Introducing the Coin Laundry Business Put the powerful Electrolux brand to work for you!

Laundrylux

“Laundrylux gave me a blueprint to success. Laundrylux financing and marketing support helped me through the entire process – and customers immediately recognize and trust the Electrolux brand. There is no comparison. What I appreciated the most, is that this was a complete process, as compared to other brands that simply wanted to sell me equipment.” - Jack Lanning, In & Out Laundromat, Lowell, MA

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Why a laundromat? Long-term stability, higher traffic and repeat visitors are just the beginning. The laundry business is stable and has been steadily growing for nearly 70 years. Owners of coin laundries range from white-collar professionals seeking an additional revenue stream to dedicated operators with multiple stores across a region. Many successful coin laundries average a ROI of 20-35%, making it an attractive investment for a variety of entrepreneurs.

A Proven Business Model – and No Franchise Fees With an Electrolux Laundry Center, there are no franchise fees and the failure rate and start-up costs are much lower than with most franchise investments and other small business ventures. It’s a proven business model with positive upside. The laundry business is far more recession-proof than virtually any other business — today’s uncertain and challenging economy has tested and proven this fact. In good times and bad, people must clean their clothing and other household items. During periods of recession, when home ownership decreases, the market expands as more people are unable to afford to repair, replace or purchase in-home washers and dryers, or as they move into apartment and rental housing with inadequate or nonexistent laundry facilities. Established in 1955, Laundrylux has helped thousands of entrepreneurs open successful vended laundries across North America. We provide our customers with world-renowned laundry equipment under the Electrolux brand, as well as financing solutions and marketing support. Our expert distributor network manages the entire process including construction, supply and installation of the equipment, financing, and more.

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100

FastTrack Program

80

(percent) 60

Go from concept to completion in 90 days. Do you own a building or shopping center? Accelerate your income with FastTrack, the exclusive Electrolux Laundry Center launch program only from Laundrylux. By combining our expertise in the laundry industry with our local distributor partners, Laundrylux is able to fill your vacancy faster than any of our competitors.

Survival rates of new laundromats vs. average new business start-ups

40

20

0

Laundromat (after 5 yrs)

Average new business start-up

Average new business start-up

(after 4 yrs)

(after 2 yrs)

U.S. Small Business Administration

The FasTrack Program offers: 35

• Immediate increase in pedestrian foot traffic and new revenue potential to all other businesses in your plaza.

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• Financing package through Laundrylux Funding Services (LFS), a leader in the industry. • Equipment mix recommendations, including washers and dryers, as well as other necessary equipment such as payment systems, changers, soap venders, snack/ soda vending machines, and more.

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• Flexible design guidelines for the look and feel of the store, detailed floor plan, recommendations for wall colors, flooring material options, folding tables, seating units and bulkheads. Laundrylux has thoughtfully pre-selected complementary design elements to create a modern, clean and comfortable branded environment for today’s time-starved consumers.

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• Close coordination by your Electrolux Professional Distributor with local construction trades during the build-out phase. • Custom design of Electrolux exterior signs for maximum impact (within local ordinances), including coordination with local sign company for installation. • A comprehensive kit of interior instructional signs, decals, and point-of-purchase materials. • Professional marketing support for pre-opening and grand opening activities by Laundrylux Creative Services (LCS), including direct mail postcards, flyers, posters, banners, public relations and more. • Ongoing support from Laundrylux and your local Electrolux Professional Distributor.

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25

Average rates of return on investment for 1 year (percent)

15

5 0

Laundromat Mutual Fund

Money Mkt

Savings Acct

Sources: CLA.org, Wall Street, Journal, Baird Capital Mgmt.

Electrolux laundry centers deliver an exceptional branded value • • • • • • • • •

Great investment with an average ROI between 20-35% High weekly repeat business Profitable in all economic cycles Cash business with no inventory or receivables No franchise fees Expert marketing assistance to help build your business Electrolux world-class products and reputation for quality Electrolux technology saves you time and money Exceptional local distributor support

Site Criteria: Premises Size: 1,500-6,000 sf Parking: 3-5 dedicated spaces

Laundrylux Creative Services We provide marketing expertise and support to help make your laundry a success. This service is unique in the industry and available only to Electrolux store owners.

Population: 12,000+ per sq mile, mixed ethnicity Average Household Income: $50,000 or below; $75,000 or below in major metro areas Site Qualities: • Freestanding, endcap, or inline • Maximum glass exposure • Highly visible to the street • Easy ingress/egress

Turn-Key Store Design

Strip centers anchored by a supermarket, drug store, convenience store, or family discount store. Other desirable tenants are checkcashing, dollar stores, drycleaners, auto parts, and similar businesses. Weekly destination shopping nearby is desirable. Terms & Options: 10-Year Primary Term with 3, 5-Year Options

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Join the world of successful Electrolux Professional laundry owners Electrolux Laundry Centers create customers for life by providing a unique experience with high tech features and best wash results. An Electrolux Laundry Center is a complete turn-key package. It includes store layout, professional signage, expert marketing support, and superior equipment; ideal for attracting repeat visitors. Designed for today’s hyper-busy lifestyles, Electrolux Laundry Centers draw from a broad spectrum of consumers. And laundromats are a great addition to strip centers. Laundry Laundrylux Funding Services (LFS) has users become captive spenders for other in aonstrip center been financing cointenants laundry and because they have “downtime” for premises while laundrywaiting operations fortheir more wash than and dry cycles to complete.50 years. Our laundry finance programs provide

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Frequently Asked Questions Q. Is a laundromat a good tenant? A. Absolutely! A well-designed and professionally managed coin laundry delivers a steady flow of customers and activity to a shopping plaza daily. Laundry users become captive spenders for tenants in the center because they have “downtime” while waiting for their wash and dry cycles to complete. A majority of Electrolux Laundry Centers are fully attended with professional employees to assist customers and process drop-off laundry orders.

Q. I thought laundries only attracted lower income customers? A. Today’s coin laundries serve customers from all economic backgrounds. Many people find it easier and faster to use their local laundromat because the machines provide larger capacity – they can get the entire week’s laundry done in one hour. Customer also appreciate the higher quality wash results than found in the home or in multi-family building laundry rooms. Higher income consumers often visit laundries to wash and dry large items such as bedspreads, comforters and other bulky household items.

Q. What kind of foot traffic does a laundry bring to a shopping plaza? A. Electrolux laundromats make great tenants! They bring in a consistent flow of pedestrian traffic who are “captive spenders.” For the 60 minutes it takes for customers to wash and dry their laundry, they tend to look for activities within the shopping center to spend their time and money. Other co-tenants such as grocery stores, restaurants, and other retail stores see as much as a 30% or more increase in revenues as a result of having a laundry as a co-tenant.

Q. Are laundries a stable business? A. The survival rate of coin laundries is higher than 95% after opening. It’s a proven business model and is far more recession-proof than virtually any other business. When an Electrolux Laundry Center is located in a high-traffic area and contains the right equipment mix, it will flourish year after year.

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Electrolux Professional Laundry Solutions throughout North America.

Laundrylux

800.381.7222 • laundrylux.com Laundrylux • 461 Doughty Blvd., Inwood, NY 11096-0338 516-371-4400 • F 516-371-4204 • [email protected] Parts: 516-371-2000 • F 516-371-4029 • [email protected] Tech Support: 516-371-0700 • F 516-371-4029 • [email protected]

You should conduct your own independent research and consult with your own professional advisors before making a decision about starting an Electrolux vended laundry operation. In making such a decision, you must rely on your own independent examination of the business opportunity, including the risks involved.