FRANCHISE·WATCH·DESK

Verified — real FDD extraction

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REGUS OFFICE

Business Services · independent · est. —

Regus Office is the same flexible workspace brand as Regus, offering rentable private offices, coworking space, and meeting rooms on flexible terms. Businesses use it for turnkey office space without committing to a traditional lease. A franchisee runs a workspace center, handling leasing, front-desk service, and building operations.

REGUS OFFICE net unit count grew +1.7% from 20212023 per its FDD Item 20.

New to franchising? Start here

A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.

Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:

  • Franchise fee — the one-time cost to buy in.
  • Royalty — the ongoing cut of your sales you pay the franchisor.
  • Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).

The verdict

Too new to judge

Distress

0
STABLE

4 franchised units over 3 disclosed years is not a track record — systems this early have realized only a fraction of their eventual failures. Judge the disclosures, not a verdict.

Exit rate · latest year

0.0%

vs 8.1% across 28 business services systems

Cost to open

$721K–$1.6M

Item 7 total investment range

SBA loan defaults

No loan record

no SBA 7(a)/504 loans found for this brand

Behind the verdict

the record, factor by factor · Item 20

hi-1.0.0
Net unit growth35%

3-yr trend · Item 20 Table 1

Fair
Exit quality25%

terminations + ceased-ops vs. all exits · Table 3

Strong
Transfer / churn15%

transfers vs. base · Table 3

Fair
Promise-keeping10%

actual vs. projected openings · Table 5

Not Disc.
Transparency15%

Item 19 disclosure + completeness

Strong

Systemwide units

2021–2023

+1.7%
783202176620227962023

Survival record

FDD Item 20 · outlet status by year

In fiscal 2023, 0 of 4 franchised outlets left the system — a 0.0% annualized exit rate, vs 8.1% across 28 business services systems. Not every exit is a failure — but this is the measurable floor.

Show the outlet tables
Status (FTC)202120222023
Outlets at start801783766
Opened121
Transfers001
Terminations000
Non-renewals000
Reacquired by franchisor001
Ceased — other reasons000
Outlets at end783766796
Net change-18-17+30

What it costs — and what it drags

FDD Items 5–7 · fees, investment, royalty

Buying in means a $20K franchise fee (Item 5) and a total investment of $721K–$1.6M (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.

To open (Item 7)

$721K–$1.6M

all-in investment range

Franchise fee (Item 5)

$20K

upfront, one-time

Royalty (Item 6)

6%

of sales, ongoing

If a unit does this in annual sales…$1M/yr

Your figure — cross-check against this brand's Item 19 and current-owner validation.

Royalty you'd pay / yr

$60K

6% of sales, before profit

Over a 10-yr term

$600K

royalties alone, excl. ad fund

This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.

Build a real pro-forma for REGUS OFFICE with an independent CPA

Distress signals

news-sourced · bankruptcies, closures, lawsuits

No recent closures, bankruptcies, or major lawsuits found in the news for REGUS OFFICE. That's a good sign — but it reflects news coverage, not a guarantee.

Before you sign anythingfree · 30 min · no commission

A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing REGUS OFFICE's numbers, including talking you out of a bad deal.

Talk to an independent CPA before you buy →

REGUS OFFICE franchise questions, answered from the filings

What percentage of REGUS OFFICE franchises closed last year?

In REGUS OFFICE's latest FDD Item 20 (fiscal 2023), 0 of 4 franchised outlets left the system — an annualized exit rate of 0.0% — compared with 8.1% across 28 business services systems tracked here. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.

How much does a REGUS OFFICE franchise cost?

Per REGUS OFFICE's 2024 FDD, buying in requires an initial franchise fee of $20K (Item 5) and a total initial investment of $721K–$1.6M (Item 7).

What royalty does REGUS OFFICE charge?

REGUS OFFICE charges an ongoing royalty of 6.0% of gross sales, per Item 6 of its 2024 FDD.

Does REGUS OFFICE disclose earnings (Item 19)?

Yes — REGUS OFFICE makes a financial performance representation in Item 19 of its 2024 FDD. Read it closely: franchisors choose which units and which metrics to include.

Is REGUS OFFICE a good franchise to buy? Health score, exit rate & costs (2026) · Franchise Watch Desk