Getting-Started-Manual by xiaoyounan


									The Guide to Buying or
Building a Laundromat

               Provided By:

    MAGIX Laundry Systems
     A MAGIX Management, LLC Company
Getting Started - Importance of a Business Plan

Lack of planning remains a principal cause of business stagnation and failure. Although every laundry owner
plans in some way, shape or form, those who take the time and effort to develop a detailed, carefully
researched, and well formulated and thought out business plan and use it to guide their business can
increase their chances of success.

Business plans are no longer only being used when buying and selling stores. They are now commonly being
used as a day-to-day business guide to keep a store in line as it attains its goals and successfully carries out its
mission. A well-prepared business plan not only serves as a document for use in monitoring current financial
position, but also provides non-financial information vital to making decisions about a laundry’s performance
and growth.

The plan should present a clear picture of the store that can be used in these critical areas.

Elements of a Business Plan

    1. Guidance. A well prepared and thought out business plan furnishes data that indicates what might lie
       ahead, allowing the owners to work with foresight rather than hindsight. In effect, it serves as a road
       map that details the starting point, direction, and destination of the business. By indicating
       deviations between the expected, and actual results, a business plan documents the operating
       effectiveness of the store, which in turn helps the owner to establish future performance goals.

    2. Control. When a problem or crisis arises, information contained in the business plan is an invaluable
       tool for developing contingency strategies and monitoring their implementation. The profile details
       company strengths and weaknesses as well as threats and opportunities. Objectives are also clearly
       defined and stated. By relying on the business plan in a crisis situation, the owner should save
       valuable time that would have otherwise been spent compiling data. Therefore the owners can take
       prompt action while preserving the planned course for their business future.

    3. Internal Communications. A business plan has traditionally been used as a communication tool; for
       informing potential investors and lenders about the history and progress of a business. However, the
       plan can also be used to brief attendants as to the direction in which the store is headed. When new
       hires are informed of the company’s objectives and tools needed to obtain them, the new employee
       gain a better idea of what must be accomplished and how their jobs relate to the overall progress of
       the company. For top management, an updated business plan serves as an ongoing memo outlining
       the company’s changing needs.

    4. Financial Information. The quality of a business plan’s financial statement plays a key role
       determining both present and future financial demands on the company. It should provide
       information on a wide range of financial concerns such as budgeting, possible cash surpluses or
       shortfalls or the need for external resources of funds.
Preparation of a Business Plan

While there are many “off the shelf” computer programs that can easily assist you in the preparation of a
business plan, the following is an overview of what a viable business plan may include;


    1. Cover sheet

            1. Title of the business plan

            2. Owner/potential owner name

            3. Business name

            4. Logo if applicable

            5. Contact information (address, phone, email, fax, etc.)

            6. Date prepared.

    2. Executive summary

            1. Business concept

            2. Financial features

            3. Financial requirements

            4. Current state of business and age of business if applicable

            5. Principal owners and key personnel

            6. Major achievements

    3. Table of contents for the business plan

Business Description

    1. Industry overview

            1. Brief description of the coin laundry industry

            2. Present and foreseeable challenges and opportunities

    2. The Company

            1. Mission statement

            2. Type of business

            3. Legal structure
             4. History

             5. Principals and their experience

   3. Services Provided

             1. What make this business unique

             2. What will make this laundry successful and profitable

   4. Position in the Marketplace

   5. Pricing strategy

The Market

   1. The environment in Which the Laundry will Operate

             1. Who are the customers

             2. How many potential customers are in your market

             3. What trends are developing within the market

   2. Competitors

             1. Who are they

   3. Why Would Potential Customers Prefer You

Development and Production

   1. How are the Services and Products offered?

   2. What is the process?

   3. What does the process cost?

             1. Labor requirements

             2. List of monthly expenses

             3. Capital requirements (i.e. equipment, and building etc.)

Sales and Marketing

   1. Strategy for reaching potential customers and turning them into actual customers.

   2. Advertising plans

   3. Special methods for making sales (such as commercial accounts)

    1. Business managers

            1. Names

            2. Responsibilities (be specific)

            3. Experience and expertise

    2. Outsourced services such as legal counsel, payroll, and accounting.

    3. Owners of the business

    4. Board of directors or board of advisors

Financial Information

    1. Full Set of Financial Statements

            1. Balance sheet

            2. Income statement

            3. Cash flow statement

            4. Historical data if this is an existing business

            5. Projected financial statements

    2. Discussion of the Risks that the Business Faces

    3. Funding Request

            1. Type of funding (loan, lease etc.)

            2. Use for funding

            3. Lenders interest rate, and expected terms

            4. Downside risk and the upside potential

This plan should be continuously used, reviewed, and updated. If properly created and updated, should the
need for outside financing arise, this business plan becomes a complete financial proposal that will meet the
requirements of most lenders.

The Importance of a Good Distributor

Choosing a Good, Reputable, Full Service Distributor is one of the most important decisions that a coin
laundry owner will make regarding the future of the coin store. Over the years, the role of the Distributor has
evolved into becoming an integral part in the success of the store as well as the storeowner. This is true
because a Distributor is providing knowledge, support, financing, after sales service, laundry design,
demographics and their analysis, as well as marketing and equipment.

Commercial laundry equipment of the type now used in today’s coin laundry, is not a product that can simply
be brought to a facility in a truck, taken out of the box, plugged in, turned on and be ready to go. The
equipment, in many cases weighing thousands of pounds will need to be removed from the truck by qualified
and properly trained individuals, rigged into the proper place, properly leveled, bolted down and connected
to the proper utility supplies. Once this is all done, the equipment will need to be functionally tested to make
sure that all is as it should be. Most equipment failures and problems can be traced back to an improper
installation. Improperly installed machines typically will experience vibration problems that can affect other
things, as well as premature bearing and seal failure. Generally speaking, any moneys thought saved by
either buying direct from the manufacturer and installing the equipment yourself or buying from other than a
qualified full service distributor will be spent on repairs related to a faulty installation.

Before purchasing a product, here are a few questions you may wish to ask of a Distributor

    1. Do they have a properly trained and qualified installation staff

    2. Do they have a properly trained and qualified Service staff that will provide after sales service

    3. Do they have a fully stocked parts department

    4. How long have they been business

    5. A list of references

    6. Are they properly licensed and insured

Before purchasing a product, here are a few services that the distributor should provide you

    1. A survey examining the store’s specific needs and requirements, and determine the goals of the

    2. A demographic study if applicable in order to determine feasibility of the coin laundry

    3. Evaluate this information, and recommend the right products to suit the needs of the store

    4. Check installation parameters. Will the equipment fit through the doors for example. Are the utilities
       proper and adequate? Is the floor the right type and of sufficient strength and thickness. Will the
       equipment fit in the assigned space properly

    5. Recommend the right equipment manufacturer

    6. Check delivery times of the equipment from the manufacturer

    7. Answer all questions posed to them regarding the equipment being purchased as well as why this
       particular equipment is right for the situation
Another reason to consult with a qualified professional is to gain information based upon their experience in
the industry. This experience with product and the industry make the distributors professional opinion a
valuable part of the decision making process.

After the sale of equipment, the distributor should also do the following:

    1. Order the proper equipment, with the correct voltage and specifications from their respective

    2. Coordinate the sale with the financing institution if financing is sought

    3. Continuously check the status of the order with the respective manufacturers in order to ensure
       timely delivery of the equipment

    4. Accept the product when delivered, either at the job site or their warehouse, meet the delivery
       truck, properly and carefully unload, and inspect the products. Rig it into the store and set it in place.

    5. If contracted to do so, properly level, bolt down, and install the machine. This should also include
       proper testing of the equipment after installation

    6. Train owners on proper use and preventive maintenance procedures that they may need to perform.
       Provide a maintenance schedule for the equipment

    7. Provide qualified, factory trained repair service when needed, including warranty service as
       negotiated when the equipment was purchased

    8. Provide warranty parts through the respective manufacturers

    9. Assist you with lease negotiations if required

What to look for in a good Distributor

When selecting a supplier, always use prudence. Check references requested, and provided with the Better
Business Bureau, banks, credit bureaus, or Dunn & Bradstreet. Also check with the Coin Laundry Association.

When selecting a distributor, look for the following qualities found in many credible businesses both inside as
well as outside the coin laundry business. The distributor should meet the following criteria

    1. Offers honesty, integrity, and credibility in addition to prompt and professional service

    2. Attends industry activities and absorbs as much information as possible

    3. Continuously seeks ways in which to deliver highest quality service to customers, including the use of
       properly trained and equipped service and installation staff

    4. Offers reasonable financial assistance resources

    5. Helps to make decisions that are good for your business
    6. Treats the owners investment as if it were their own

    7. Provides regular service training programs on the equipment that they provide

    8. Maintains an ample supply of spare parts on hand for quick delivery

    9. Has superior knowledge of the industry and the products that they represent

    10. Furnishes if requested, floor plans, proforma work sheets, and meets with construction personnel
        with regards to the store as a part of the full service provided

    11. Possesses knowledge of demographics, and the ability to interpret them accurately

The relationship with the dealer should be a working partnership for the future. Choosing the right
distributor may well impact the store’s financial future.

No matter what the purchase, price is only one factor when evaluating the value of the product.
Research distributors in order to find the one that illustrates the “Value” in the product that they offer. Not
all distributors are the same, be sure to choose carefully in order to find one that will meet your long-term

A successful relationship with your distributor should result in a long-term collaboration that will enable your
store to be even more successful.


Every retail business must have a location from which to do Business. Of course we would all like to have the
perfect location. In order to ensure that you choose a viable location for your store several things should be
considered, and many avenues of information to be used. One of the most valuable assets you will find in
order to assist you in this endeavor, is choosing and working with the right Distributor.

When beginning you search for a location, consider the type of store that you desire

    1. Should the store be in a rural area, a suburb, or urban area

    2. Would you prefer a free standing building, a strip mall

    3. How much parking you would like to have (7 spaces per 1,000 SF is desirable)

    4. The size of the store (the average size is 2,400 SF)

    5. Will the store be attended or unattended

    6. Will you offer other services as additional sources of income

    7. Will the site have adequate utilities available (important when retooling)
Demographics studies are a critical part of the research involved in selecting a site for your store. This is used
in order to determine the potential customers available to you within the market area for your store. The
Distributor will be able to assist by evaluating the demographics in the area, as well as many other items in
order to assist you. A few of the items that an in depth demographic study will determine are:

    1. What is the total population of all people living in the market area? (1,2 & 3 mile radius)

    2. What percentages are renters, condo owners, homeowners, etc? (the higher the better)

    3. What is the median income? (less than $35,000 per year)

    4. What percentages are single, or single parent families, etc?

These are only a few of the valuable pieces of information that a demographic study will show you.

Make yourself aware of the competition that is in your intended market area, and what services that they
provide, as well as the type of store, the condition of the store, and the product mix. Is it a coin store, or card
store? Is it well lit? Is it well kept or run down? Do they have adequate parking?

As with any retail business, the store should be as visible as possible in order to attract as many customers as
possible. Some things to consider:

    1. Can the store be easily seen from the road

    2. How much of the store front are windows

    3. What kind of signage may be used

    4. How much frontage will the store have

Make sure that the store will have an adequate supply of parking in order to satisfy your drive in customers.
Ideally, at the door.

Adjacent businesses
Are the businesses surrounding the store conducive to the success of your store?
Are they run down?
Do they appear successful?

Negotiating a Laundry Lease

Next to the careful selection of a Distributor, a good lease is probably one of the next most important steps
toward your coin laundry purchase.

It is often stated, that the life of a coin laundry business may be only as long as the lease. Recognizing this,
can lead to the realization that the store lease is probably one of the most important documents the owner
will sign. And the terms of the lease are one very important factor in determining the longevity of the

The object of a successful lease negotiation is to get the best lease agreement possible. To this end, obtaining
legal counsel is highly recommended before signing a lease. Lease attorneys are specialists and are
experienced in the art of lease negotiations and avoiding many possible pitfalls. As the end result of these
negotiations, and subsequent lease have a direct impact on the profitability of the business it is important
that the owner become and remain involved in the lease negotiations. Ideally, the lease should be neutral in
nature (not slanted in the landlord’s favor).

Here are some key negotiating tools to become familiar with:

    1. Start low. Do not immediately name the target price. Leave room to make concessions.

    2. Don’t give in too easily. While there will be give and take, and you will need to make concessions,
       don’t concede them easily.

    3. Be patient, and take your time. This is an important decision, and must be made with careful

    4. Try getting a longer lease in trade when finding it necessary to make a concession.

    5. Try to find out what the other sides “must have” price is. This may give you a bit of additional
       leverage. Remember, knowledge is power.

    6. Be friendly. Being confrontational often is counterproductive to obtaining the best deal.

    7. Keep your distributor involved, as they may have knowledge vital to your lease negotiations.

    8. The higher the cost per square foot you pay, the harder it is to be profitable.

Lease term
The term of the lease is the period of time that the lease will remain in effect. The objective for the coin
laundry owner should always to get as long an initial lease term as possible, at the least, 10 years minimum.

Due to today’s economic climate, long term financing is the norm rather than the exception. In many cases
financing of 7 years or more are normal for new equipment purchases or a total store purchase.

Protect your future needs
Consider requesting as a part of the lease agreement, an option to rent more space should you need it later.

Other Important Considerations
Clauses you should try to have in your lease.

    1. Renewal option. Try to obtain a renewal option now from a position of strength rather than at the
       end of your lease term when you are left with fewer options.
    2. Cancellation option. This option protects the owner should you need to vacate the premises before
       the lease expires.

    3. Option to buy. This can obviously be a very profitable option for you should you choose to exercise it.

Store Planning and Layout

Before you begin breaking ground on a new store, or begin a remodel of an existing store, take stock of the
site, and analyze the business potential.

All stores should be designed with the intention of maximizing the profit per square foot potential.
The store should be designed to provide profitability in conjunction with customer convenience.
Working with your distributor can help you with this, as they will be able to provide a Proforma analysis of
the potential mix of equipment and services that will be offered.

Some other things to consider when designing your store:

    1. Doors. Remember, you want to make it as easy and convenient as possible for your customers to get
       into your place of business. Make sure that they are of adequate size, and of sufficient numbers

    2. Aisle space. Always make sure that the aisle spaces are wide enough for customer access with carts,
       but not excessively wide or you lose valuable floor space.

    3. Workflow. Keep in mind that this is a business, and the idea is to get your customers in the door,
       served and out the door in order to serve the next customer. A store with a smooth work flow design
       will be more enticing to the customer

    4. Large capacity washers. Make sure to put the large capacity washers close to the front of the store.
       This is more inviting to customers with large loads, that having to go to the rear of the store, or
       worse yet, not seeing them at all.

    5. Folding. Make sure to have adequate folding area.

    6. Lighting. Be sure to have an adequate supply of lighting in order to make your store as bright and
       inviting as is possible.

    7. Bulkhead spacing. When designing the spaces for the washers, be sure to leave adequate space for
       utilities, and service.

    8. Equipment. Work closely with your Distributor in order to select the proper equipment type, and the
       proper equipment mix in order to make your store as profitable as possible.

A few other tips to consider:

    1. If possible design the laundry allowing unobstructed visibility from the front to the back

    2. Consider the use of mirrors to make the area appear larger than it is
    3. Install a floor that is durable, and non-slip. Remember, this is a laundry and there will be spills

    4. While construction is proceeding, have signage available showing what business you are opening or

Grand Opening

One of the very best ways to draw attention to a new, or newly renovated store is to have a Grand Opening,
or Grand Reopening. For years this has been a tried and true method used by companies small and large in
order to draw in their initial customer base. A Grand Opening need not be a large gala event unless desired,
but it should be an event nonetheless.

A Grand Opening also gives a new store a much-needed “Kick Start” in order to get started. Simply opening
the doors, and hanging up a sign do not give the exposure that a new store needs in order to bring in the
customers that are needed.

Preparations are a key factor in a successful Grand Opening The main objective of a Grand Opening is to
make the public aware of you, and to draw away customers from your competition. While they may only
come in to take advantage of some possible pricing incentives that you may be initially offering, this is a good
way to win the customers over. Remember, first impressions are important, so make the customers feel


Once the construction of the business is well underway, and you have a good idea of when the store will be
ready to open, it is time to begin planning and preparing for the Grand Opening. Again, work with your
Distributor, as they will have a wealth of knowledge about this due to their experience in the industry.

Signage is a very important factor in hosting a successful Grand Opening, so make sure that you use an
adequate supply. Hang large banners where possible advertising your event, and use direct mail as well.

Remember that you are making the all-important first impression on your new customers, so make sure that
the store is in tip top shape for the event.

Grand Opening Day

While the actual Grand Opening will probably last for quite some time, what with specials and what not, you
should choose one weekend in particular in which to host the “Main Event”. This is the times that you will
want to advertise in your direct mail, Banners, local papers, etc. This should be a weekend after the store has
been up and running for a time in order to work whatever kinks there may be out of the equipment and
building. Be sure to make the store as festive as possible for the big day. Consider balloons, streamers, etc.
Have all attendants working, even if it seems slow, in order to pay as much attention to each customer as
possible. Remember, you want them to feel welcome, and special. Have each customer greeted as they enter
the store.

Give-aways are a great tool. Consider popcorn, hot dogs, soda, and inexpensive trinkets in order to add to
the festivities.
Consider asking a local radio station to attend for the event. Many will even provide their own contests and
give-aways if they participate.

Special Pricing
Pricing specials are probably one of the more popular and effective ways to bring in new customers to a
Grand Opening. While making it an attractive incentive, resist the temptation to go overboard. Consider a
special price on only one size machine for the event, or something of that nature.

After a reasonable length of time, you will need to revert this back to normal pricing.

Operating the Business

Cash Collection

Veteran coin store owners know that there is an art involved to the cash collection process. There are a few
generally considered “Unwritten Rules” to follow in order to prevent theft and vandalism to coin changers
and coin vaults.

    1. Take precautions when collecting cash or coin

    2. Take precautions to keep keys and locks safely away from criminals

    3. Take precautions preventing “Silent Partners” which can be detrimental to the bottom line if

Collection times

The main precaution to take when collecting money from the bill changers or coin vaults is a very simple one,
Vary the collection times. Do not be predictable. Many storeowners can be found in their stores at the same
time, day after day, after day, week after week collecting money from their equipment. Thieves are clever.
They will watch and observe a store for a while before deciding whether or not to rob it. If you are
predictable, and they know that they can expect you to be collecting at a certain time, on a certain day, it
makes it much easier for them should they decide to rob you.

Vary your collection times. Do not set any pattern for collection times. Some owners like to collect when the
store is busy, feeling that there is safety in numbers. Some prefer to collect when the store is empty. Either
way works, but no matter what, you should always use care, and remain aware of your surroundings at all
times. Do not dawdle while collecting.

When collecting from the bill changer do so quickly and as inconspicuously as possible, especially if your bill
changer loads from the front. If possible, have a rear load changer installed. Always count the money behind
closed doors. Never count it where you are visible. Many stores have a secure room built in where the
counting may be done in private in a secure area.
Key Control

The importance of proper “Key Control” is very often overlooked even though countless coin stores are
currently losing money at the hands of “silent partners” who have keys due to lack of proper security on the
part of the owner. Professional thieves, and yes, they are professionals, can very easily duplicate most keys. If
one key opens all coin vaults within your store, then if a thief were able to duplicate that one key, they would
have access to all of the money within your store. Sadly, this happens more often then we care to think
about. While not practical, in the best of worlds, you would have a different key for each lock within your
store. Another way to minimize the exposure is to have a different key for each different model machine, or
for each different bank or bulkhead of machines. If you have multiple bill changers, always make sure that
they are keyed differently.

Be careful of labeling your keys as well. Consider an easy for you to remember color-coding system instead.

If you purchase an existing store, one of the very first things you should do upon taking possession, is to
either re key, or replace all of the locks. Not only the doors to the business, but all of the coin vaults and bill
changers as well.

When you replace your locks, consider investing in high security locks (MEDECO or BEST) for the coin vaults
and bill changers. While it may cost a bit more up front, the additional security provided is well worth the

Effective key control is probably one of the most important aspects of a sound internal security policy.
Know where your keys are at all times. Keep in mind, that if you entrust an employee with the keys, you may
need to replace the locks in the event that the employee ceases to work for you.

Human Resources

Today’s Coin Laundry Owner needs to develop and implement the appropriate skills with regards to hiring,
firing, properly training and motivating employees as well as problem solving. You will also need to become
proficient in scheduling, organization, and financial analysis.

In the customer’s eyes, your employees are an extension of yourself. The attendant performs daily functions
vital to the success of your business. However, you as the owner must provide proper direction and

As the Owner, an important step in setting up your business to run smoothly and profitably is to find and hire
capable and personable employees. You will then need to train these employees. You cannot assume that
they will know what you expect of them.

Organization helps to create more profits for you. It is essential to become organized, because you will find
that you cannot do everything yourself, and will therefore need to delegate some tasks and responsibilities
to others.

Because a Coin Laundry is basically a “self service” operation, fewer employees are required in order to
efficiently operate your store. A good attendant will promote better customer relations with your customers
and also promotes respect for your washers and dryers. In many instances, you may wish to develop a “drop
off” laundry service for your attendants to operate.

An attendant needs to be a productive employee, and not someone who simply looks after the store. Use the
attendants as sales persons, and increase your business.


    1. To properly train and supervise your attendants, as they are your direct representatives to fulfill all
       pertinent responsibilities of your business to your customers

    2. Provide a safe and pleasant working environment

    3. Be honest with your employees

    4. Provide growth opportunities

    5. Motivate your employees

    6. To provide an environment that is as clean possible, both for the customers and the employees

    7. Reward excellence

    8. Treat your employees as you would wish to be treated

    9. Treat your employees with respect

    10. Be fair and impartial when dealing with employees

    11. Use proper management skills in dealing with each employee

    12. Fully explain to each employee company policies and procedures

    13. Ensure that a proper and businesslike atmosphere exists, and that employees are dressed in attire
        appropriate for the job

    14. Listen to your employees and customers, and request honest feedback

    15. Make sure that each employee knows exactly what to do in the case of an emergency situation.

    16. Scheduling of employees work hours and days.

Important telephone numbers

Make sure to post all important telephone numbers such as hospital, fire, police, landlord, etcetera in an
easily accessed area.

Keep all employee telephone numbers on file.

Keep a file on hand of all suppliers.

Remember when creating or changing a work schedule, that your employees have lives other than at their
place of employment. Make sure that you make and post changes to work schedules in plenty of time for
your employees to arrange their lives.

By allowing them plenty of notice you will create less hard feelings, and can also be expected to provide you
in turn with plenty of advance notice in the event that they may need time off unexpectedly for one reason
or another.

Make sure that you have, and your employees understand, a policy with regards to time off.

Hiring of employees

The hiring of employees is a task that should never be taken lightly, and there are many State, Federal, and
Local laws and statutes to protect the rights of employees. You should make yourself familiar with them.

Avoid Discrimination when hiring. Be sure to make yourself familiar with laws and regulations regarding

The proper candidate may be of either gender, and providing that the applicant is of legal age to work at the
tasks assigned, age should not be a major factor. They should be neat in appearance, personable and
outgoing, as well as intelligent. Remember, the attendant needs to be a people person, as they will work very
closely with your customers.

Before actively searching for an attendant for your store, be sure to determine your needs in an attendant.
Would it be beneficial to have them live in the proximity of the store? Would multiple language skills be
beneficial to you?

Advertising for an attendant may be done in many ways, such as an ad in a local newspaper, word of mouth,
bulletin board posting, etcetera. When advertising for the position, be sure to list the type of job, as well as
the job description and responsibilities. Note whether the position will be full time, or part time, and any
other information that you feel would be pertinent.

Employee Handbook

An Employee Handbook is a basic necessity when overseeing staff. A handbook improves employee
management and communication by eliminating any “gray areas” that may otherwise exist. It also ensures
that everyone is treated fairly, which is especially important when there are more than one managers or

These are some specific sections that you may wish to include in an Employee Handbook;

    1. Introduction and welcome to the company

    2. The mission statement of the company
    3. The business history

    4. Organizational chart for the business

    5. Equal opportunity employer statement

    6. Employment at will statement

    7. Harassment policy

Other topics may include;

    1. Benefits

    2. Discipline, conflict resolution, and dismissal procedures

    3. Training and orientation

    4. Job performance

    5. Pay information including pay scales, overtime, time recording, bonus or incentives if applicable,

    6. Policies regarding smoking, dress codes, conduct, customer interaction, etcetera

    7. Time off

    8. Work policies, such as meetings, job descriptions, and hours of work

This handbook should also include a disclaimer stating that it is not, and does not constitute a contract of
employment. Any reference to permanent, or continued employment should be eliminated.

Be sure to have the document checked by an attorney or legal advisor to ensure accuracy, and eliminate any
potential problems or pitfalls.

Review and update the manual periodically.

Once the document is written, reviewed, and distributed to the employees, be sure to have each employee
sign a statement that says that he or she has read, and understands all of the policies written in the
handbook. Be sure to keep a copy of these signed statements, in the event that they are needed in the

The Attendant and Customer Relations

As your direct representative, the attendant is a very important person within your business. How your
customers view your coin laundry is more often than not the direct result of the attendants efforts, and

Your coin laundry needs to remain as clean and bright as possible at all times. A recent survey indicated that
a well-lit laundry is one of the single most important factors when a potential customer considers using any
coin laundry. The same survey also placed the importance of cleanliness well above pricing when choosing
where to do their laundry. Keeping your laundry clean is one of the very important functions that your
attendant will perform.

Your attendant, as well as yourself, should take care to be friendly and courteous to your customers. Each
customer should be greeted with a friendly smile as they come in the store, and ask if they would require or
appreciate any assistance. They should also be thanked for coming in, by name if possible, and made to feel
important to you.

Attendants should also remain attuned to the surroundings. They should keep their eyes and ears open for
any sign of trouble or unrest. They should also remain on the lookout for other problems, such as spills,
trashcans requiring emptying, trash on the floor or a customer in need of assistance. This may mean
something as simple as a customer attempting to enter the store with their arms full, and the attendant
opening the door for them.

The attendants should also keep the store organized. Keep empty carts arranged in their assigned area,
rather than scattered all over the store.

While remaining friendly with your clients is a must, discourage lengthy discussions and conversations during
working hours. Keeping the store clean and tidy as well as the other responsibilities are more than enough to
keep your attendants busy.

Do not offer unsolicited advice to customers as it may offend them.

Make sure to assist, and thank the customers as they are leaving the store, and invite them to return.

Discourage friends from “dropping by” to visit with the attendants.

Ensure that the attendants place equipment with a problem, “out of service”.

Refunds, and Miscellaneous expense summary

Whenever refunds are given to customers, or whenever petty cash money is used to purchase miscellaneous
items such as cleaning supplies, etcetera, a “Refund and Miscellaneous Expense” form should be used. A
sample form is shown on the following page. The attendant must fill out the date, time, customer name,
machine number, and amount of the refund.


Equipment Maintenance

Your laundry equipment itself will also require attention. Most of the information that you will need may be
found in your equipment manuals that were provided with your machines. Your Distributor will also be
happy to provide you with information on equipment upkeep and maintenance.
The main point here is to keep all of your equipment up and running at its peak efficiency in order to keep
the customers moving through the store. Prompt repairs, and proper maintenance will keep your store more

Preventive maintenance and continued proper upkeep will in the long run save time and trouble later down
the road. For example, a properly cleaned and maintained dryer will have a much longer, and more profitable
service life, than a dryer that is ill maintained, and dries poorly. This will keep your customers happy, as they
want to get in, get their clothes done, and then go on about their business. Develop, and adhere to a daily
schedule in order to inspect, clean and repair equipment as needed. You will find that most repairs within
your store will be easily taken care of if you are just a bit handy.

In order to ensure that your equipment remain in peak operating order, and maintain customer satisfaction,
your equipment should be checked on a routine basis to make sure that they are clean, in proper operating
order, and free of safety hazards.

The following are separated into safety checks, and maintenance checks, and are not intended to be all
inclusive, but rather to point out some of the basic considerations for you to be aware of.

Safety Checks

When operating a coin laundry business, you are promoting and offering your facilities and equipment to the
public. In doing so, you have certain responsibilities to maintain these facilities and equipment in a safe and
proper working order.

Safety cannot be overemphasized. While you cannot predict what customers and or children will do in or
around your equipment. Your ongoing attention to the users safety is of the utmost importance. Prevention
of injuries and accidents can mean the difference between the success of your business, or its ultimate
failure. One personal injury lawsuit could in reality mean financial disaster for you and your business.

Washer safety checks

       Check all door locks and safety devices on a daily basis.

       Check for leaks.

       Check to make sure machines are properly grounded.

       Check for any sharp edges

Dryer safety checks

       Check for proper door switch operation daily.

       Make sure that the dryer shuts off properly.

       Check for possible gas leaks.

       Check for excessive lint accumulation.
       Check for overheating of unit

       Check for proper grounding of dryer

       Check for any sharp edges

Routine equipment checks

       Check washers for proper draining, keeping in mind that most “no spin” problems are related to poor

       Check washer inlet hoses and screens

       Check the condition of washer and dryer drive belts

       Check the condition of washer and dryer door gaskets

       Check dryer lint screen for tears or holes

       Check dryer vents for lint build up, keeping in mind that most “no heat” problems are vent related

Other Equipment Items of Interest

Keep the outside of the washers and dryers as clean and bright as possible at all times.
Stainless steel washers may be cleaned using many methods, one of which is to wipe the machines down
using a small amount of vinegar in a pail of clear clean water. Do not add soap to the water.
Do Not use abrasives to clean the machines, as this will permanently scratch the finish.

You may also wish to polish the finish and make it more stain resistant and attractive using a stainless steel
polish. Over sudsing of the washers may be controlled by adding a small amount of liquid fabric softener to
the washer.

Dryer exteriors may be cleaned by wiping the machines down using a small amount of mild soap in a pail of
clear clean water.

Insurance Coverage

In order to protect your investment, you should also make sure that you are properly insured. Fire insurance
for example should be considered, and may also include other perils such as wind, hail, explosion and
vandalism, for an additional nominal charge.

Workers Compensation insurance is another must have (if you have any staff).

Liability insurance to protect you in the event of an accident, and in most cases requires a written report to
be submitted immediately following each incident.

Check into Business interruption insurance that could help should something such as a fire should cause the
business to close for an extended period of time.
You may wish to make sure that your storefront windows are adequately covered by a policy as well.

Again, consult with a qualified insurance professional who is familiar with your needs as a coin laundry owner
when seeking insurance coverage.

Clothing Left at Laundry by Customer

Clothing is often overlooked and left at the laundry by customers. Whenever clothing is left and not claimed
by the customer;

Clothing left in the dryer

       If not completely dry, finish drying

       Place garments in bag and label it with the date when the clothing was left

Clothing left in the washer

       Remove from washer and dry the garments

       Place garments in bag and label it with the date when the clothing was left

For items such as the “Odd sock” or what not, consider having a bin or a box in which to place them rather
then bagging and tagging the item.

Many times a customer simply forgets these items for a time, and return for them shortly, or even after a few

Some times items may be left for extended periods of time, even a month or two.
If a customer returns, and inquires about clothing that they may have left on a certain day, show them the
bag, and request identification of the items.

You should keep abandoned articles for at least 90 days in order to allow the owner ample time to retrieve

Never store damp or hot clothing in a plastic bag. This may mildew, and could cause a fire due to
spontaneous combustion.

Laundry carts when not in use should be returned to their proper place.
Laundry carts are not toys, and children should be discouraged from playing with or riding in them

Extra Profit Centers

According to the Coin Laundry Association, 96% of the coin laundries in the United States offer some type of
ancillary service

Extra Profit Centers: Statistics
The ancillary services above are ranked by the percentage of coin laundries that offer the service

Source: Coin Laundry Association 2003 Survey

Getting Started

       Vending is the most popular of all coin laundry ancillary services

       Little or no expense

       Can be rented or leased

       Target market is unlimited

       Minimal maintenance

       Can rent or own

       Use the yellow pages to find contacts

       Soda

       Food

       Arcade

       Laundry Bags / Soap

       Bulk Vending

       Phone Cards

Drop off Service

       Also called Wash-Dry-Fold, Fluff & Fold and Bundle Service

       60 to 70% of laundries today offer this service

       Second in popularity only to vending
       Great way to help offset labor costs

       Can actually pay for attendants

Drop Off Profit Example

Washed by a customer

2 top load washers                        $3.00

30 min. Dry time                          $1.50

Total income                              $3.50

Utility Cost total                        $0.74

Soap                                      0

Gross Margin                              $2.76

Washed by attendant

20 Pounds @ $0.90                         $18.00

1-30 pound washer (cold water)
30 min Dry time

Total income                              $18.00

Utility Cost                              $ 0.32

Soap                                      $ 0.10

Gross Margin                              $17.58

Pay for your attendants
@ 5 Wash, Dry & Fold Customers / day / 6 days / wk = $527.40

Attendant @ $6.00 / hr / 12 hrs/day 7 days/wk = $504.00

Commercial Accounts

       Maximize your equipment usage

       Maximize existing labor
       Maximize your profits

Target Market

       Look for accounts that are too small for large commercial laundries

       Pick up and drop off services are a must

       Must be willing to extend credit / invoicing

       Look for items that will not require pressing or finishing

       Look for items that do not require specialized detergents or extensive spot removal

       Top ten Accounts

       Doctor’s office (excluding blood born pathogens)

       Beauty shops

       Dentists (excluding blood born pathogens)

       Colleges

       Summer camps

       Resorts (Condo / RV)

       Moving companies

       Small hotels

       Local sports teams

       Equestrian


       Marketing

       Separate identity for “laundry business” recommended

       Yellow pages ad

       New business cards

       Professional brochure or list of services

       Prospect or mailing lists

       Offer specials to get started
Car Wash

      Similar demographic as coin laundries

      Good cross over business

      Bays costs $65,000 - $75,000

      Automatic Bays cost $150,000 +

      Much more maintenance required vs. laundries


      23% of customers questioned said they would use a minimart in a coin laundry

      Initial inventories of $5,000 - $7,000

      Soap, candy, soda, water, chips, etc

      Purchase display and cash register

      Need to cross train attendants

Mail Box Rental

      Start cost is just the cost of the boxes

      Must register as Post Office Sub Agent

      Usually rent each box for $8 to 10 a month

      Rental is more expensive than Post Office, but people will pay more:

      The box will have an actual street address, not a P.O. Box number

      Can accept UPS/other overnight delivery

      Wireless Internet

      Tanning

      Bar

      Check Cashing

      Dry-cleaning

      Rug Doctor Rentals

      Coffee Shop
       Any other service that can add value


       Understand your market and your stores capabilities

       Create new business plans or add to existing plan

       Allow your existing space and staffing to work for you

       Offer your customers more

       Outperform your competition

Marketing Your Laundry

Marketing your laundry can be kept simple. Just be sure it’s well thought out before, during, and after the ad

The Four P’s of Marketing

    1. Product

            1. What are your strengths

            2. Size

            3. Cleanliness

            4. Technology

            5. Big machines

            6. Other

    2. Pricing

            1. Specials, promotion

    3. Promotion

            1. Actual advertising

            2. Be repetitive

            3. Keep track of customers during promotional periods

            4. Try new things

    4. Placement

            1. Understanding your market
             2. Who are your target customers

             3. What is your trade area

             4. Metro vs. rural

Who are your customers

      Gender

             o   38% male; 62% female (Industry average)

      Age

             o   37 years is average

      Income

             o   $32,000 is average

      Household Size

             o   2.6pp

      Average expenditure per visit is $10.70

      Wash an average of 11.6 loads per month

      64% visit the laundry once per week

      83% live less than 1 mile from the nearest store.

Who are your customers

      Core Customers

             o   Those who use your laundry on a regular basis

      Secondary Customers

             o   Renters who use your services occasionally

             o   Homeowners who use your service occasionally

      Other target customers

             o   Students, small business, senior centers, etc…

A few marketing approaches

      Inside Marketing
      Punch cards, free wash tokens, give-a-ways

      Outside Marketing

      Direct mail, door hangers, register receipts

      Make sure your store is the best it can be before starting

      Chose your target customers

      Each new customer could bring in $556.40 per year

      $10.70 x 52 weeks = $556.40

Inside Marketing Budget “Rule of Thumb”

      1.5% - 2.0% of gross

Outside Marketing Budget “Rule of Thumb”

      2.0% - 3.0% of gross

Find ways to measure success

      Implement ways to track customers before, during and after the ad.

      Ask customers how they heard about the your store.

      Don’t give up

      As you will see in the next section on advertising, it takes repetition and consistency for your
       message to take hold.

Advertising: Techniques

   1. Any advertising is better than nothing.

   2. Use the word “Free” (With restrictions of what free means.)

   3. Use “half price wash” instead of $.75 wash.

   4. Use A LOT of white space in your ad.

   5. Use only a few words (Keep it simple).

   6. Always include your store name, address, phone number and hours of operation.

   7. Keep everything positive.

   8. Always proof read your ad.

   9. Be repetitive!
Most advertising experts agree that an ad needs to be seen seven times before a person will act on it.

The Ad Campaign: Print Ads

Register Receipts

       Register receipt coupons are an inexpensive way to reach a lot of potential customers quickly.

       Most registers of tape will offer 100,000 coupons.

ValPak Coupons

       Most common in the laundry industry is to create one in Spanish and one in English.

       ValPak is a little more expensive, but using shades of one color will save money.

Direct Mail

       Remember your stores four P’s of marketing

       Measure results one customer at a time

       $500 per 1000 to print (2-color) and postage.

Advertising: The Basics

       Make your business a place were customers will want to stay until their chore is done.

       Cleanliness

       Safety

       Personal Touches

       Friendliness

       Video Games

       Other Amenities

Sample Forms
                                                         Confidentiality Agreement

                                        In connection with the possible acquisition of the following businesses:

                               _______Store address goes here__________________________

The undersigned prospective purchaser(s) (the "Buyer") hereby requests confidential information, currently and from this time forward. Buyer hereby
acknowledges that the Seller first provided such information to the Buyer. In consideration of having provided such information, the Buyer hereby

1. The Seller will be providing confidential information (financial statements, sales/marketing literature and other information) to the Buyer solely for
the purpose of evaluating the company being sold. It is further understood that this confidential information shall not be used for the purposes of
gaining or detecting any trade secrets or any other competitive advantage.

It is hereby agreed that this confidential information including any analyses or other documents incorporating confidential information, will not be
used by us or our representative (including our counsel, accountants, appraisers, and investment bankers) in a way that is commercially detrimental to
the business, and that such information will be kept confidential. We shall be responsible for any breach of this agreement by our representatives, or

All copies of any information provided shall be promptly returned to the Seller upon request.

2. Unless we agree otherwise in writing, we will not disclose or reveal any proprietary information for five years from the date to any person(s) or
entity(s) other than our employees or representatives who are directly participating in the evaluation of this information for any purpose other than in
connection with a proposed acquisition. Any of our employees or representatives who have knowledge of any proprietary information are also
covered under this confidentiality agreement.

3. If we decide that we do not wish to pursue the proposed acquisition, we will advise you of this fact and return to you all proprietary information
furnished to us without keeping copies of it, if Seller makes such request.

4. Buyer further acknowledges that all information and materials on the business have been furnished by the Seller. The seller believes the
information to be true and accurate. While statements may be presented concerning a matter of opinion, whether or not so identified, these are only
statements of opinion. All information provided to the Buyer is for confidential use and is to be used solely for the purpose of evaluating a business
opportunity as a potential buyer.

5. The Buyer and Seller acknowledges that there is not any broker agreement or broker fees involved with this transaction.

6. We also acknowledge that if we violate this confidentiality agreement, we may be sued for damages in a court of law for breach of this agreement.
The performance and construction of this agreement are governed under the laws of the Commonwealth of Virginia.

Print Buyer's Name(s) ;___________________________________________________________________________ Title________________

Signature: __________________________________________________________________________                    Date: _______________

Company Name: __________________________________________________________________________________________________

Address: _________________________________________________________________________________________________

City / State / Zip: ___________________________________________________________________________________________

Phone: Home:_______________________________ Work:_______________________________Fax:______________________________

                                           PERSONAL FINANCIAL INFORMATION - STRICTLY CONFIDENTIAL

Street Address_____________________________________________                City ___________________________ State ____ Zip ___________

Assets                                                                   Liabilities and Net Worth

Cash on Hand and in Banks                       $                        Notes Payable                        $

U.S. Government Securities                                               Liens on Real Estate

Account, Loans and Notes Receivable                                      Term Loans

Cash surrender Value of Life Insurance                                   Credit Cards

Value of Businesses owned

Other Stocks and Bonds

Real Estate

Automobile - Number (  )                                                 Automobile Loans Payable
____________________________________            ________________         ________________________________     _________________
____________________________________            ________________         ________________________________     _________________
____________________________________            ________________         ________________________________     _________________

Household Furnishings and Personal Effects

Other Assets (Itemize)                                                   Other Liabilities (Itemize)
____________________________________            ________________         ________________________________     _________________
____________________________________            ________________         ________________________________     _________________
____________________________________            ________________         ________________________________     _________________
____________________________________            ________________         ________________________________     _________________
____________________________________            ________________         ________________________________     _________________

Total Assets                                    $                        Total Liabilities                    $

                                                                         Net Worth                            $

Source of Income

Salary (You)                                    $                        Salary (Spouse)                      $

Dividends and Interest                                                   Dividends and Interest

Bonus and Commissions                                                    Bonus and Commissions

Real Estate Income                                                       Real Estate Income

Other Income                                                             Other Income

Your Total Income                               $                        Spouse Total Income                  $

                                                                         Total Household Income               $

The undersigned certifies that this information was provided by him/her and is true and correct

Signature(s)______________________________________________________ ____________________________________________________

Inspecting an Existing Coin-Op
Now that you have one or more laundries that appear to be solid leads, you should plan to make an onsite
visit. Visiting the store in person is the only way to get a clear picture of the quality of the business. In this
chapter, we will discuss how to arrange for the visits, and provide a checklist of items to inspect during your

It is always advisable to make an appointment with the store owner or business broker involved. Be aware
that owners and sellers are very sensitive about strangers snooping around their stores – they don't know if
you are a new competitor, or they may not want their employees to know that the business is for sale.
Throughout this process, stay on the seller's good side!

It's recommended to visit the store during one of the busier days of the week (Friday, Saturday, or Sunday),
in order to get a feel for how the business operates during a high volume period.

Prepare for your visit by making a list of questions you intend to ask the seller. Bring paper for note taking,
and wear casual clothing because you will be exploring back rooms, basements, bulkheads, and the area
behind the dryers. It's a good idea to pack a small flashlight as well.


The tour is obviously an important step toward learning more about the business, the equipment, customers,
and the seller. Pay attention ... and don't jump to quick conclusions. Here are nine important areas to


1. GENERAL STORE APPEARANCE. Take a good look at the store from the outside. Does this store give the
appearance of being a properly-managed, attractive, safe, and inviting coin laundry store? Are the windows
clear of fog and outdated signage? Is there a permanent outside sign visible from all necessary angles? Is
there sufficient off street parking?

Above all, try to capture the "first impression" of the store. Would you consider doing your laundry there?
Don't be disappointed by a few negative answers to your initial questions ... many of these characteristics
can be improved through remodeling.

2. THE FLOOR. The appearance and condition of the floor is important to examine. Floors are expensive to
replace, but having the right floor has everything to do with a bright appearance and customer safety.
Ceramic tile and terrazzo are durable and require relatively simple maintenance.

Vinyl floors are a good value, but require a little more maintenance. Most store owners will tell you to stay
away from wood or carpeted floors. Make sure the floor is clean and well-maintained.

3. THE WASHERS. Inspect the condition of the washers in the store. Do they look like they've been abused or
neglected? How many have "out of order" signs? - - one or two are acceptable; more than 10% out of
commission indicates either poor management or a number of machines that are beyond repair. Also check
for signs of vandalism, such as "pry" marks on coin vaults of the washers. Check the floor around the washers
for signs of water puddles that may indicate equipment leaks. Water stains could indicate something minor
like a loose hose connection or a major maintenance problem - - investigate further!
4. THE DRYERS. You'll want to inspect the dryers as closely as you did the washing machines. Begin by making
certain that the dryers look reasonably well-maintained from the outside ... do they look run down? Once
you've established the general condition of the machines, take a closer look. Be certain that each of the
dryers is working with an electronic ignition - - outdated standing pilot lights are natural gas guzzlers.

In the course of your inspection, look at the interior dryer drums -- are any turning black as a result of the
galvanized coating wearing off? You should see a dull, silver coating intact. The protective coating prevents
rust, and prevents rust from being deposited on clean clothes.

Next, open the dryer doors; reach toward the upper front of the drum; and push upward with some force. If
there is any "play" or movement, this tells you that the main bearings in the dryer need to be replaced, which
is an expensive job. (Note: this same test should be used to test main bearings in front load washers.)

Check the upper access doors of the dryers and look for marks indicating burns or smoke damage on the
front of the doors. Black smoke marks are symptomatic of insufficient ventilation or clogged exhaust vents.

Ask the owner for access to the rear of the dryers. (Be careful not to stand too close to moving belts, chains,
sprockets, and pulleys.) There should be a protective cover in place, but many owners leave them off to make
repairs more easily. The general area behind the dryer should be clear and free of accumulation of lint and
clutter. Additionally, the duct work should be free of excessive rust,      as well as being free of holes or
discoloration that may indicate fire damage or prolonged exposure to dry cleaning chemicals.

5. WATER HEATING SYSTEM. The coin laundry's water heating system is a vital part of the store's operation.
Hot water heaters come in a variety of types and sizes to meet the store's demand.

They are fueled by natural gas and typically have an exhaust duct leading from the heater to the outside.
Check these ducts for excess rust, holes, or heavy discoloration - - also check the outside of heaters for
discoloration or burn marks indicating clogged heating coils, improper ventilation, or the presence of dry
cleaning chemicals.

Inspect the floor area around the heater for indications of water leaks - - this could indicate a faulty water
coil or jacket which may be expensive to repair. Also check the date of manufacture, if more than 15 years
old; it needs to be replaced.

With a great deal of caution, lightly tap the hot water line leading from the heater to the tank to make sure
the water is hot. If there is a thermometer attached, look for the water to be between 120 and 140 degrees.
The tank itself should also be free of signs indicating a leak. Lastly, see that the tank and main hot water line
are properly insulated to minimize heat loss (which would increase utility costs).

6. RESTROOM FACILITIES. Don't underestimate the importance of a clean, modern-looking restroom. Make
sure that the facilities are adequate and can meet ADA standards for accessibility. Look for areas that may
need improvement or have been damaged by vandalism. A clean restroom is a must!

7. CURRENCY CHANGERS. Every coin laundry should have at least one coin changer in top working condition.
Most changers provide quarters for $1, $5, $10, and $20 bills. The coin changer is the "lifeline" of the store - -
if customers can't get change, they can't wash their clothes. Unless you plan on working in the store yourself
on a full-time basis, it is advisable to have at least two changers, or a dual changer with cross-over capability,
in the store in case one breaks down or runs out of change. You should be the only one with access to your
changers, so it is good to have one or two back-up machines in case of breakdowns. This will also cut down
on your "emergency" visits to the coin laundry.

8. UTILITIES. Not only are utilities another vital "lifeline" of a coin laundry, they're also one of the single
highest expense items in your coin laundry. Start your inspection by locating the gas, electric, and water
meters for the location this information will come in handy later as you work to verify utility usage. Once
you've located the meters, keep your eyes open for any signs that the utility is being used by another
business "after" the meter. For example, if the adjacent restaurant is using water coming from the
laundromat, the water bills will obviously be inflated. In a case like this, a laundromat would show more
income than it is actually generating, based on a water consumption test. It’s a good idea to have an industry
professional help you with a thorough examination of the utility bills before committing to the purchase!

9. OTHER SOURCES OF INCOME. Of course, there are sources of coin laundry income beyond the standard
wash and dry income. Part of your store visit should include an inspection of all of the ancillary vending
equipment. Soda, snack, coffee, soft drink, candy, soap, and laundry bag vending equipment; in addition to
arcade games, may be big income-producers in the coin-op. Some stores may generate as much as 10% or
more of their income from sources outside the basic income from washers and dryers. Take a close look at
the vending machines to see that they are in good working condition.

Today's coin laundries often offer a variety of additional services such as: wash-dry-fold service; dry cleaning;
video rental; post office boxes; tanning beds; food concessions; UPS/FedEx shipping; fax and photocopying;
and many more. No matter what the additional services may be, ask as many questions as necessary to arrive
at a good understanding of how these income sources work and how much they contribute to the total
income of the store.

Now that you've had a chance to see the coin-op with your own eyes, be sure to compile your observations
for future reference. This initial inspection should give you a good idea of the condition of this coin laundry,
and whether or not you want to pursue this store as an investment. With all of your background information
in place, you must begin the process of narrowing your choices and selecting which store you may wish to

To arrange an inspection of your potential business by MAGIX Laundry Systems, including demographic
study and utility analysis, contact Martin Hill at (804) 731-4620.

Manufacturer Recourses
Continental - Girbau             

Dexter Laundry                   

Electrolux Professional          







ADC (American Dryer Corp.)       


NATCO (National Water Heaters)   

American Changers (Bill Changers)

                             BROKER BUYER REGISTRATION FORM


Address ____________________________________________________________________________________________________

Office Phone __________________________Home Phone ____________________________ Cell Phone ______________________


Present Employer _____________________________________________________ Position ________________________________

Address ____________________________________________________________________________________________________

Capital Available To Invest _____________________________________________________________________________________

Bank References _____________________________________________________________________________________________

Cash ________________________________________________ Notes Payable ___________________________________________

CD’s & Treasury Notes _________________________________ Accounts Payable ________________________________________

Receivables __________________________________________ Mortgages ______________________________________________

Marketable Securities __________________________________ Other Loans _____________________________________________

Vehicle Market Value __________________________________

Real Estate Market Value _______________________________ Other Liabilities _________________________________________

Other Assets _________________________________________                                       Total Liabilities $ __________________

Additional Sources Of Capital

Amount $ ___________________________________________ Source _________________________________________________

___________________________________________________ _______________________________________________________

___________________________________________________ ________________________________________________________

Total Assets $ _______________________________________ Net Worth $ _____________________________________________

A NOTE ABOUT CONFIDENTIAL INFORMATION: By signing this form, you acknowledge that information and data about the existing business
may be provided to you, and that some of it may be proprietary, secret, or confidential. You agree to use this information solely for the purpose of
evaluating the business, and deciding what offer, if any, to make. You agree to preserve the confidentiality of all data and information, and to return it
on request, together with any copies, extracts, compilations or summaries which may have been made.

Signature __________________________________________ Date __________________________________________

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