Regus

Flexible/virtual offices, coworking spaces, meeting and training facilities

2023 Franchise 500 Rank: N/R Not ranked last year

Initial investment: $549K - $998K

Units as of 2021: 2,597 7% over 3 years

Regus provides private office spaces in thousands of locations all over the world. The business is part of the International Workplace Group and started in 1989. Regus began franchising in 2012.

Regus recognized that many companies are reluctant to sign expensive leases on fixed office space. In response, the company has built a network of global workspaces that may enable people to work where and when they want. Regus offers fully-equipped meeting rooms, and every client gets a personalized service that meets their specific needs.

Regus has not expanded much into the United States, but it is actively seeking to do so. It is also open to franchising more locations around the world.

Why You May Want To Start a Regus Franchise

Opening a Regus franchise may be an opportunity for an ambitious franchisee who would like to build a network of office locations. Franchisees do not typically need any prior business experience, but should be business-minded. This may also be a decent option for those looking to run a business remotely. You can, if you wish, run your business through a manager.

Regus has office spaces available in many important towns, cities, and transport hubs worldwide. Depending on their needs, a client can rent office space for an hour or years. If, for example, a company is working on a project for an important customer, it might be a good idea to rent an office near the company's headquarters for the project's duration.

What Might Make a Regus Franchise a Good Choice?

A Regus client can increase office space or switch locations as needed. This is a seemingly flexible response to growing demand as more and more businesses operate globally. That said, Regus is looking to expand into areas in the United States and globally that it does not yet cover with ten-year, renewable franchises.

To be part of the Regus franchise team, you should make sure you're financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include advertising, royalty, and potential renewal fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.

How To Open a Regus Franchise

One of the major things to consider before opening a Regus franchise is your area’s traffic and potential appeal in regards to a Regus franchise. In other words, are you in a sleeper city full of commuters, or are you the place that people commute to? There may also be local competition, so you should see what your competitors are offering and the prices they charge.

Before making any financial commitment or signing an agreement, you must perform your due diligence to establish if this is the right franchise opportunity for you. As part of your due diligence, you may want to speak to existing franchisees and ask the Regus franchising team questions. For example, how does the Regus franchise handle vacancies or periods of low interest? What do they do about companies who stayed with Regus but wanted to switch locations? How does a potential territory switch affect you?

If Regus approves you as a franchisee, you'll most likely undergo training and receive full support as you continue with them.

Company Overview

About Regus

Industry: Business Services

Related Categories: Coworking Spaces, Miscellaneous Business Services

Founded: 1989

Parent Company: International Workplace Group (IWG)

Leadership: Wayne Berger, CEO, The Americas

Corporate Address: 3000 Kellway Dr., #140
Carrollton, TX 75006

Social: Facebook, Twitter, LinkedIn, Instagram

Business Overview

Franchising Since: 2012 (11 years)

# of employees at HQ: 10,000

Where seeking

This company is offering new franchisees throughout the US.

This company is offering new franchisees worldwide.

# of Units: 2,597 (as of 2021)

Information for Franchisees

Here’s what you need to know if you’re interested in opening a Regus franchise.

Financial Requirements & Ongoing Fees

Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.

Initial Franchise Fee: $50,000

Initial Investment: $549,000 - $998,000

Net Worth Requirement: $1,000,000

Cash Requirement: $350,000

Royalty Fee: 6%

Ad Royalty Fee: 2%

Term of Agreement: 10 years

Is franchise term renewable?: Yes

Financing Options

Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.

Third Party Financing: Regus has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory

Training & Support Offered

Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.

On-The-Job Training: 80 hours

Classroom Training: 80 hours

Ongoing Support: Purchasing Co-ops

Newsletter

Meetings & Conventions

Toll-Free Line

Grand Opening

Online Support

Security & Safety Procedures

Lease Negotiation

Field Operations

Site Selection

Proprietary Software

Franchisee Intranet Platform

Marketing Support: Co-op Advertising

Ad Templates

National Media

Regional Advertising

Social Media

SEO

Website Development

Email Marketing

Loyalty Program/App