Linen Supply Route
Clean linens, dirty-reliable recurring revenue
Bottom line
Worth studying, but do not buy without strong local proof.
Linen supply businesses provide laundered linens, uniforms, and towels to restaurants, hotels, salons, and medical facilities on a recurring delivery schedule. Customers sign service agreements, creating predictable weekly revenue. The business requires a processing facility or partnership with a commercial laundry.
Avg Revenue
$500K
Profit Margin
25%
Acquisition Multiple
2x - 3x
Startup Cost
$100K - $400K
How It Works
Sign commercial clients to weekly service agreements. Pick up soiled linens on a scheduled route, process them at your laundry facility, and deliver clean ones on the next visit. Revenue comes from per-piece or per-pound fees billed weekly or monthly. Clients include restaurants, hotels, spas, and medical offices.
Revenue Range
BizBite underwriting snapshot
Pass for now
Linen Supply Route has enough high-level data for a first look, but BizBite has not assigned a category-specific operating model yet. Treat the score as preliminary.
Category-level fit before lender-specific diligence.
Weak source data caps the final score.
Why it may work
- No strong positives yet. More verified data needed.
Be careful
- !Source link status has not been verified yet
- !No last-checked date yet
- !No category operating model yet
- !No category model yet
Real Acquisitions in This Category
SBA 7(a) change-of-ownership loans · NAICS 812331 · Linen Supply
Deal Size Distribution
Financing Profile
Recent Comparable Deals
| Closed | State | Loan | Implied deal |
|---|---|---|---|
| Aug 2023 | NJ | $625K | $735K |
| May 2023 | NY | $725K | $853K |
| May 2023 | NY | $50K | $59K |
| Feb 2023 | CA | $503K | $591K |
| Jun 2022 | WY | $4.7M | $5.5M |
Source: SBA 7(a) FOIA dataset, filtered to acquisitions (loans where business age is "Change of Ownership"). Implied deal size assumes an 85% loan-to-purchase ratio, a common SBA change-of-ownership structure. Charge-off rate shown only when 10+ loans have resolved (paid in full or charged off). Interest rates reflect last 24 months only. Actual deal values vary with equity injections, seller financing, and working capital terms.
Pros
- +Contractual recurring revenue with high retention
- +B2B clients are more reliable than consumer clients
- +Essential service — businesses need clean linens daily
- +Route density improves efficiency and margins over time
Cons
- -Requires significant capital for laundry processing equipment
- -Lost and damaged linen is an ongoing expense
- -Industrial laundry equipment maintenance is specialized
Best For
Operators who want B2B recurring revenue in an essential service
Operating Costs
Laundry processing (water, gas, chemicals, labor), delivery route costs, linen replacement, facility rent, and vehicle maintenance.
SBA Financing Estimator
Adjust the deal — see if it cash flows after debt service
Estimates only. Excludes owner compensation, capex, working capital draws, and taxes. Margin assumes average occupancy and volume. Actual SBA terms vary by lender and borrower profile.
Where to Buy
Find linen supply and commercial laundry businesses
Browse linen service business acquisition opportunities
Acquisition Score
Scores margin (30), entry multiple (25), SBA market depth (20), category risk (15), and deal momentum (10). Higher = better acquisition candidate.
Quick Facts
- Category
- route
- Difficulty
- 3/5
- Buy price
- $1.0M–$1.5M
Buyer's Toolkit
Essential tools to get started
Some links may be affiliate links. We only recommend tools we'd use ourselves.
Ready to Buy? Start Here →
Largest business-for-sale marketplace in the US
SBA loans and business acquisition financing — get funded fast
ROBS financing — use retirement funds to buy a business tax-free
Bookkeeping for small business owners — hands-off financials
Some links may be affiliate links. We only recommend tools we'd use ourselves.
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