A Flexible Office Franchise Could Provide The High-Growth Solution You’ve Been Looking For

Entrepreneurs, investors, property owners and landlords are all looking for the right opportunities to provide stability following the coronavirus pandemic. One answer presenting itself for many is to embrace franchise opportunities — specifically, flexible office franchise opportunities.

Flexible office space is rapidly emerging as the leading option for franchise investment, research from workspace provider IWG found, eclipsing other, more traditional franchise sectors such as coffee shops or gyms. More than half (56%) of business leaders interested in franchising that the study spoke to said they are either considering becoming a flexible office franchisee or will actively look into it in the next 18 months.

The sector is already proving to be a high-growth industry across the world, particularly since IWG launched its franchise opportunity in 2019. The company signed its first franchise deal in the U.S. in Detroit in February, but already had franchise deals in 38 markets. IWG is attracting new franchise partners at a rapidly increasing rate. In 2021, there’s been a 350% increase in committed locations compared to the same period last year.

“IWG represents a unique franchise opportunity in the flexible space,” IWG Global Franchise Development Director Steve Holloway said. “We have unrivaled network coverage and a portfolio of almost 20 brands offering something for every target audience and hybrid work need. We see franchising as a strong vehicle for growth.”

IWG reported record demand for hybrid work solutions in its interim results for the six months ended June 2021, with the addition of 2 million new customers so far this year. This growth includes increased momentum in its franchising strategy. The company signed 17 new franchise agreements for multiple locations in the period, in countries ranging from Toga to Italy. More recently, in August, IWG signed a joint venture with Hysan Development to operate all IWG brands in Hong Kong and the Greater Bay Area.

To franchisees, the appeal of the model and the opportunity is clear. Holloway said that it provides not just stability, but a way for investors and property owners to capitalize on the growing uptake of flexible office space and move toward remote working that has accelerated due to the pandemic.

“Many have realized the benefits that a hybrid approach to work can offer, from maximizing staff productivity and reducing overheads to having the ability to work closer to home,” Holloway said. “Investors especially are waking up to the fact that flexible office space is not only in demand but a fruitful investment at a time when other sectors have faced huge operational obstacles.” 

For investors keen to get involved in the flexible space market, the franchise model can provide an added safety net. Two-thirds of business leaders spoken to for IWG’s research said that franchising offers the added protection of working with trusted and established brands. 

IWG reported that demand for flexible space is becoming particularly keen in suburban markets. Post-pandemic businesses that might have had one main office building might now be looking at multiple locations for staff, to bolster a hybrid working model. 

“The significant move to hybrid working has created unprecedented demand for our flexible work products,” IWG CEO and founder Mark Dixon said. “This fundamental shift in the way people work is driving demand in particular in suburban locations. Franchise investors have the opportunity to open locations in secondary cities, capitalizing on the growth of the 15-minute city phenomenon with people living and working closer to home.”

IWG’s interim results presented a flavor for what can be expected for the company’s growth throughout 2021. No doubt many investors and property owners are sizing up their portfolios in light of how today’s post-pandemic working patterns might alter business’ real estate strategies. The flexible workspace provider’s franchise offering could provide the opportunity they’re seeking to diversify their portfolio and invest in a market that is projected to grow significantly.

This article was produced in collaboration between IWG and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.