> At least in the state where I live, there are regulations that require car wash locations to recycle the runoff water. I don't see how this would be possible with this model.

I'm curious too. In the process of looking for relevant information (which I haven't found yet), I see that each washer Cherry contracts with in California will have to pay for a $250 per year car washer license. They'll have to do a pretty large number of washes before they start making any money.

http://www.dir.ca.gov/dlse/HowToObtainCarWashRegistration.ht...