IWG Franchise Information

In the dynamic post-COVID world, as we transition to a hybrid working model, the opportunities are not just for employees and employers, but also for anyone with commercial space. These spaces are no longer just the realm of traditional office landlords; they are hotbeds of potential for innovative uses. Traditionally, commercial office spaces depended on long-term capital leases, often spanning 10 years or more. However, the rise of remote and hybrid work models, coupled with the rapid evolution of workplace culture, has led many employers to downsize or completely forgo their physical offices. This shift opens up an exciting, high-demand market for flex spaces. Landlords and commercial space owners are now uniquely positioned to tap into this burgeoning market. The time is ripe for those ready to seize these emerging opportunities and reimagine the future of commercial spaces.

By partnering with IWG, commercial landlords and institutional investors in markets both large and small have an opportunity to cater to the demand for flexible workspaces and shorter leases. As opposed to a traditional capital lease, landlords, building owners and institutional developers can sign a partnership agreement with IWG and invest the capital in converting the space into a flexible workspace office. This provides landlords and business investors with operating income from day one, a higher return on net assets and increased flexibility, similar to how Airbnb has distributed residential real estate.

IWG offers a remarkable chance for anyone possessing vacant space — there's a surge in demand, making this the ideal moment to take action. Partnering with IWG, a frontrunner in workspace solutions, makes seizing this opportunity both straightforward and effortless.

Learn more at https://www.iwgplc.com/en-gb/develop-a-location.

IWG helps more business and workers worldwide than any other provider, from 8 million users to 85% of the Fortune 500. This unprecedented presence ensures organizations can tap into the ubiquity and convenience they desire — both employers and employees know they can rely on IWG to meet all of their workspace needs.

Landlords, building owners and institutional investors interested in partnering with IWG to bring these in-demand flexible workspaces to their community will not only get the benefits of a tried and tested business model and over 30 years of experience in the workspace industry, but they will also tap into the resources and support of a multi-brand, global powerhouse in flexible workspaces.

To start, IWG sits down with every prospective investor and lays out a financial model to showcase when they will recoup their investment and how they can drive income and bring in a premium over-market rent, helping building owners understand their best floor plan. 

Once the agreement is signed, IWG has a team for design, construction, sales, marketing and everything needed to build, operate and launch a successful new flexible workspace.

Thanks to IWG’s unmatched resources and expertise, partners will also have access to the most lucrative real estate opportunities for their locations. IWG has established more than 1,000 locations in the U.S. alone over the past 23 years. The company knows what works, and it has the technology and evaluative resources to ensure that it finds and closes on only the best locations.

Rather than simply working from home or the office, more and more employees are expressing a desire for a third option — a hub-and-spoke model where they go to a flexible workspace every day in their local communities. In a recent IWG survey, 77% of workers said a place to work closer to home was a must-have for their next job move. What that says is there is a systemic shift in how people are choosing to work. 

With this evolution in work culture, the global flexible workspace industry is projected to nearly double in size, from $7.97 billion to $13.03 billion, by 2025. Companies are increasingly responding to employee demand for local working by downsizing their main office and utilizing satellite offices or flexible workspaces closer to workers’ homes. The trend is mirrored by the growing popularity of the 15-Minute City, a sustainable planning concept in which work, home, shops, entertainment, education and healthcare are all within 15 minutes on foot or by bicycle from where we live. 

Now, as organizations increasingly adopt a hybrid approach to working, in which employees spend a few days at home and a few days in an office, the flexible workspace industry is exploding in popularity, and everyone from commercial landlords to institutional investors have an opportunity to take advantage by partnering with IWG.

The total investment necessary to begin operation of a single-unit Regus® Office is from $939,500 to $1,917,500. This includes $20,000 that must be paid to the franchisor. If you sign a Multi-Site Development Agreement, you pay a Development Fee equal to the sum of the initial franchise fee for the first Regus® Office to be developed, plus 50% of the initial franchise fee for each additional Regus® Office you agree to develop. The total investment necessary to enter into a Multi-Site Development Agreement with the development rights of 2 to 5 Regus® Offices is from $1,118,000 to $5,270,000. This includes between $40,000 for 2 locations and $100,000 for 5 locations that must be paid to the franchisor.

International Workplace Group (IWG) is the world’s leading workspace provider with over 4,000 locations across 1200 cities worldwide. The IWG portfolio of brands includes global leading workspace brands such as Regus, its professional workplace brand; Spaces, its creative workplace brand; HQ, its hassle-free workplace brand; and its luxurious workspace brand, Signature.

IWG provides businesses of any type or size with flexible workspace solutions in convenient locations alongside industry-leading technology, enabling teams to collaborate better and more seamlessly. Businesses can significantly save on cost and mitigate risk through a flexible arrangement built around their needs. IWG helps millions of businesses work more productively and sustainably and offers workers a happier and healthier work-life balance. It provides a choice of professional, inspiring and collaborative workspaces, communities and services. 

Businesses are now juggling various drivers that are transforming the workspace landscape from digitalization and new technologies to worker expectations to economic challenges. IWG's solutions have made navigating these drivers super simple and easy.

People want the personal productivity benefits of living and working how and where they want. Businesses want financial and strategic benefits. IWG’s customers are start-ups, small and medium-sized enterprises and large multinationals with unique business goals, people and aspirations. They want workspaces and communities to match their needs. They want choice. Through its companies, IWG creates personal, financial and strategic value for businesses of every size, from some of the most exciting companies and well-known organizations on the planet to individuals and the next generation of industry leaders. All of them harness the power of flexible working to increase their productivity, efficiency, agility and market proximity. 

By establishing IWG workspaces in every town, city and major transport hub worldwide, everyday people increasingly have access to a communal workspace that provides human interaction and meets social needs without having to travel to the corporate office each day.