Coworking Space Franchise Cost of Best Franchises

As the twenty-first-century advances, the workforce sector is evolving. The location used to be important for many jobs. To get the job done, professionals are required to interact face-to-face with their clients and coworkers. In many occupations today, the requirement for face-to-face interaction has been supplanted by a laptop and an internet connection. This is only one of the factors that led to the development of the coworking franchise industry. This blog will give you an overview of the best co-working space franchises in the US and Canada. If you are looking forward to buying or investing in any coworking space franchise, this blog is a must-read for you. 

 

 

How much is the cost to start a Coworking space franchise?

Several elements, including the location and size of the space, the amenities provided, the franchise fee and ongoing royalties levied by the franchisor, as well as the facilities and amenities given, can have a considerable impact on the cost of opening a coworking space franchise.

Some estimates place the initial investment required to launch a coworking space franchise between $200,000 and $500,000 or more. This does not include ongoing monthly expenditures like rent, utilities, and other fees. Before deciding to start a coworking space franchise, it is crucial to thoroughly consider the costs involved and make sure you have a sound business plan in place.

 

Are Coworking space franchises profitable?

The profitability of a coworking space franchise can vary greatly based on a lot of circumstances, thus there is no straightforward solution to this topic. These variables may include the franchise’s size and location, local coworking space demand, local competition, the caliber and range of services provided, and the franchise’s general effectiveness and management.

 Before investing in a franchise, it’s crucial to give these and other aspects significant thought. You should also conduct in-depth market research to make sure the franchise has the potential to be lucrative. To learn more about the potential profitability of a coworking space franchise, it is also a good idea to consult with franchisees and business professionals.

 

Competition Analysis of Coworking Space Franchise
Franchise Brand	Cost to Franchise	Franchise Fees	Royalty + Ad fees	Expected Profit	Recoup of Capital	FD Rating
Coworking Space	$200,000 and $500,000	$79,500	–	–	–	–
Regus Franchise	$549,000 – $998,000	$50,000	Royalty fee 6%+Ad fee 2%	51% less than the franchise fee	N/A	2.5/5.0
WeWork Franchise	–	–	–	The company posted revenue of $815 million	–	4.0/5.0
Office Evolution Franchise	$400k – $1.3M	$39,500 – $49,500	A royalty fee is 7.5% and Ad Fee is 3%	Not disclosed in FDD	Not disclosed in FDD	3.3/5
Venture X Franchise	$1.1 million-$3.4 million	$79,500	A royalty fee is 6% and an Ad fee is 2%	Not disclosed in FDD	Not disclosed in FDD	3.0/5.0
Red Barn Franchise	$40,000	$10,000	N/A	Not disclosed in FDD	Not disclosed in FDD	2.8/5.0
Success space franchise	$454,650-$776,150	$30,000 – $45,000	A royalty fee is 6% and the Ad fee is 1%	Not disclosed in FDD	Not disclosed in FDD	2.5/5
Intelligent Office Franchise	$330,000-$1.2 million	$49,500	6% + 2%+	–	–	4.0/5.0

 

Why Start a Franchise of Coworking space business?

One can think of opening a coworking space franchise for a variety of reasons. These are some potential advantages of this kind of business:

1. Growing demand

As more and more people choose to work from home or as independent contractors, coworking spaces have gained popularity in recent years. Solutions for flexible shared workspaces are now in demand as a result.

2. Low overhead

Because several companies and individuals frequently share coworking spaces, they typically have lower overhead costs than traditional office spaces.

3. Flexibility

Because coworking spaces provide flexible lease terms, people and businesses can grow or shrink as needed.

4. Opportunities for networking

Coworking spaces frequently offer occasions for connecting with and working with other professionals and companies.

5. Community

For freelancers and business owners, coworking spaces may foster a sense of belonging and support.

Do not forget that launching a business, especially a franchise for a coworking space, entails risk and necessitates thorough planning and preparation. Before deciding to launch a franchise for a coworking space, it is crucial to conduct extensive market and competitive research, as well as cost and potential return on investment calculations.

 

Pros and Cons of Coworking Space Franchise

The following are some potential benefits and drawbacks of opening a coworking space franchises.

Pros

1. Growing demand

There is a growing need for flexible, shared workspace solutions as more people choose to work from home or as independent contractors.

2. Low overhead

Because numerous companies and people frequently share coworking spaces, they typically have lower overhead costs than traditional office spaces.

3. Flexibility

Coworking spaces have flexible lease terms, enabling organizations and individuals to grow or shrink as necessary.

4. Opportunities for networking

Coworking spaces frequently offer occasions for connecting with and working with other professionals and companies.

5. Community

For freelancers and business owners, coworking spaces may foster a sense of belonging and support.

Cons

1. Competition in the coworking sector is becoming more and more cutthroat, making it challenging to set your company apart from the competition.

2. Starting a coworking space franchise can be expensive, requiring an initial investment of $200,000 to $500,000 or more.

3. Expenditures incurred continuingly: Rent, utilities, and other costs incurred in maintaining a coworking space.

4. Management difficulties: Managing a coworking space can be difficult because you will be in charge of upkeep, membership recruitment, and retention, and guaranteeing a great user experience for everyone.

5. Beginning a coworking space franchise entails risk, just like starting any other type of business, and success is not guaranteed. Before deciding to open a coworking space franchise, conducting a thorough market and competitive analysis and a cost and possible return on investment study is crucial.

 

Which is the best Coworking space franchise to own?

There are numerous additional coworking space franchises in operation in the US, thus this list is by no means complete. To discover a franchise that fits your goals and budget, it’s a good idea to research a range of franchises. 

Here are 6 of the best Coworking space franchises in the United States and Canada.

1. Regus franchise
2. Success space franchise 
3. Wework franchise 
4. Venture x franchise 
5. Office evolution franchise 
6. Intelligent office franchise 

 

Regus franchise

A Regus center’s upfront fee is $50,000. You will need to make an initial investment in addition to the franchise fee, which covers the cost of renting or buying a space, setting up the center, and purchasing furniture and equipment. Depending on the size and location of the facility, the initial investment for a Regus will cost in the range of  $549,000 – $998,000.

https://youtu.be/Syzmdsxi1wc

 

Success space franchise 

Before opening a SUCCESS Space, it’s critical to understand the startup costs, including the franchise fee and working capital. A SUCCESS Space can be opened for as little as $454,650 and as much as $776,150 in total investment.

 

Wework franchise

WeWork is a coworking space provider that gives people and corporations adaptable office options. They do not currently provide franchise options, so I am not aware of any franchise fees.

On the other hand, WeWork has its co-working locations and does not permit outside parties to utilize its name or business strategy to run co-working locations. If you’re thinking about opening a co-working space, you might look into other businesses that provide franchising opportunities in this industry. 

 

Venture X franchise 

You can anticipate investing between  $1.1 million-$3.4 million as a Venture X franchisee, which does include your $79,500 upfront fee. You must have a minimum net worth of $1,000,000 and $250,000 in liquid money to purchase a franchise with Venture X.

 

Office evolution franchise 

You must have a minimum net worth of $750,000 and $300,000 in liquid money to purchase an Offices Evolution franchise and anticipate a cost of anywhere between $288,000 to $853,000. Veterans can also receive a discount from them. In cases where the partner has at least $175K in working capital, they also discover a solid financial fit.

 

Intelligent office franchise 

The services offered by Intelligent Office are exactly what modern businesses require, and they give franchise owners a variety of income streams. You must have a minimum net worth of $750,000 and $300,000 in liquid money to purchase an Intelligent Office franchise. Franchisees might anticipate investing anywhere from $330,000 to $1.2 million in total. Additionally, they provide financing and provide veterans a discount ($49,500 Franchise Fee).

 

Top and Best Coworking Space Franchise in the USA in 2023

Best Coworking spaces franchise in the United States.

1. Regus Franchise
2. Success Space
3. Office Evolution
4. Intelligent Office Space

What is a Coworking space business?

WeWork, Regus, and Office Evolution are a few well-known coworking space franchises in the United States. Choosing which is “best” can be challenging because it depends on each person’s needs and tastes. When searching for a coworking space, factors to consider can be the location and accessibility of the spaces, the cost and value for money, the services and amenities provided, and the overall atmosphere and community of the workspace. To identify the solution that most closely fits your demands, it could be beneficial to conduct some research and compare the available possibilities.

Conclusion: Should you buy a Coworking space Franchise for Sale?

Coworking space franchises can be a good choice for some people, but they may not be the best choice for everyone. The above blog might have already given you an overview of all the pros and cons of the coworking space franchise in the US and Canada. I hope this information is sufficient for you to decide whether to go ahead with any particular coworking space you were willing to invest in. Ultimately, whether a coworking space franchising is a good choice for you will depend on your specific goals, budget, and level of experience. It’s important to carefully consider all of the pros and cons before making a decision.

You can explore other coworking or real estate franchise opportunities,

1. Red Barn Franchise 
2. Regus franchise
3. Success space franchise 
4. Wework franchise 
5. Venturex franchise 
6. Office Evolution Franchise
7. Intelligent Office Franchise