The Real Cost of Starting a Laundry Franchise in India: 2026 Breakdown
For entrepreneurs looking for a franchise business under 25 lakhs, CleanCraft offers a scalable laundry and dry-cleaning franchise model backed by technology, training, and operational support. With its growing network and strong demand for professional laundry services, CleanCraft is emerging as one of the fastest growing franchise opportunities in India.
Clean Craft’s laundry franchise setup costs Approx. ₹25 lakh, including GST on the listed setup components. This covers machinery, initial supplies, the franchise fee and infrastructure for the agreed store area. Transportation, advance rent, security deposit and working capital are additional.
For anyone researching a laundry franchise in India with a ₹20–35 lakh budget, that distinction matters. The cost of preparing a store and the cash needed to open and operate it are different calculations.
This guide breaks down both, using Clean Craft’s supplied 2026 estimates.
What does the Approx. ₹25 lakh setup include?
The itemised setup totals ₹24.78 lakh, rounded to Approx. ₹25 lakh.
| Setup component | Estimated cost before GST | GST at 18% | Estimated cost including GST |
|---|---|---|---|
| Initial supplies and tagging package | ₹2,00,000 | ₹36,000 | ₹2,36,000 |
| Machinery | ₹8,50,000 | ₹1,53,000 | ₹10,03,000 |
| Franchise fee | ₹6,00,000 | ₹1,08,000 | ₹7,08,000 |
| Infrastructure for the agreed area | ₹4,50,000 | ₹81,000 | ₹5,31,000 |
| Total | ₹21,00,000 | ₹3,78,000 | ₹24,78,000 |
These are indicative Clean Craft figures, not an industry-wide price schedule. The table uses the 18% GST treatment supplied by Clean Craft for these components. The final quotation should confirm scope, applicable taxes and site-specific charges.
Infrastructure is estimated for the agreed layout. Increasing the store area can increase the cost.
Machinery: what is included?
The machinery allocation is approximately ₹8.5 lakh before GST and covers:
• A 15 kg LG washer and dryer.
• A 10 kg washer and dryer.
• Two pressing tables.
• One boiler.
• One spotting table.
Before ordering, obtain the equipment schedule showing individual models, quantities, warranties and installation responsibilities. Confirm which services the equipment supports in-store and which, if any, require external processing.
A barrier washer is not required for this Clean Craft setup. Barrier washers serve a different purpose: they separate dirty and clean laundry zones in hygiene-sensitive operations. They should not be added to a retail store’s budget simply because they appear in an industrial laundry equipment list.
Initial supplies: allow for replenishment after launch
The approximately ₹2 lakh initial package includes detergent, packing material and a tag printer.
This is an opening package. Detergent and packaging will need replenishment as orders increase. The tag printer is reusable equipment, even though it sits within this commercial package.
Ask for an itemised opening-stock list so you can distinguish one-time purchases from recurring supplies. The initial stock value alone does not establish how many months it will last; that depends on order volume and consumption.
Franchise fee: what support does it cover?
The franchise fee is ₹6 lakh before GST. Clean Craft states that marketing charges, store setup charges and manpower training are included in this fee. Software is free for the first year.
The separate machinery and infrastructure allocations still apply. “Store setup charges included” should therefore be read alongside the full quotation, rather than interpreted as including every physical setup expense within the franchise fee.
Before signing, confirm the deliverables covered by marketing support, the training scope and the software renewal charge after year one.
Infrastructure: define the work before the work begins
Clean Craft provides the store design, and vendors execute the work against it. The infrastructure estimate is approximately ₹4.5 lakh before GST for the agreed area and scope.
The supplied site requirements are:
| Requirement | Planning specification |
|---|---|
| Store area | 350+ sq. ft. |
| Electrical connection | 10–12 kW |
| Drainage | 4-inch drainage provision |
| Water | Approximately 1,500 litres per day |
These are starting specifications for site assessment. Actual utility consumption depends on workload and operation.
Before committing to a property, obtain a written schedule covering civil interiors, electrical work, plumbing, drainage, ventilation, exhaust ducts and signage. Each item should be marked as included, excluded or subject to a separate quote.
Also establish whether the landlord or franchise owner must arrange any utility upgrades or permissions.
The value of a turnkey proposal is a defined scope and clear responsibility. It does not remove the need to document changes. If the store area expands or additional work is requested, agree on the revised price before execution.
What costs are additional to Approx. ₹25 lakh?
Transportation
Transportation is charged at actuals and depends on location. Obtain the destination-specific estimate before finalising the budget, including clarity on unloading and handling.
Advance rent and security deposit
The supplied planning assumption is one month’s advance rent plus two months’ security deposit.
At an indicative monthly rent of ₹50–75 per sq. ft., a 350 sq. ft. store produces the following calculation:
| Rental requirement | At ₹50 per sq. ft. | At ₹75 per sq. ft. |
|---|---|---|
| Monthly rent | ₹17,500 | ₹26,250 |
| One month's advance rent | ₹17,500 | ₹26,250 |
| Two months' security deposit | ₹35,000 | ₹52,500 |
| Initial rental cash requirement | ₹52,500 | ₹78,750 |
These are illustrations using Clean Craft’s supplied assumptions, not rental quotations for every Indian city. A larger store or different lease terms will change the figures.
Keep the security deposit separate from monthly expenses. It ties up cash, while its refund depends on the lease terms.
Working capital
Working capital is additional to the setup estimate. It provides cash for running the store while customer collections build.
Do not assume that completing the store leaves enough money to operate it. Prepare a month-by-month cash-flow estimate that includes rent, payroll, utilities, supplies, delivery, royalty and other recurring payments.
CapEx versus OpEx: separate setup from operation
For budgeting purposes, capital expenditure, or CapEx, covers assets such as machinery and eligible fit-out work. Operating expenditure, or OpEx, covers recurring costs such as salaries, rent and consumable replenishment.
Other opening payments need separate treatment. A security deposit is cash committed under a lease. Working capital is a funding reserve. The franchise fee’s accounting treatment should be confirmed with your accountant.
Keeping these categories separate prevents a common mistake: treating every opening payment as equipment investment, then overlooking recurring cash needs.
What monthly expenses should you plan for?
Staffing is a major part of the operating budget. Clean Craft supplied the following approximate monthly salaries:
| Role | Estimated monthly salary |
|---|---|
| Store in-charge, if the owner does not manage the store | ₹18,000 |
| All-round dry-cleaning expert | ₹22,000–₹25,000 |
| Press operator | ₹18,000–₹22,000 |
| Rider | Approx. ₹20,000 |
| Payroll with a hired store in-charge | ₹78,000–₹85,000 |
| Payroll with the owner managing the store | ₹60,000–₹67,000 |
For the 350 sq. ft. rent example, rent plus payroll would be approximately:
• Owner-managed store: ₹77,500–₹93,250 per month.
• Store with a hired in-charge: ₹95,500–₹1,11,250 per month.
These are partial operating costs, not complete monthly expense estimates. They exclude electricity, water, consumable replenishment, delivery running costs, repairs, applicable employment costs and other outgoings.
Clean Craft’s stated royalty is 7%, excluding GST. Confirm the contractual calculation base, billing frequency and applicable tax before modelling the monthly payment.
The first year’s software is free; include its renewal charge in later-year projections once confirmed.
How much working capital should you keep?
Build the reserve from expected cash outflows and realistic collections, rather than choosing a round number without checking expenses.
For perspective, three months of rent and payroll alone in the example above would be:
| Operating model | Three-month rent-and-payroll illustration |
|---|---|
| Owner-managed | ₹2.33–₹2.80 lakh |
| With a hired store in-charge | ₹2.87–₹3.34 lakh |
These amounts are not complete working capital recommendations. Utilities, replenishment, royalty and other payments must still be considered. The required reserve will also depend on customer collections and how quickly orders develop.
Avoid counting the first month’s rent twice if it has already been paid in advance.
Does this fit a ₹20–35 lakh investment budget?
With a ₹20 lakh budget: The listed Clean Craft setup exceeds the budget before additional opening costs. It would be inaccurate to describe this package as a ₹20 lakh total investment.
With a ₹25 lakh budget: You are close to the listed setup amount, but still need additional funds for transportation, rental payments and working capital.
With a ₹30–35 lakh budget: There is more room for these additional requirements. Whether the budget is sufficient depends on the property, transport quote, staffing model, final fit-out scope and cash reserve.
For example, a ₹30 lakh budget leaves approximately ₹5 lakh after allowing Approx. ₹25 lakh for setup. That balance must cover every additional requirement; it is not automatically spare cash.
Compare franchise quotes on the same basis
A franchise-fee-only quote cannot be compared directly with a proposal that includes machinery, initial supplies, infrastructure and GST.
Use the same questions for each quotation:
1. Are taxes included in every displayed amount?
2. Which machines, capacities and warranties are specified?
3. Are civil work, electrical work, drainage and exhaust ducts included?
4. What changes if the property is larger or needs additional work?
5. Who pays transportation, advance rent and the security deposit?
6. What royalty, software and other recurring charges apply?
7. How much operating cash remains after opening?
Clean Craft’s breakdown gives investors separate allocations for the major setup components. Its practical value comes from connecting those allocations to an agreed design, vendor scope and written quotation.
Get a budget for your proposed location
Clean Craft’s listed franchise setup is Approx. ₹25 lakh including GST, with transportation, advance rent, security deposit and working capital additional.
Request a location-specific Clean Craft franchise proposal with your city, proposed store area and total available budget. Ask for the equipment schedule, infrastructure scope, tax breakdown and additional opening costs together, so you can assess the complete cash requirement before committing.
