| Line Item | Kevin's SQ Proforma (41 washers, 4T/day) |
Our EL Model (44 washers, 4T/day) |
Difference & Notes |
|---|---|---|---|
| Machine mix | |||
| Washer count | 41 (4×100lb, 4×80lb, 6×60lb, 13×40lb, 14×30lb) | 44 (10×85lb, 10×65lb, 15×45lb, 9×30lb) | SQ has 3 fewer washers but bigger top-end (100lb) |
| Avg vend price | $3.50–$18.50 (Kevin's market assumption) | $7.82 (confirmed current Bubbles prices) | Our prices are CONFIRMED. Kevin's are estimates. |
| Income (monthly, 4 turns/day) | |||
| Washer income | $38,122 | $41,853 | EL earns $3,731/mo more from washers |
| Dryer income | $17,155 (45% ratio) | $16,741 (40% ratio) | Kevin uses 45% vs our 40%. Ask Kevin which is accurate for gas dryers. |
| TOUCH Cycle Modifier | $6,633 (+12% add-on revenue) | $0 (not in our model) | What is this? Is it a Speed Queen-specific upsell feature? |
| WDF income | $5,400 (150 lbs/day @ $1.50) | $0 (excluded — conservative) | Our model intentionally excludes WDF as conservative baseline. Add $75.6K/yr if WDF launches Day 1. |
| TOTAL INCOME | $67,309/mo | $58,595/mo | Gap: $8,714/mo — almost entirely explained by TOUCH modifier + WDF + 5% dryer ratio |
| Expenses (monthly, 4 turns/day) | |||
| Utilities | $15,477 (25% of W+D) | $5,850 (confirmed actual bills) | Kevin's formula overestimates by $9,627/mo. Gas dryers are cheap to run. Use actual Kevin Cheung bills. |
| Rent + CAM | $19,970 | $19,970 | Same ✓ |
| Labor / Cleaning | $7,000 (formula assumption) | $13,800 ($12K + 15% payroll tax) | Kevin's $7K is likely too low for a full-service attended store in NoVA. Our $13.8K may be high. Reality probably $9–11K. Clarify staffing plan. |
| Insurance | $1,346 (2% of gross) | $1,000 | Similar |
| Advertising | $673 (1% of gross) | $500 | Similar |
| Card processing | $0 (not in Kevin's model) | $1,465 (2.5% of gross) | Kevin omits card fees. Add this regardless of equipment. |
| TOTAL EXPENSES | $46,477/mo | $46,917/mo | Similar totals — but very different assumptions inside |
| Cash flow & debt service | |||
| CF before debt (4T) | $20,832/mo | $11,678/mo | Gap driven almost entirely by TOUCH modifier ($6.6K), WDF ($5.4K), and utility assumption |
| Debt service — Kevin's model | $12,867/mo (6.5%, 9yr, 30% down = $450K) | — | 30% down requires $450K equity ($112K/partner). Very different from SBA 504. |
| Debt service — Newtek SBA 504 | — | $8,041/mo (10% down = $312K, 25yr amort) | SBA 504 cuts monthly payment by $4,826 vs Kevin's financing |
| Debt service — EL Clean Funding | — | ~$11,915/mo (after 9mo deferral, equipment only) | |
| NET INCOME (4T/day) | $7,965/mo ($95K/yr) | $3,637/mo ($43.6K/yr) — SBA 504 –$237/mo if EL Clean Funding | Under SBA 504, EL is positive. Under Kevin's financing, EL barely breaks even. Financing is the dominant variable. |
| Return on equity (4T) | 21% on $450K | 14% on $312K (SBA 504) | SBA 504 requires $138K less equity upfront |
| Contact | Who calls | Ask / Action | Priority |
|---|---|---|---|
| GC Selected (Terry or B&G) Decision from Sunday meeting | Andres | If B&G: sign design contract, confirm retainer amount, request Manassas site visit. If Terry: confirm November availability, get A&E referral, confirm materials included. | Day 1 |
| GC Not Selected Courtesy decline | Andres | "We've selected a GC. We'll keep your contact on file." Short, professional. | Day 1 |
| Patrick Jackson (Laundrylux/EL) pjackson@laundrylux.com • 419-966-8544 | Andres | 1. Request quote extension to May 30. 2. Water heater pricing for EL setup. 3. Ozone system pricing. 4. Written Clean Funding term sheet. 5. VA tax exemption process. | Morning |
| Kevin Wilkerson (H&W/SQ) kevin.wilkerson@hynesandwaller.com • 301-442-0800 | Andres | 1. Long-row layout quote. 2. TOUCH Cycle Modifier explanation. 3. Proforma redo at 10% down (SBA 504 compatible). 4. Chemical dispensing system update. 5. ProOzone install cost. | Morning |
| John Georges (Newtek SBA 504) jgeorges@newtekone.com • 516-254-7568 | Andres + Enrique | Confirm all 4 guarantors added to portal. Clarify G4-visa impact on SBA 504 eligibility for Ricardo & Diana. What's the next required document? | This week |
| Jessica Sena (Regency) jessicasena@regencycenters.com | Andres via Jake | Return signed credit authorization forms (hard pull — both Andres and Enrique). Confirm formal approval timeline. | Day 1 |
| Jake Levin (KLNB) jlevin@klnb.com • 202-909-6102 | Andres | Check status of Regency formal approval. Ask about Suite 6 access for contractors who haven't visited yet. Ask about lease attorney recommendation (Brenda Henson). | This week |
| NWFCU Business@nwfcu.org • 703-709-8900 x4600 | Enrique | Follow up on SBA department callback (reached out April 21). What loan products are available for veteran-owned laundromat acquisitions? | This week |
| Justin Griffin (attorney) Justin.Griffin@vasmallbusinesslaw.com • 804-505-0089 | Andres | Confirm VA tax exemption certificate process for equipment purchase. Ask about G4-visa passive investor impact on SBA guarantee structure. | This week |