Last reviewed 2026-09-12 by Jaken Energy editorial desk. Next review scheduled 2027-03-12.
Direct answer
When buying a laundromat, request one to three years of electric and natural gas bills per Coin Laundry Association due diligence guidance. Separate supply from delivery charges, verify meter IDs and rate classes, and compare seasonal usage. Utilities often represent roughly 20–25% of revenue nationally with local variation—normalize expenses before trusting seller pro formas.
Request 12–36 months of itemized electric and gas bills for every account serving the store.
Match bills to physical meters, lease addresses, and any landlord-controlled accounts.
Split supply dollars from delivery dollars before comparing stores or suppliers.
Utilities often run roughly 20–25% of laundromat revenue nationally; local equipment and rates vary.
Collect active supplier contracts, LOAs, and deposit records alongside historical usage.
Flag estimated reads, rate-class changes, and one-time credits that distort trailing averages.
Why utility diligence matters in coin laundry deals
Energy is one of the largest controllable operating costs at a laundromat. Coin Laundry Association materials note utilities often represent roughly 20–25% of revenue nationally, though local rates, equipment mix, and hours drive wide variation. A buyer who accepts seller summaries without underlying bills risks overpaying for inflated earnings or inheriting unfavorable supplier contracts.
Due diligence should treat utilities like payroll or rent: verify documents, reconcile to bank payments, and understand what changes after your name is on the account.
Documents to collect before LOI or early in diligence
Build a utility data room parallel to financial statements.
One to three years of PDF bills for every electric and gas account
Supplier or REP contracts, amendments, and renewal notices
Utility deposit receipts and refund status
Interval or demand detail if the store is on a kW-billed schedule
Lease clauses on utility account control and pass-through billing
Equipment list with fuel type (gas vs electric dryers, water heater type)
How to read findings against the pro forma
Trailing twelve-month utility spend is a starting point, not the forecast. Normalize for weather, partial billing months, and seller behavior such as turning off HVAC between showings. Compare therms and kWh per machine-hour or per revenue dollar only after confirming consistent billing periods.
If retail electric choice applies, note whether the seller's supply rate expires shortly after closing—that is a procurement issue separate from whether the machines are efficient.
Red flags that warrant deeper review
Pause or renegotiate when any of the following appear without explanation.
Seller refuses full bill copies or provides screenshots only
Account name is landlord while P&L shows utility expense
Large gap between cash-paid utilities and billed totals
Recent rate-class change or new demand charges unexplained in narrative
Active early-termination liability on a gas or electric contract
Q & A
FAQ
How many years of utility bills should a laundromat buyer request?
Coin Laundry Association due diligence guidance recommends one to three years of utility bills. That window captures seasonal HVAC and water-temperature swings, rate changes, and whether recent increases trace to usage, tariffs, or billing errors rather than a single abnormal month.
Should I separate supply and delivery during laundromat utility diligence?
Yes. In many U.S. markets supply (generation or commodity) and delivery (wires, pipes, and local infrastructure) appear as separate line items. Comparing total dollars without that split can hide an expiring supplier contract or a delivery-only rate increase that will persist regardless of who supplies energy.
What share of revenue do utilities typically represent at a laundromat?
CLA materials cite utilities as often roughly 20–25% of revenue nationally, with significant local variation based on rate territory, gas versus electric drying, water heating type, and operating hours. Use that range as a sanity check—not a substitute for store-specific bills.
Share your utility territory and contract timing. We provide independent supply-side guidance where your market allows—not utility sales or guaranteed savings claims.
