You just read an ad about an office franchise opportunity on the news. The announcement was interesting. The coworking concept alone tickled your curiosity. Then you fed your thoughts, reading through countless articles about coworking. And now, you decided to purchase one. Your experience toward that decision was probably a kick of that entrepreneurial spirit inside of you. Yes, you might be a born-businessman. But knowing what to do next is crucial.
1. The Takeaway
Coworking spaces are unique. You can enjoy a collaborative and flexible style of doing work. Owning a franchise of this kind is also novel in itself. You will have to offer a service that aims to help people produce another type of service. However, the franchise benefits are the same. The most significant advantage of a coworking franchise is utilizing a business model that works.
Along with it is the value of the brand and advertising prowess. Second, the risk of failing the business is small since the brand is already workable. Customers are aware of it. Third, product and operation systems are standardized. This allows you to manage the business as other franchises would uniformly. Last is the ongoing guidance and development effort from the owner. From training to research, you will get the best business assistance.
2. The Costs
With a coworking franchise, you also have to deal with associated costs. First, the value of the capital investment can be different from most franchises as office space is a real estate that comes with sticky or expensive prices. Also, the cost of the investment will be a function of the profitability of the business. The more successful it is, the more money you have to shell out.
Second, there is a string of costs to consider when franchising. You have facility costs, equipment costs, working capital, and advertising fees. The cost of the facility is high with a coworking franchise since you need extensive real estate. Other expenses come with the package. The given values must be considered with deep intent before buying a franchise. The benefits might be obvious, but sometimes the associated costs can be too much for some new business owners.
3. The Laws
Covering everything is the FTC’s Franchise Rule. As a buyer, you must be adept with the rule as it dictates the necessary provisions of buying and owning a franchise as well as the obligations of the franchisor and the franchisee. Before buying, a full disclosure Document or FDD about the franchise deal should be provided by the franchisor. You will be given ten days to review it.
Other pertinent laws include existing state regulations that cover franchises. The FTC does not require any franchisor to register in a national agency, but states do allow such registrations. States follow the FDD guidelines to ensure that a buyer is protected from the potential failure of the business.
A coworking office franchise does offer a one of a kind opportunity to a new entrepreneur. One gets to manage an increasingly popular service with the additional benefits that franchisees derive from owning a successful franchise. Before buying a coworking office franchise, consider the costs and laws apart from the profits.