- 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.
- Business Services
- Related Categories
- Coworking Spaces, Miscellaneous Business Services
- Parent Company
- International Workplace Group (IWG)
- Wayne Berger, CEO, The Americas
- Corporate Address
3000 Kellway Dr., #140
Carrollton, TX 75006
- Franchising Since
- 2012 (2023-2012 years)
- # of employees at HQ
- 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
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $549,000 - $998,000
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 10 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
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-opsNewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresLease NegotiationField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Co-op AdvertisingAd TemplatesNational MediaRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Interested in ownership opportunities like Regus? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where Regus landed on this year's Franchise 500 Ranking versus previous years.
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