Why expiration matters for laundromat margins
Utilities represent roughly 20–25% of laundromat revenue nationally per CLA due diligence guidance—with 53% of owners citing high utility costs in the 2024 survey. Supply contract rollover to default variable pricing changes supply subtotal independently of washer efficiency or dryer gas tuning at 0.36 therm per 30-pound load.
Expiration is a procurement event, not an automatic bill reduction event.
| Days before end | Action |
|---|---|
| 120 | Pull 12 months bills; compute supply effective rates |
| 90 | Confirm choice eligibility and ESID/account IDs |
| 60 | Request quotes; compare contract definitions |
| 45 | Issue notice if staying, switching, or renegotiating per terms |
| 30 | Verify enrollment confirmation from new or renewed supplier |
| 0 | Contract end date—watch for proration on first bill |
| +30 | Audit first full bill supply rate vs agreement |
Auto-renewal and evergreen clauses
Many commercial contracts roll month-to-month or into index pricing if notice is missed. Evergreen clauses extend term until cancelled—read both expiration date and renewal language.
Fixed-to-variable rollover exposes long-hour stores—CLA mean 16.6 daily—to index volatility on full kWh base including water heating share per DOE.
Renew versus switch versus extend
Renew with incumbent if new fixed or index terms beat your computed supply $/kWh benchmark and pass-through list is acceptable. Switch REP or marketer if eligibility allows—Texas TDU areas per PUC, Michigan cap slot, not typical Virginia small load—and alternative contract definitions improve on supply metrics you track.
Extend may mean short bridge contract to avoid unfavorable default rollover while equipment projects finish—document why bridge length matches project timeline.
- Compare supply-only effective rate, not blended bill, for procurement decision.
- Check early termination fee on old contract if switching early.
- Align new start date with meter read to reduce proration confusion.
- Update autopay and portal logins when billing entity changes.
Multi-store and sale scenarios
Owners with two stores—34% of CLA members—or five or more must track independent expiration dates per ESID. Buyers in due diligence requesting one to three years of bills will see supply rate jumps tied to expiration if seller missed notice.
Assign contract PDFs to each legal entity matching utility account name to avoid notice sent from wrong signer.
What continues through expiration
TDU delivery including demand kW on 15-minute Oncor-style or 30-minute Pepco-style intervals continues. Taxes and riders update on regulatory schedules. Consumption profile persists unless you change operations—procurement renewal alone does not cut therms or kWh.
EIA confirms utility delivery persists through supplier changes in choice states.
