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The Franchise Model Gains Traction In The Flexible Workspace Industry

Cecilia Amador de San JosébyCecilia Amador de San José
November 30, 2018
in Business
Reading Time: 2 mins read
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office evolution

"Another Kind of Working Space". Office Evolution was featured in the December 2018 Issue of Entrepreneur Magazine

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  • Entrepreneur Magazine featured flexible workspace operator, Office Evolution, in its December 2018 issue.
  • The flexible workspace operator has been ranked in the magazine’s annual Franchise 500 list for two consecutive years.
  • The franchise model has proven to be a successful strategy for flexible workspace operators to grow their footprint.

Entrepreneur’s December 2018 issue features the story of flexible workspace operator, Office Evolution in its Franchise/Franchisor section. Office Evolution is one of the fastest growing flexible workspace operators in the US and it’s been ranked in Entrepreneur’s annual Franchise 500 list for two years in a row.

The franchise model has proven to be successful in the flexible workspace industry. Serendipity Labs, Office Evolution, Venture X, and International Workplace Group are all using franchising as a growth strategy. In an industry that greatly relies on hospitality and community, the franchise model works as it provides each workspace location with a strong, authentic local feel.

Speaking to Entrepreneur Magazine Mark Hemmeter, CEO of Office Evolution, said that “it’s important to have that local connection, and we couldn’t replicate it with corporate stores. Our franchisees are not seen as foreign entities coming into town when they open up a location. They’re seen as members of the community, friends who’ve been part of that community forever.”

This local connection is what makes it easier for Office Evolution franchisees to fill up the locations. The same goes for other operators franchising their locations. Speaking to Allwork.Space last year, David Diamond, co-founder of Venture X, stated that “when you open (a location) with people who already have a strong presence in the area, have a connection to the community and are familiar with the market, it adds to the success of the brand and model.”

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Financially speaking, the franchise model makes sense, as it allows operators to grow their footprint with less capital expenditure from their part.

Still, there are challenges associated with running a franchise business; take for example the case of International Workplace Group (IWG/Regus). Operators need to be careful in their selection process and they need to have a tight operation in order to make sure that quality is maintained across all locations, even if they have different owners.

Office Evolution has grown exponentially since 2013, when it launched the franchise model. In June of this year the company announced the opening of its 50th location and its expects to grow to 125 locations by the end of 2019.

 

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Cecilia Amador de San José

Cecilia Amador de San José

Cecilia Amador de San José, Senior Associate Editor of Allwork.Space, is based from wherever her laptop is. She enjoys traveling and visiting new flexible workspaces.

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