LOI (Letter of Intent)
An LOI, or letter of intent, is a written outline of the principal terms of a proposed purchase: price, structure, what is included, the diligence window, exclusivity, and conditions. It is usually non-binding on price and binding on confidentiality and exclusivity.
Why LOI Matters in a Laundromat Sale
The LOI sets the frame everything after it argues within, so terms omitted at LOI stage are hard to introduce later. It also starts the exclusivity clock, during which a seller stops taking other offers — which is why a seller should test a buyer's financing capacity before granting it, not after.
Example
An LOI sets $420,000, a 45-day diligence period, exclusivity for 60 days, a $10,000 deposit at signing, allocation to be agreed, and a two-week seller training period. Everything not specified — non-compete radius, stored-value liability treatment, prorations — becomes a negotiation during purchase-agreement drafting.
What to Check
- Put every material term in the LOI; anything omitted becomes a fight during drafting.
- Set a defined diligence window and an exclusivity period that matches it.
- Verify the buyer's financing capacity before granting exclusivity, not after.
Where This Comes Up
- Laundromat Letter of Intent: What Belongs In It and What Does Not
- Negotiating a Laundromat Purchase: Price, Terms, and Leverage
- Laundromat Sale Timeline From LOI to Close: Week by Week
Related Terms
- APA (Asset Purchase Agreement) — An APA, or asset purchase agreement
- Earnest Money — Earnest money is a deposit a buyer places when signing a letter of intent or purchase agreement to demonstrate commitment
- Contingency — A contingency is a condition that must be satisfied before a buyer is obligated to close
- Deal Room — A deal room is the organized repository — physical or online — holding every document a buyer and lender need for diligence
See the full laundromat glossary for all 78 terms.
The Next Step
This page is general information about laundromat transactions, not legal, tax, or investment advice, and not a guarantee of sale price, timing, or financing approval. Verify current rules with your own CPA, attorney, lender, and the relevant state or municipal agency before acting.