IWG, a flexible workspace provider, recently announced the launch of its franchise program in Canada. The company says by 2030, the flexible workspace industry is estimated to contribute $369 billion US to the Canadian economy, and the number of jobs associated with flexible workspaces is expected to grow by 59 per cent.
In a news release, the company says flexible workspace – also known as coworking – has become a high-growth industry. The term refers to office space, meeting rooms and work areas that can be rented by individual workers or companies for a temporary period of time, from one hour to several years. The industry is estimated to be growing by 24 per cent each year, says IWB. It says real estate firm JLL estimates that up to 30 per cent of corporate real estate could be flexible workspace by 2030.
“Three in 10 buildings on every high street around the world could offer a new franchise opportunity in the coming years,” says Wayne Berger, CEO, IWG Canada and Latin America. “The serviced office market is one of the most exciting growth markets in the world, and the next frontier for franchise operators. We are excited to partner with new franchise operators to bring the many benefits of flexible working to more people and businesses across Canada.”
IWG says that with brands like Regus and Spaces, IWG is the global operator of leading workspace providers with a network of over 3,300 centres in more than 1,100 cities and 120 countries.
“Imagine being given the chance to work with previously successful franchise industries such as restaurants or gyms at the beginning of their growth explosions,” says Steven McAnulty, director of franchise development at IWG Canada. “A similar or even larger opportunity awaits in the serviced office market. It’s a phenomenal opportunity to diversify away from traditional franchise industries and benefit from strong cash returns and significant returns on investment.”
As part of its new franchise program, IWG says it is offering comprehensive infrastructure to support franchisees in Canada throughout the lifecycle of their investment. The company is seeking “qualified franchise partners with organizational and financial capabilities to open a minimum of five locations no smaller than 10,000 square feet over a two-to three-years period,” it says. Franchise partners should have a minimum net worth of $3 million CAD and a minimum of $1 million in liquid assets per location. The initial investment ranges from $750,000 to $1.9 million per location with a $50,000 franchise fee per location.
The company says qualified franchise partners should have proven sales, management and entrepreneurial experience. Franchise partners must also be committed to uphold operational and image standards of IWG brands, it says.
IWG offers a choice of workspaces through its operating companies: Regus, Spaces, HQ, Signature by Regus and No18.
