Regus Franchise FDD, Profits & Costs (2025)
Regus, founded in 1989 by Mark Dixon, is a global leader in flexible workspace solutions. Headquartered in St. Helier, Jersey, it operates under IWG plc, established in 2016.
In 2018, Regus entered the UK franchise market as the first serviced office specialist to do so. This move allowed franchisees to leverage its proven business model, brand, and robust support systems for sales, marketing, and customer management.
Regus offers office spaces, coworking environments, virtual offices, and meeting rooms. These solutions cater to individuals, small businesses, and large corporations, ensuring flexibility in where and how they work.
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Initial Investment
How much does it cost to start a Regus franchise? It costs on average between $940,000 – $1,918,000 to start a Regus franchised office.
This includes costs for construction, furnishings, technology infrastructure, and initial operating expenses. The exact amount depends on various factors, including the size and configuration of the workspace, the location, and whether the franchisee chooses to lease or purchase the property.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchisee | $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 |
Average Revenue (AUV)
How much revenue can you make with a Regus franchise? A Regus franchised workspace makes on average $973,000 in revenue (AUV) per year.
This compares to $576,000 yearly revenue for similar coworking franchises. Below are a few Regus competitors as a comparison:
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We have compiled the list of the top 400 franchises across 9 industries. Download the report below.
Regus Franchise Disclosure Document
Frequently Asked Questions
How many Regus locations are there?
As of the latest data, Regus operates approximately 4,000 locations worldwide, spanning over 120 countries. In the United States, Regus has 1,631 locations, with California hosting the highest number at 206, accounting for about 13% of the U.S. total. The majority of these centers are company-owned, with a select number managed by franchise partners.
What is the total investment required to open a Regus franchise?
The total investment required to open a Regus franchise ranges from $940,000 to $1,918,000.
What are the ongoing fees for a Regus franchise?
The ongoing fees for a Regus franchise include a royalty fee of 6% of gross revenue, which contributes to the support and resources provided by the franchisor, such as operational assistance and brand management.
Additionally, franchisees are required to pay a marketing fee of 2% of gross revenue, which is allocated to advertising and promotional activities aimed at driving brand visibility and customer acquisition.
What are the financial requirements to become a Regus franchisee?
To become a Regus franchisee, candidates must have a minimum net worth of $1 million and at least $500,000 in liquid capital to support initial investments and operational expenses.
How much can a Regus franchise owner expect to earn?
The average gross sales for a Regus franchise are approximately $0.97 million per location. Assuming a 15% operating profit margin, $0.97 million yearly revenue can result in $146,000 EBITDA annually.
Who owns Regus?
Regus franchise is owned by IWG plc (International Workplace Group), a global leader in flexible workspace solutions.
Disclaimer
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