Regus Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$20,000
Investment required
$940,000 - $1,918,000
Royalty fee
6.00%

Regus: Innovating Flexible Workspace Solutions

Established in 1989 by entrepreneur Mark Dixon in Brussels, Belgium, Regus has evolved into a global leader in providing flexible workspace solutions. As part of the International Workplace Group (IWG), Regus offers a diverse portfolio of office formats, coworking environments, business lounges, and meeting rooms, enabling businesses and individuals to work where, when, and how they want.

Headquartered in Luxembourg, Regus began its franchising journey in 2019, aiming to expand its network through strategic partnerships. The company's first franchised center opened in London, marking a significant milestone in its growth strategy.

What sets Regus apart in the competitive flexible workspace market is its extensive global presence, with thousands of locations in over 120 countries, and a business community comprising 2.5 million people. This expansive network provides clients with unparalleled flexibility and choice, catering to the increasing demand for hybrid working models.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Initial Franchise Fee $20,000
Signage $16,000 – $35,000
Office Equipment, Supplies & Misc. $5,000 – $8,000
Hardware and Software $45,000 – $52,500
Payments $50,000 – $215,000
Real Estate and Improvements $416,000 – $835,000
Furniture, Fixtures and Equipment $325,000 – $645,000
Insurance $2,000 – $6,000
Utility Deposits – Telephone, Internet, Other Technology $2,000 – $3,000
Business Licenses & Permits $500 – $3,000
Professional Fees $3,000 – $10,000
Grand Opening Advertising $5,000 – $10,000
Additional Funds/Working Capital $50,000 – $75,000
Total Estimated Initial Investment for a Single Regus® Office Franchise Agreement $939,500 – $1,917,500

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Number of units

2023
Franchised units

0

1

2

Company-owned units

800

781

762

Total units

800

782

764

Franchise Disclosure Document

Training

The training provided by Regus to franchisees is designed to ensure the effective operation of Regus Offices. It includes:

  1. Initial Training:
    • Sales Manager Training: A 30-day program comprising 15 days at the franchisee’s office or a nearby location and an additional 15 days of on-site assessment and accreditation. This training covers compliance, products, customer management, and operational management.
    • Community Manager and Community Associate Training: A minimum of 30 days prior to opening, focusing on the roles, systems, tools, and operational essentials.
    • General franchisee onboarding training includes an overview of the system and responsibilities.
  2. Ongoing Training:
    • Continued guidance in various formats, such as telephone or electronic support, tailored as necessary to maintain operational standards.
  3. Online Training Academy:
    • Accessible for franchisee employees, focusing on skill development essential for managing Regus Offices.
  4. Additional Training Requirements:
    • If required, retraining for franchisee personnel to meet the franchisor's standards is mandated at the franchisee’s expense.

Territory Protection

Regus does not provide exclusive territory protection to its franchisees. Franchisees may face competition from other franchisees, franchisor-owned outlets, and other distribution channels.

Additionally, Regus can negotiate national account agreements, requiring franchisees to provide services under such contracts, potentially overlapping with their operations.

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