Regus, the leading global flexible workspace provider and an International Workplace Group (IWG) company, announced today the launch of its new U.S. franchise program. The company is currently seeking driven, committed franchise partners to capitalize on the significant demand for flexible, contemporary coworking spaces across the United States, specifically targeting California, Florida, Texas, Illinois and the Northeast including, Pennsylvania, New York, Virginia and Washington D.C. for aggressive development.
Regus created the flexible workspace concept and has been the industry's global leader since its inception 30 years ago. The brand's keen understanding of the market has enabled Regus to develop its business model through many economic cycles. The proven and scalable operating model can provide franchisees with a highly attractive return on their investment. Franchisees will benefit from IWG's built-in network of 2.5 million customers, including some of the most successful entrepreneurs, individuals and multi-billion-dollar companies, that instantly become available to franchise owners upon opening.
"Since 2010, the flexible workspace sector has grown at an average annual rate of 25%, and by 2020, it's estimated that 50% of all workers will be remote most of the time. This dramatic shift in the office space market is creating a demand for more flexible space options and forcing building owners to adapt," said Darin Harris, CEO of IWG, North America. "To meet the growing demand, we are looking to rapidly expand our network through franchising. This is an unprecedented investment opportunity, and our franchise partners will benefit greatly by leveraging our scale and proven business model."
An excellent addition to a restaurant/retail/hospitality heavy portfolio, the Regus brand has a strong economic model with low employment costs. The brand has stood the test of time, even through up and down economies, and continued to grow over the years. In addition, Regus provides multiple revenue streams, including monthly membership programs (with an approximately 70% retention rate), commission for selling other locations within the brand's inventory and MyRegus app bookings, among others. The average revenue of the top two-thirds of locations is between $1 and $1.75 million with profitability or earnings before interest, taxes, depreciation and amortization (EBITDA) of $190,000 to $265,000. Regus is not just a smart investment opportunity, it's an opportunity to have a great day at work every day.
Although flexible office and other emerging offerings like coworking account for less than 5% of current office inventory today, JLL, a commercial real estate service firm, projects this figure could rise to 30% by 2030 due to insatiable levels of tenant demand for flexible-term spaces. In addition, a recent IWG Economic Study found that flexible working is set to contribute over $10 trillion to the global economy by 2030. While concentrated in gateway cities, urban cores, and knowledge centers around the world, the flexible workspace sector's geographic footprint is beginning to extend to more suburban locations and secondary cities.
Regus is seeking qualified franchisees with the organizational and financial capabilities to open a minimum of five locations no smaller than 10,000 square feet over a two- to three-year period. Franchisees should have a minimum net worth of $1 million and a minimum of $350,000 in liquid assets per location. The initial investment ranges from $650,000 – $1.7 million per location with a $50,000 initial franchise fee. Qualified franchisees should have at least three years of outside sales management experience and two years of community marketing experience with a sales team of at least five people. Franchisees must also be committed to uphold operational and image standards of the Regus brand.
Regus will work closely with and assist its franchisees in finding and designing locations. Franchisees will benefit from the customer service Regus is known for, as well as provide access to platforms including marketing, sales and IT. For more information on Regus franchise opportunities, please call 833-IWG-FRAN or visit https://franchise.iwgplc.com/.
About RegusRegus is the leading global workspace provider. We have built an unparalleled network of office, coworking and meeting spaces for companies to use in every city in the world. It's a global infrastructure built for businesses to support every opportunity. Our network of workspaces enables businesses to operate anywhere, without the need for set-up costs or capital investment. It provides our customers with immediate cost benefits and the opportunity to fully outsource their office portfolio. Designed to enhance productivity and connect like-minded professionals, it's an instant global community and a place to belong.
About International Workplace Group (IWG)IWG believes that business success is underpinned by the effectiveness and happiness of its people, so we made it our mission to help millions of people have a great day at work – every day. We do this by giving people and businesses access to a world leading commercial real estate platform; drawing on a 30 year track record of delivering the best real estate solutions for businesses; in every country, city, town and transport hub worldwide. It's a risk-free option, with zero balance sheet impact, and a great solution for people as it's designed with productivity in mind. IWG's real estate solutions are simple to use, with a full suite of business support services to enable people to focus on their core business and enjoy a great day at work.
IWG offers an unrivalled choice of workspaces through its operating companies; Regus, Spaces, HQ and Signature by Regus – each designed to serve the unique needs of businesses of every size.