The flexible workspace and coworking leading provider is seeking franchisees to reap the rewards of the fast-growing sector under its Regus brand
IWG – the world’s largest provider of flexible workspace – has launched a franchise program in the USA to meet rocketing demand for flexible, modern office space across the States.
The company is seeking committed, driven franchise partners to open up Regus centres across North America, where there are huge gains to be made in the flexspace industry.
The new national franchise program will specifically target California, Florida, Texas, Illinois and the Northeast – including Pennsylvania, New York, Virginia and Washington DC – rapidly expanding Regus’s footprint on the continent.
Ever since its debut 30 years ago, Regus has led the global flexible workspace movement. The proven scalability of the Regus brand, combined with IWG’s market expertise and its network of 2.5 million customers, will attract the attention of franchisees, especially current multi-brand partners,who may have been eyeing the international coworking boom with interest.
“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,” says 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.”
Along with its strong economic growth, low employment costs and proven staying power, Regus brings a range of revenue streams. These include monthly membership program – with a retention rate of around 70% – and commission for selling other Regus locations. To give an indication, the average profitability or earnings of the top two-thirds of Regus Centres – before interest, taxes, depreciation and amortisation (EBITDA) – is between $190,000 and $265,000.
Now is the time to claim a slice of the flexspace sector, as it sits on the cusp of exponential growth. Today, it accounts for less than 5% of office inventory but, according to commercial real estate firm JLL, this will rocket to 30% by 2030. By the same year, flexible working will contribute more than $10trn to the global economy, according to a recent IWG study.
To meet its aggressive plans for expansion, Regus is seeking US franchise partners with the means to open at least five locations over a two-to-three-year period – each one no smaller than 10,000 square feet. Franchisees will need a net worth of at least $1m, and a minimum of $350,000 of liquid assets per location. Initial investments range from $650,000 to $1.7m per location, with a $50,000 initial franchise fee.
Franchisees should also have at least three years’ sales management experience and two years’ worth of expertise in community marketing, working with a sales team of at least five people. A commitment to upholding Regus’s high operational and reputational standards is also a must.
Regus will work closely with franchisees to find and design flexible office spaces. Franchise partners will also have access to marketing, sales and IT support and leading platforms throughout the process.
The new US franchise program with Regus is the latest major international expansion strategy for IWG. Others include the thriving Regus franchise platform launched in the UK this year and across the globe, plus the roll-out of Regus and Spaces locations worldwide.
Interested in becoming a Regus franchise partner? Please call 833-IWG-FRAN or visit franchise.iwgplc.com
This information is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. It is for information purposes only. If you are a resident of a U.S. state that regulates the offer and sale of franchises, are receiving this message in one of those states, or intend to operate a franchise in any of those states, we will not offer you a franchise unless and until we have complied with any applicable pre-sale registration and/or disclosure requirements in the applicable jurisdiction.
