Tumble Fresh Coin Laundry
Initial Investment Range
$1,010,000 to $2,535,500
Franchise Fee
$39,500 to $135,000
Tumble Fresh Franchising, LLC is offering franchises for the operation under the Tumble Fresh Coin Laundry name and logo of a self-service laundromat that provides quality, convenient and efficient washers and dryers in an inviting, vibrant laundry space.
Enjoy our complimentary free risk analysis below
Unlock the full risk analysis to access 9 more categories covering 100+ risks.
Tumble Fresh Coin Laundry April 16, 2025 FDD Risk Analysis
Free FDD Library AI Analysis Date: July 16, 2025
DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.
Franchisor Stability Risks
Start HereDisclosure of Franchisor's Financial Instability
High Risk
Explanation
The franchisor explicitly warns that its financial condition “calls into question the franchisor's financial ability to provide services and support.” Audited financials in Exhibit F show a history of operating losses, minimal net income in 2024 driven by non-royalty income, and renewed losses in early 2025. This thin capitalization of Tumble Fresh Franchising, LLC (Tumble Fresh) may impact its ability to support you, especially as the system grows, and represents a significant investment risk.
Potential Mitigations
- A franchise accountant must thoroughly analyze Tumble Fresh's financial statements, including footnotes and cash flow, to assess its long-term viability.
- Discuss the franchisor's capitalization and plans for funding its support obligations with your financial advisor.
- Your attorney should review any state-mandated financial assurances, like bonds or fee deferrals, that may be required due to this financial weakness.
High Franchisee Turnover
Low Risk
Explanation
The franchise system is very new, with only two franchised outlets operational at the end of 2024. The data in Item 20 does not indicate a high franchisee turnover rate at this time, as there have been no terminations, non-renewals, or cessations of operation. However, the system's youth means there is not enough historical data to meaningfully assess long-term franchisee success or satisfaction. High turnover can be a major red flag in established systems.
Potential Mitigations
- It is crucial to speak with the few existing franchisees listed in Exhibit H to understand their experiences and satisfaction levels.
- Your business advisor can help you monitor future FDDs for any developing trends in franchisee turnover as the system matures.
- An attorney can help you formulate key questions for the franchisor about their franchisee support and retention strategies.
Rapid System Growth
Medium Risk
Explanation
Item 20 shows the system is very small and has only recently begun franchising, with most locations being affiliate-owned. While not growing at an explosive rate yet, the franchisor's limited financial resources, as seen in Item 21, could present a risk if growth accelerates. The franchisor's capacity to scale its support infrastructure to match even moderate growth may be challenged, potentially affecting the quality of assistance you receive.
Potential Mitigations
- In discussions with the franchisor, inquire about their specific plans and budget for scaling support staff and resources as more units are sold.
- Your business advisor can help assess the operational capacity of the current management team to handle system growth.
- Contacting the existing franchisees listed in Exhibit H will provide insight into the current quality and responsiveness of franchisor support.
New/Unproven Franchise System
High Risk
Explanation
Tumble Fresh is an emerging franchisor, having started offering franchises in June 2022 with only two operating as of year-end 2024. The FDD explicitly highlights this “Short Operating History” as a special risk, noting it is likely a riskier investment. While an affiliate has operated locations since 2011, Tumble Fresh itself has never operated a Tumble Fresh Coin Laundry location. This lack of direct operational and franchising experience increases your risk.
Potential Mitigations
- A thorough review of the business experience of the management team in Item 2 with your business advisor is critical.
- Engaging an experienced franchise attorney to negotiate more franchisee-favorable terms may be warranted to offset the higher risk.
- You should conduct extensive due diligence by speaking with the affiliate operator and the few existing franchisees about the system's viability.
Possible Fad Business
Low Risk
Explanation
The Tumble Fresh concept of an upgraded, modern laundromat appears to be a response to a stable, long-standing consumer need rather than a fleeting trend. While the business model incorporates modern technology and amenities, the core service of self-service laundry is well-established. Therefore, the risk of this being a short-lived fad business appears to be low, as the underlying demand for laundry services is persistent and not tied to temporary trends.
Potential Mitigations
- It is still wise to conduct your own local market research with a business advisor to confirm sustained demand for this type of service in your area.
- Discuss the franchisor's long-term vision and plans for innovation with them to gauge their strategy for staying competitive.
- Your accountant can help you model the financial performance based on the established nature of the laundry industry, rather than speculative trends.
Inexperienced Management
High Risk
Explanation
Tumble Fresh has a very limited history as a franchisor, starting in 2022. Item 1 states that Tumble Fresh itself has never operated a Tumble Fresh Coin Laundry location. While the management team has extensive experience operating similar affiliate-owned stores through Linn Retail Centers, Inc., this is distinct from experience in managing a franchise system and supporting independent owners. This lack of specific franchising experience is a key risk factor for you as a franchisee.
Potential Mitigations
- It is vital to ask the management team about any franchise-specific training or consultants they have engaged to support their new role as a franchisor.
- Speaking with the two existing franchisees is critical to gauge the quality of the franchise support systems they have actually experienced.
- Your attorney should be aware of this inexperience when reviewing the franchise agreement for potential areas of risk or negotiation.
Private Equity Ownership
Low Risk
Explanation
This risk was not identified in the FDD package. Item 1 does not indicate that Tumble Fresh or its parent/affiliate is owned by a private equity firm. This type of ownership can be a concern because PE firms often have short-term investment horizons that may prioritize investor returns over the long-term health of the franchise system. Decisions could focus on cost-cutting or rapid expansion, potentially to the detriment of franchisee support and profitability.
Potential Mitigations
- Your attorney can help you investigate the franchisor's ownership structure to confirm the absence of private equity involvement.
- It is good practice to ask the franchisor about their long-term goals for the company and any potential plans for a future sale.
- A business advisor can help research the background of the principal owners identified in Item 2.
Non-Disclosure of Parent Company
Medium Risk
Explanation
Item 1 discloses that the franchisor, Tumble Fresh, is affiliated with Linn Retail Centers, Inc., which owns the trademarks and operates numerous locations. The franchisor itself is a newly formed, thinly capitalized entity. The FDD includes audited financials for Tumble Fresh but not for its more established and financially significant affiliate, Linn Retail Centers. The stability of the system appears to depend heavily on this affiliate, whose full financial picture is not presented.
Potential Mitigations
- Your accountant should carefully analyze the disclosed financials and the nature of the inter-company relationship.
- It is important to ask the franchisor for financial statements of the affiliate, Linn Retail Centers, Inc., given its critical role.
- Your attorney should examine the licensing agreements between the entities to understand the stability of your rights.
Predecessor History Issues
Medium Risk
Explanation
The FDD in Item 1 identifies Linn Retail Centers, Inc. as a predecessor because it licensed the trademarks to the franchisor. Linn has operated Tumble Fresh locations since 2011. While this history is disclosed, the separation of the experienced operator (Linn) from the new, inexperienced franchisor (Tumble Fresh) is a crucial detail. You are contracting with the new entity, not the one with the long operating history, which is a significant risk.
Potential Mitigations
- Your attorney should help you understand the legal separation between Tumble Fresh and its predecessor, Linn Retail Centers, Inc.
- In your due diligence, focus on the contractual obligations of Tumble Fresh, as Linn's history is not a guarantee of future support.
- A business advisor can help you question the franchisor on how Linn's experience is being transferred to the new franchising entity.
Pattern of Litigation
Low Risk
Explanation
This risk was not identified in the FDD package, as Item 3 states, “No litigation is required to be disclosed in this Item.” This is a positive indicator, suggesting the franchisor is not currently involved in significant disputes with franchisees, suppliers, or regulators. However, given the system's youth, the absence of litigation is expected. A pattern of litigation in an established system can be a serious red flag about the franchisor's practices.
Potential Mitigations
- Although no litigation is disclosed, your attorney can perform a public records search to verify this information.
- It is still crucial to interview current and former franchisees about their experiences and any disputes they may have had.
- Your business advisor can help you assess the franchisor's dispute resolution philosophy during discussions.
Disclosure & Representation Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Financial & Fee Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Legal & Contract Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Territory & Competition Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Regulatory & Compliance Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Franchisor Support Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Operational Control Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Term & Exit Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Miscellaneous Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Related Retail Franchises
7-Eleven
$142,150 to $1,627,710
American Shaman
$88,100 to $184,400
Culligan International Company
$130,000 to $813,515.37
European Wax Center
$327,600.00 to $836,950.00
Footprints Floors
$79,955 to $261,480
Mobility City
$255,350 to $653,800
Plato's Closet
$327,200 to $449,000
Power Wash Store
$150,000 to $250,000
Screenmobile
$51,250 to $206,092
Skin Experts By Brentwood Spa
$375,100 to $865,100
Superior Fence & Rail
$133,500 to $275,300
The Coven
$213,400 to $465,200