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- 2022 Franchise 500 Rank
#251 Ranked #126 last year
- Initial investment
$394K - $1.3M
- Units as of 2021
75 44.2% over 3 years
Here’s what you need to know if you’re interested in opening a Office Evolution franchise.
Office Evolution is a coworking franchise that caters to professionals who want a safe and productive place to work outside of the home, as well as employers who realize the importance of a distributed workforce. With over 60 franchised units across the United States, Office Evolution also offers an intelligent alternative to small business owners and even multinational companies who prefer the overall efficiency of renting ready-to-use workspaces instead of buying and maintaining their own.
With almost two decades of experience, Office Evolution has grown to become one of America's biggest locally owned and operated coworking franchise companies.
Why You May Want to Start an Office Evolution Franchise
Ohana culture is a major positive force behind the success of Office Evolution franchises. Ohana is Hawaiian for family, and the word reflects the relationship between the company and its franchisees. When you become a franchisee, expect the support team to be a dedicated bunch—they operate out of the same Ohana spirit as everyone else involved with Office Evolution.
Office Evolution is a recurring revenue business that has enjoyed sustained growth and expanded its network greatly since beginning to franchise in 2012. These franchises are also easy to operate, with the corporate office handling all back-office responsibilities so you can focus on expanding your business. Office hours are the typical 8AM to 5PM, Monday–Friday, and you can hire a handful of people to manage your property.
What Might Make Office Evolution a Good Choice?
Office Evolution has been ranked in Entrepreneur's Franchise 500 multiple times in recent years. This ranking is based on an evaluation of more than 150 data points in the areas of costs and fees, size and growth, franchisee support, brand strength, and financial strength and stability.
There are people–including global financial and professional services firm JLL–who believe that shared office space will have an even more major impact on the workforce by 2030. With such industry potential, the brand is classified as an essential service.
To become an Office Evolution franchisee, you should make sure you're financially ready for an initial investment that will include a franchise fee and other startup fees. You should also be prepared for ongoing fees that will include royalty fees, advertising fees, and potential renewal fees.
How to Open an Office Evolution Franchise
If you're interested in the Open Evolution franchise and have filled out the proper forms, the company may review your information and see if you are financially ready to open a franchise. If they like what they see, they may give you a call. They will start by detailing the business, your territory options, and other information you need to know about the company and its franchises.
You may also speak with a few franchisees to validate what you have learned about the franchisor. A franchise representative may then endorse you to the company's real estate experts while the franchise team drafts the term sheet and performs a background check on your assets.
When everything checks out, you may be invited to ohana day. Here, you'll meet everyone at the corporate headquarters in Louisville, Colorado. You will also sign your franchise agreement, pay your initial fees. Then, you will officially be part of the Office Evolution ohana.
About Office Evolution
- Franchising Since
- 2012 (10 years)
- # of employees at HQ
- Where seeking
This company is seeking new franchisees throughout the US.
- # of Units
- 75 (as of 2021)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Office Evolution 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
- $393,650 - $1,318,300
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
- Office Evolution has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll
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
- 8 hours
- Classroom Training
- 32 hours
- Ongoing Support
Purchasing Co-opsMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportSecurity & Safety ProceduresLease NegotiationField OperationsSite SelectionFranchisee Intranet Platform
- Marketing Support
Co-op AdvertisingAd TemplatesNational MediaRegional AdvertisingMarketing Planning & SupportSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- 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.
- # of employees required to run
- 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.
Franchise 500 Ranking History
Compare where Office Evolution landed on this year’s Franchise 500 Ranking versus previous years.
Curious to know where Office Evolution ranked on other franchise lists? Find out below.
Are you eager to see what else is out there? Browse more franchises that are similar to Office Evolution.
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