Speed Queen® Vended LaundryOpportunity Guide

There’s no business like the vended laundry business.

UNCOMMON FLEXIBILITY WITH HIGH RETURN ON INVESTMENT POTENTIAL.

BDS Laundry Systems and Speed Queen are the perfect partners for profitability.

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Compared to most traditional investments like stocks, bonds and real estate, a laundry business offers many

unique benefits and the potential for high ROI.

A solid investment for the futureWhen researching a small business investment opportunity, the first question you want to ask is: “Is it profitable?” When it comes to the vended laundry business, the answer to that question is a resounding “yes.” In fact, according to the national Coin Laundry Association, vended laundries see an average return on investment of 20-35%* — much higher than most alternative investment opportunities. Add additional benefits such as no franchise fees, independence, flexibility, modest start-up costs and recession resistance, and you’ll soon see that there is no business like the vended laundry business.

Achieve your dreamsEvery business opportunity presents both advantages and disadvantages depending on your own personal goals. The vended laundry business is no different. But with a unique combination of stability, flexibility and profit potential, vended laundry business investments are in a class all by themselves.

A stable foundation for successCurrently there are around 29,500 vended laundries in the United States, and they generate approximately $5 billion in gross revenue annually*. Clean clothes, like food and shelter, are considered a necessity of life and vended laundries provide a basic health service for millions of Americans. Laundries thrive in periods of both growth and recession. During recessions, when home ownership decreases, the laundry market expands as more people are unable to afford to repair, replace or purchase new washers and dryers, or as they move to apartment housing with inadequate or nonexistent laundry facilities. The market size grows proportionately to the increase in population. Laundering large items for personal and business use creates a need for a vended laundry for virtually everyone. The public will always need this basic health service — people always need to wash clothes!

*Industry figures courtesy of the Coin Laundry Association, www.coinlaundry.org

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WHY INVEST INA SPEED QUEEN VENDED LAUNDRY?

There are loads of reasons — and profitability is at the top of the list.

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The flexibility enjoyed by laundry owners allows them to customize their business around

their personal and professional lives.

A business unlike any otherWhen it comes to both a financial and time commitment, a vended laundry has many advantages over most other types of businesses. The flexibility enjoyed by vended laundry investors allows them to customize their business around their personal lives. In fact, a recent survey reveals that one-third of current laundry owners run their stores on a part-time basis while maintaining a full-time career.

Explore the advantages• No franchise fees

• Potential for a comparatively high rate of return on investment

• Can be a part-time addition to your existing career

• Labor costs are minimal because customers do most of the work

• Relatively easy to run compared to other service businesses

• No special technical skills are needed

• Minimal accounts receivable — most of the revenue generated each day can be collected the same day

• Fixed costs are minimal

• Virtually no inventory costs

• No inventory spoilage factors

• More resistant to recession and economic downturns

• No complicated bookkeeping or accounting systems

• Minimal employee concerns

• Potential tax advantages due to fast depreciation for business owners

• A business that is likely to appreciate in value over time

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SPEED QUEEN DELIVERS SUPERB OWNER BENEFITS.

Your choice of equipment brand can increase the likelihood of success.

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For more than a century, Speed Queen has built a legacy by manufacturing equipment that withstands the daily challenges of the commercial environment.

Worldwide leader in commercial laundryEvery day, every cycle, Speed Queen equipment performs. Without a focus on quality, Speed Queen would never have become the largest commercial laundry brand in the world. Investing in Speed Queen products means you’ll get premium performance and reliability that is second to none. Speed Queen washers and dryers are constructed to last longer in commercial environments, and they’re tested to ensure rugged durability and long-term dependability. Speed Queen washers and dryers are proudly made in Ripon, Wisconsin.

Revolutionary technologySpeed Queen’s revolutionary Quantum® system gives owners complete control over their laundry business. Featuring networked, customizable options — including the ability to manage many aspects remotely — Speed Queen Quantum®

equipment delivers powerful benefits to make life easier and more productive.

Built to a higher standardSpeed Queen products are a different class of laundry. No other commercial laundry manufacturer demands more from their machines than Speed Queen’s parent company, Alliance Laundry Systems. Every product must meet their rigorous 5-stage product development process before production ever starts.

Some competing brands may believe that a residential washer wrapped in a rugged exterior passes for commercial grade. But many of these “home appliance style” machines won’t stand the test of time. That’s why every Speed Queen machine is designed, tested and built to withstand the rigors of commercial use. Simply put, Speed Queen equipment will last longer and need fewer repairs compared to other competing brands.

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A SPEED QUEEN VENDED LAUNDRY OFFERS TOTAL FLEXIBILITY.

Speed Queen’s full-line of washers and dryers provides opportunity in every market.

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Whether you’re opening a new laundry or upgrading an existing location, Speed Queen and BDS Laundry Systems have the equipment and expertise you need for success.

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Quality products made for today’s consumersThe type and size of Speed Queen equipped vended laundry an investor should build varies from market to market — and even from neighborhood to neighborhood. Speed Queen’s full-line of top-load washers, front-load washers and tumble dryers allow store designs that match the needs of the surrounding community. Whether your market is located in a rural area, suburb or a large metropolitan city, you can trust Speed Queen to deliver a total store package designed for profits. BDS Laundry Systems, the authorized Speed Queen distributor serving the region, can help you design a vended laundry store that fits just right. Speed Queen products are built in the company’s own Wisconsin factories to ensure the best quality control.

MAJOR FACTORSFOR SUCCESS:LOCATION ANDEXTERIOR SIGNS.

Generate higher traffic with the right location and professional signage.

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Two major factors that influence the long-term success of a vended laundry store are location

and having professional exterior signs.

Location directly impacts successThe real estate adage “location, location, location” applies to the vended laundry industry. A vended laundry business can be well-equipped, well-built and well-managed, but if the location isn’t right, the business may not reach its full income potential. Here are key guidelines to follow when selecting a site:

• Locate near other retail businesses

• Provide adequate parking

• Be aware of your competition

• Know the demographics of the surrounding area (population, owners vs. renters, income level, etc.)

Project a professional imageAttracting a steady stream of customers to your Speed Queen equipped laundry is highly dependent on installing professional signage. It’s important to make certain that exterior signs are as visible as possible — both day and night. After all, exterior signs are proven to be the #1 traffic builder for vended laundry stores. In fact, nearly half of laundry customers surveyed said they found out about the store by seeing the exterior sign, not through traditional advertising or online search.

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WHEREWILL YOURCUSTOMERSCOME FROM?

The vended laundry market is fairly predictable, which makes for a sound investment.

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Vended laundry customers want to experience time savings and convenience in a clean and

safe environment that is close to home.

Laundries serve an expanding marketOne of the most exciting aspects of owning a vended laundry business is the potential market. It consists of many more people than just those who lack access to in-home laundry machines, such as apartment dwellers, home renters, college students and transient workers. In fact, a recent survey of vended laundry customers reveals that just slightly more than 50% fall into that category.

Approximately one-third of today’s vended laundry customers have access to a home laundry facility, yet prefer to use the equipment available at a self-service vended laundry. The reasons include:

• Large-capacity machines make it easy to wash and dry oversized household items such as comforters, bath towels, rugs, sleeping bags and other items

• Ability to do laundry faster because of multiple machines and larger capacity

• Commercial-grade equipment provides better results for heavily soiled loads

• Home laundry appliances are too small to handle bulky items

More potential customers• Business and leisure travelers visiting the area on a short-term basis

• Other businesses that require clean laundry, such as salons, spas, health care facilities and restaurants, but have no on-site laundry equipment

• People whose home laundry equipment is temporarily not in working order

Meeting the demandToday’s vended laundry customers want immediate access to machines in a clean, comfortable and safe environment. It’s important to equip your store with enough washers and dryers to handle peak traffic during evening hours and weekends.

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INVEST IN THE BEST FOR YOUR NEW BUSINESS VENTURE.

Put your trust in the world’s most experienced equipment manufacturer.

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Depend on Speed Queen equipment from BDS Laundry Systems to help you meet your

goals and maximize your return on investment.

Humble beginningsAlliance Laundry Systems, the parent company of Speed Queen brand commercial laundry equipment, traces its roots back more than a century ago. In 1908, Joe Barlow and John Seelig, two industrious hardware store owners in Ripon, Wisconsin, purchased several hand-powered washing machines from a company in Kansas City. After experimenting with the washing machines, the inventors devised a way to increase the machine’s efficiency through high-speed gearing. The partners purchased the manufacturing rights from the company in Kansas City and Barlow & Seelig Manufacturing was born. Barlow & Seelig produced a limited amount of washers sold under the name “White Cloud” until 1928 when the brand became Speed Queen — and a legend was born.

Leading the wayFast forward to today. Alliance Laundry Systems and its regional distributor partners remain dedicated to delivering the best washers and dryers backed by the industry’s finest service and support. Refined for more than a century, Speed Queen’s innovative technology and proven performance deliver the reliable operation you’ve come to expect from the most profitable brand to own in commercial laundry. Speed Queen products are proudly made in the USA. Alliance Laundry Systems is based in Ripon, Wis., and its corporate headquarters campus occupies five buildings on more than 58 acres. Its facilities include two manufacturing plants, an engineering center and test lab, and distribution facilities. The company provides more than 2,700 jobs.

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PROFESSIONALFINANCINGOPTIONS AREAVAILABLE.

Lease and financing terms are flexible to match your needs and business goals.

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Our independent financing specialists can provide a variety of vended laundry

equipment funding options for new investors.

Our independent financing specialists can tailor a plan to meet your needsWhen you invest your hard-earned money into a new business venture, you want to take every step possible to ensure the success of that investment. And nothing increases a vended laundry investment’s chances like the support of our independent financing specialists.

Personalized Relationship ManagementA finance professional will personally manage your account from the beginning to the end of your coin laundry business loan — but it doesn’t stop there. Your contact will continue to tailor specific programs for future financing situations, such as updating your equipment or expanding your portfolio, to ensure ongoing success after your store opens.

Tailored to Your NeedsCommercial laundry financing programs can be specially formatted to put you in the best position for success, such as structuring your front-end payments to coincide with the projected ramp-up of your store. Whether you have one store or seven, there are several options to make sure your financial plan is flexible and supports future growth.

Business BenefitsMany funding packages will provide up to 95% equipment financing for immediate ordering of equipment. With your good credit standing, minimal down payment requirements will help reduce big cash outlays. In addition, equipment financing may offer tax advantages as an operating expense.

FlexibilityBDS Laundry Systems can provide assistance in applying for a Small Business Administration (SBA) loan. Our experts are also seasoned in working with local banks and other lenders to help you secure the financing you need.

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WHAT’S THENEXT STEP?

The experts at BDS Laundry Systems can help you get started in this profitable business.

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Depend on the experienced team at BDS Laundry Systems. We know what it takes to succeed in the vended laundry business.

An experienced partner you can trustAs the authorized Speed Queen distributor serving the region, BDS Laundry Systems has more than 54 years of experience in the commercial laundry industry. Since 1961, BDS has helped entrepreneurs establish more than 852 successful vended laundry stores across the upper Midwest. When you partner with BDS, you will work closely with our business consultants who will guide you through the entire process. Unlike other business opportunities, access to this level of expertise is provided at no additional cost.

Why choose BDS Laundry Systems?EXPERIENCE. On top of the products and services we offer, BDS Laundry Systems brings something far more valuable to the table — experience. Our vended laundry sales consultants are the best in the industry, and they know the laundry business and local markets better than anyone else. It’s experience you can depend on.

FOCUS. Unlike some of our competitors, commercial laundry equipment sales and service is our company’s exclusive focus. That’s how you become an expert — do one thing and do it very well.

FAMILY OWNERSHIP. BDS is a third generation, family owned company. You deal directly with our top management team and you can rely on us for a commitment to your 100% satisfaction.

REPUTATION. BDS Laundry Systems has consistently been honored with numerous sales and service excellence awards from leading manufacturers and industry organizations. These awards are a reflection of the pride we take in our work.

CUSTOMER SERVICE. The experts at BDS are available long after the sale to answer questions and provide ongoing consultation. You’ll enjoy a refreshing commitment to personal service. We are truly dedicated to your long-term success.

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MAKEINFORMEDDECISIONS.

BDS Laundry Systems can assist you in identifying the optimal location for your store.

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Your BDS Laundry Sales Consultant can help you scout potential locations and perform detailed research to

find the ideal location for your new business.

Discover market opportunitiesWhen it comes to success in the vended laundry business, it’s important to work with a distributor that has more than a half century of experience in making certain your store is located in an area where you have the best opportunity to thrive. A detailed demographic study is the place to start. This includes identifying the surrounding population’s ethnic makeup, income levels, rental percentage, household size and median age. All of these factors will influence your store’s revenue potential. It is also important to study traffic patterns, research the availability of utilities, assess store visibility and signage, and ensure there is ample parking available.

BDS Laundry Systems will also provide a competitive analysis for a potential site. This includes identifying area competitors, and assessing their strengths and weaknesses in such areas as equipment mix and condition, amenities offered, pricing and other important factors.

Selecting your location• The site should be near other businesses

• You must have adequate parking facilities available for your customers

• Make certain the site is in a highly visible area

• Locating on a corner where two streets intersect usually makes for an ideal location

• Be aware of the competition in your area

• Conduct a detailed demographic analysis

• Determine the best location(s) for exterior signage and research sign ordinances

• Look into local advertising and promotional opportunities available in the area

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DETERMINEYOUR STORE’SESTIMATEDPROFITPOTENTIAL.

BDS Laundry Systems can provide revenue projections before you ever invest a penny.

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Clean clothes, like food and shelter, are a basic human need. That’s why many consider vended

laundries to be recession resistant.

The bottom line is your profitabilityBased on the results of the demographic and competitive analysis, BDS Laundry Systems will provide a detailed, estimated revenue projection report* calculated uniquely for your location before you make any investment in the business. This report will provide you with a snap-shot of estimated sales, utility costs and overhead. It is important to note that these projections are only estimates, and can vary based on a number of factors.

Maximize your profit potentialYour profitability will be influenced by:

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*Thefiguresthatwillbeprovidedwillbeestimatesonly,andthereisnoassuranceyouwilldoaswell.Youmustaccepttheriskofnotdoingaswell.Thefiguresprovidedarenotarepresentation,warrantyorguarantybyBDSLaundrySystemsthatyouwillbeprofitable.Youmustrelyuponyourownabilityandyourownprofessionaladvisorstoevaluatethesuitabilityofthelocation,costs, and associated risks.

• Exterior signage

• The size of the target market

• Ample parking

• Customer retention rates

• Utility costs and overhead

• Employing friendly laundry attendants

• Store cleanliness and safety

• Hours of operation

• Reliability and performance of the equipment

• Favorable lease terms

• Equipment mix

• Ancillary services

• Strength and changes in competition

• Effective, on-going promotions

• Management ability

THE RIGHT MIXOF EQUIPMENTIS THE RECIPEFOR SUCCESS.

The type, size and amount of equipment you choose can make all the difference.

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The experts at BDS Laundry Systems know which types of equipment will work best for your operation.

Maximize ROI with right mix of equipmentChoosing the proper mix of equipment for your Speed Queen equipped laundry is important. By being in tune with market preferences, you can match the equipment to the particular needs of users. For example, college students typically want smaller, single-load equipment, while families demand a mix of larger, multi-load machines so they can complete the laundry chore quickly and efficiently.

Generally speaking, larger washers are more efficient per pound of laundry washed. Therefore, profit margins are higher on multi-load equipment compared to traditional top-load washers. Areas with large families require having a higher proportion of large washers.

It is also important to have ample dryer capacity. To maximize revenue on busy days, such as weekends, you need to move customers through the store as quickly as possible. With the right combination of single- and multi-load washers, the general rule is there should be one dryer pocket per washer. Carefully selecting the optimal mix of equipment will draw customers to your store, maximize turns per day and minimize utility costs.

Additional equipment needsIn addition to washers and dryers, it is essential that you provide other equipment in your vended laundry store:

• Bill changers

• Credit card acceptance

• Money management system

• Ozone water sanitizing system

• Soap and plastic bag vending machines

• Snack and beverage vending machines

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• Highly efficient water heating systems

• Utility bulkheads for washers

• Folding tables and seating units

• Laundry carts

• Other market-specific equipment

PLAN THESTORE LAYOUTFOR CUSTOMERCONVENIENCE.

The goal is to maximize profit per square footby providing a convenient store layout.

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BDS knows how to maximize your profit potential by designing a laundry with the

proper equipment mix, services and layout.

In-house store layout and design are critical factors in the marketability of a vended laundrySecond only to location, the most important factor contributing to the ultimate success of any vended laundry is the layout and design of the store’s interior. If your store is designed for convenience, it will meet the needs of your customers, and encourage them to come back time after time.

Before breaking ground on new construction, or extensively remodeling an existing building, the experts at BDS Laundry Systems can provide you with a thorough and detailed plan that will make the best and most profitable use of floor space for a particular location.

The store layout plan will include:

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• Equipment mix specifically designed for your demographics

• Mechanical requirements such as adequate water pressure, supply of hot water, venting, the size of gas lines, location of sewer lines and utility planning

• Wide aisles and plenty of windows for ambiance and security reasons

• Smooth workflow for employees, particularly if you offer ancillary services

• Wide doorways to make it easy for customers to enter and exit

• Attractive interior design, including color schemes, flooring options, ceiling fans, television monitors, etc.

• Optimal placement of bill changers and attendant station

• Efficiency and performance enhancements

Example of a 2,000-sq.-ft. store layout

WELL-DESIGNED MECHANICALSPAY BIGDIVIDENDS.

A well-planned and efficient back room will save you money year after year.

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The nuts and bolts of managing utility costs and protecting your investment is where your

real competitive advantage exists.

The right mechanical systems increase energy efficiencyA self-service vended laundry store requires the use of significant amounts of natural resources including water, natural gas and electricity. The experts at BDS Laundry Systems have the real-world experience to design systems that maximize the use of these resources.

HIGHLY-EFFICIENT WATER HEATING SYSTEM. The water heating system in your equipment room may not be the most glamorous part of your operation, but it is the heart of it. BDS will engineer a water heating system specifically for your store to meet your hot water requirements. The right water heating system can provide efficiency levels as high as 99.8% efficient to make your operation more profitable.

DRYER MAKEUP AIR SYSTEM. The experts at BDS Laundry Systems will work with your building contractor to engineer an efficient dryer makeup air system specifically tailored to your location. Properly vented dryers will provide better results for your customers and reduce your operation costs by maximizing efficiency.

MONITORING SYSTEM. It is important to keep an eye on your investment, even when you’re not able to make a store visit. New security and monitoring technology allows you to view video surveillance via the Internet, monitor bill changers and more. You can even remotely lock and unlock doors and control lighting from the comfort of your home or office.

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OFFER EXTRASTO EARN EVENMORE.

Maximize your profits by offering complementary products and services.

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There’s more to today’s vended laundry stores than just washers and dryersLet’s face it. Not many people like doing laundry. That’s why it’s important to make the experience as enjoyable and efficient as possible. Here are several ways other store owners have cashed in on this captive audience.

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• Wash/Dry/Fold service

• Tanning booths

• Car wash

• Pet wash

• Mailbox rentals

• Convenience/grocery store

• Video games

• ATMs

• Kids zone

• Concessions

• Coffee bar

• Fitness center

• Drycleaning

• Internet access

Commercial accountsA significant opportunity exists in serving commercial accounts — such as restaurants, catering services, health clubs, salons, spas, grocery stores, health care facilities and more. Many store owners provide pickup and delivery services for larger commercial accounts.

When designing your Speed Queen equipped vended laundry, consider including amenities

to attract a variety of customers.

COIN OR CARD? LET CUSTOMERS DECIDE AT THE POINT OF PURCHASE.

Give your customers the power to swipe their credit or debit card right at the machine.

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Credit card acceptance allows customers to choose the payment option that best fits their needs.

BDS Laundry Systems offers advanced solutions for total payment flexibilityNearly 75% of U.S. consumers carry at least one credit card in their wallet or purse, and studies show that customers spend more money when using credit cards versus cash. Customers who use credit cards will often seek out businesses that offer card-based payment options. New FasCard technology from Card Concepts Inc. (CCI) allows vended laundry owners to accept credit cards on washers, dryers and other vending equipment, while still offering customers the option to use coins for payment. This revolutionary system uses wireless technology for easy installation and offers powerful web-based management tools to put owners in complete control of their business.

PAYMENT CONVENIENCE

Machines equipped with the FasCard System have the ability to accept major credit cards and “offline” debit cards while still having the ability to accept quarters as usual. Coins or card? Let your customer make the choice!

BIGGER PROFITS

Customers that pay using a credit card will buy more wash cycles, upgrade to higher priced machines and buy more dry time. Customers no longer have to insert quarter after quarter into the coin drops, and you’ll deal with fewer hassles from having to count, roll and transport quarters to the bank.

100% WIRELESS

The FasCard System uses wireless communication for cable-free installation. The system is easy to install and integrates seamlessly with Speed Queen controls.

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READY TO CLEAN UP? CONTACT US TO LEARN MORE.

For the right investor, a vended laundry can produce a steady, predictable income stream.

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Our team of laundry professionals will introduce you to the exciting benefits of owning and operating a

self-serve vended laundry in your local market.

Success is within your reachWhen you’re ready to discuss the advantages of owning and operating a Speed Queen equipped vended laundry, contact us for a no-obligation consultation.

BDS Laundry Systems2430 Enterprise DriveSt. Paul, Minnesota 55120Toll-Free: 800-688-0020bdslaundry.com

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BDS Laundry Systems is the authorized Speed Queen Commercial Laundry Distributor serving the areas highlighted in purple.

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

There is no guaranty of success. Whether your vended laundry operation succeeds will be largely dependent on your ability as a business person. Like any business opportunity, a vended laundry operation is subject to significant risks, including the possible loss of the principal amount invested and additional amounts. Results of vended laundry operations can vary significantly from location to location and from operator to operator.

An investment in a vended laundry is not insured by any federal government agency. The business opportunity discussed in this document is not regulated, and has not been recommended by or registered with any federal or state securities commission or other regulatory authority. No federal or state securities commission or other regulatory authority has confirmed the accuracy or determined the adequacy of the information in this document. BDS Laundry Systems is not a registered or licensed investment advisor or broker/dealer.

NOTHING CONTAINED IN THIS DOCUMENT AND NO STATEMENT MADE BY ANY REPRESENTATIVE OF BDS LAUNDRY SYSTEMS SHALL BE DEEMED TO BE A REPRESENTATION, WARRANTY OR GUARANTY OF ANY KIND, EXPRESSED OR IMPLIED, BY BDS LAUNDRY SYSTEMS. BDS LAUNDRY SYSTEMS EXPRESSLY DISCLAIMS THE MAKING OF, AND YOU ACKNOWLEDGE THAT YOU HAVE NOT RECEIVED, ANY REPRESENTATION, WARRANTY OR GUARANTY, EXPRESSED OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, ANY REPRESENTATION, WARRANTY OR GUARANTY AS TO THE POTENTIAL VOLUME, PROFITS, OR SUCCESS OF THE BUSINESS OPPORTUNITY DISCUSSED IN THIS DOCUMENT.

Copyright © 2015 BDS Laundry Systems. All rights reserved. Speed Queen® and Quantum® are trademarks of Alliance Laundry Systems LLC.