish a Successful Laundry Franchise with Zenith Capital

Choosing a laundry business in the Philippines requires careful consideration of your environment, budget, and market. With these factors in mind, you can make better-informed decisions that will take you closer to your entrepreneurial goals. You must also keep in mind of business loan rules to ensure your sucess.

As a part of your planning process, you must ensure you have the necessary funding to bring your small business’s growth strategies to fruition. Here is where Zenith Capital, a top lending company in the Philippines, can be a valuable partner.

With the help of our enterprise and SME loans, you may get the financial support you need by taking advantage of our flexible financing solutions tailored to your unique circumstances. Contact us to learn more or apply for a loan today!

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