REGUS OFFICE

Item 7 lays out a hefty initial investment of $720,500 to $1,562,500 for leasing 10,000-20,000 sq ft in high-demand metro spots, converting them into co-working hubs with private offices, meeting rooms, and admin perks. That $20,000 franchise fee gets you the Regus brand under IWG PLC, but ongoing bites include 6% royalty plus another 6% infrastructure support and 2% marketing fund—totaling 14% of sales flowing upstream. Item 19 shines with average gross revenues of $677,000 across locations, a solid figure for a service play targeting SMBs and enterprises, though profitability hinges on high occupancy in those pricey urban leases.

Growth exploded 150% from 4 franchised units in 2023 to 10 in 2024, signaling strong momentum since franchising kicked off in 2018 from Addison, TX HQ—yet dwarfed by 952 corporate locations worldwide. The bankruptcy history flagged in the FDD warrants scrutiny, potentially tied to parent IWG's past restructurings, but no recent terminations or transfers suggest stability. For buyers eyeing $700K+ outlays, these revenues imply decent ROI potential if you nail membership sales, but validate local demand against that lease burden before jumping in.