| Line Item | SQ Model (QTE29741) (35 washers confirmed, 4T/day) |
Our EL Model (43 washers updated, 4T/day) |
Difference & Notes |
|---|---|---|---|
| Machine mix | |||
| Washer count | 35 washers (QTE29741, May 7 — confirmed: 6×100lb, 7×60lb, 12×40lb, 10×30lb — no 80lb) | 43 washers (updated May 8 — 135lb Compass Pro removed from quote) | SQ new design has 8 fewer washers than prior quote; EL still leads on count |
| 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 — NWFCU + BFG SBA 504 | — | ~$9,200/mo (10% down = $160K on $1.6M, 2 guarantors) | 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 $160K (SBA 504, 2 guarantors) | SBA 504 requires $138K less equity upfront |
| Item | Owner | Action | Priority |
|---|---|---|---|
| Finalize LLC structure Andy + Enrique as sole owners/guarantors | Andres + Justin Griffin | Confirm Operating Agreement reflects Andres + Enrique as sole members. Non-US partners structured as lenders only. Notify William Wilson (NWFCU) when in place. | Blocker |
| Lease attorney review complete Brenda reviewing; Gerald needs it for SBA package | Andres | Send reviewed lease to Gerald Baroudi (BFG). Pay attorney review fee when estimate arrives. | Blocker |
| Equipment decision: EL or SQ Both quotes updated — decision still pending | All partners | EL: PJ quote 297-5-8-26 ready, Clean Funding with improved terms. SQ: Kevin revised 35-washer design, awaiting machine mix confirmation + LaundroWorks pricing. See /comparison. | This week |
| William Wilson (NWFCU) wwilson@nwfcu.org • 703-709-8900 x4734 | Andres + Enrique | Confirm LLC structure is in place. Gather loan package: financial statements, tax returns, business plan, equipment quotes, lease, GC contract. | This week |
| Gerald Baroudi (BFG / CDC) GBaroudi@businessfinancegroup.org • 410-900-8271 | Andres | Send lease once attorney review complete. Coordinate attorney review fee. BFG handles the SBA 504 second-mortgage (40%) portion. | This week |
| Kevin Wilkerson (H&W / SQ) kevin.wilkerson@hynesandwaller.com • 301-442-0800 | Andres | QTE29741 received May 7 — machine mix confirmed (6×100lb), LaundroWorks included. Request final proforma using B&G $465–540K construction and NWFCU SBA 504 financing for apples-to-apples comparison with EL path. | This week |
| Patrick Jackson (Laundrylux/EL) pjackson@laundrylux.com • 419-966-8544 | Andres | Confirm troughs decision (HighMark troughs included — use them or swap for concrete?). Confirm Clean Funding extra benefit details in writing. Confirm extended warranty executive sign-off is locked. | This week |
| Stephen Buchanan (B&G Construction) stephen@bgconstructionllc.com • 571-781-9221 | Andres | Design phase underway (starts week of May 18). Share LODs, CAD drawings, HVAC reports — already sent May 6. Await engineering drawings and locked price. | In progress |