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One of the Most Profitable Franchise B2B Models Available

Take a closer look at the financial performance of Office Evolution Business Centers

One of the most profitable franchise B2B models available

Yes, you want to have fun running and owning a business.  You also want to make money.  Office Evolution is one of the most profitable franchise options out there in the B2B space, and we have the numbers to prove it.  Rather than simply telling you, we want to show you.

Office Evolution offers franchisees a way to generate residual income with a business that requires one employee per location. We started operations in 2003 and began franchising in 2012. The first financial performance table listed shows financial data from 2012 to 2015.  This table highlights four of our corporate locations that fit the current business model offered to franchisees.  While we also opened several franchise locations during this time, they had not generated enough data to provide a meaningful baseline.

These four “Core Model” locations are between 5,000 and 8,000 square feet and also match the site selection criteria recommended to franchisees. The Office Evolution locations included are:

  • Boulder,
  • Denver Downtown,
  • Golden, and
  • Greenwood Village (Denver Tech Center).

The tables below reflect the average Net Operating Income and the locations with the highest and lowest Net Operating Income, so you can plainly see the Office Evolution difference.

Affiliate Core Model Group – Annual Average Revenue and Expenses

Net Operating Income After
Franchise Adjustments
Gross Revenue
Office Memberships$165,308$171,267$192,490$203,515$183,145
Virtual Office Memberships$126,495$136,422$140,975$150,387$138,570
Guest Conference Room Usage$12,047$17,138$15,799$13,354$14,585
Other & Misc.$45,149$39,965$42,169$59,192$46,619
Promotions & Discounts($2,565)($3,686)($3,631)($2,290)($3,043)
Total Gross Revenue$346,435$361,106$387,802$424,159$379,876
Operating Expenses
Payroll & Benefits$42,430$44,192$52,410$45,349$46,095
Rent & Facilities$129,857$116,515$158,161$163,795$142,082
Sales & Marketing$5,021$4,016$6,852$4,456$5,086
Network & Systems$11,123$9,011$9,617$6,763$9,129
Location Operations$6,134$6,600$9,359$8,525$7,654
General & Admin$1,994$2,874$2,334$2,575$2,444
Total Operating Expenses$196,560$183,208$238,733$231,462$212,491
Franchise Related Adjustments*
Brand Development Fund
Adjusted Technology Licenses$1,188$1,188$3,588n/a$1,491
Call Center Allocations$14,723$15,347$16,482n/a$11,638
Setup Fees$3,000$3,000$3,000n/a$2,250
Cost of Salesn/an/an/a$36,086$9,021

*The Franchise Related Adjustments listed above present financial projections of franchisee expenses had they been operating the four Core Model locations.

Average revenue for franchisees

These numbers represent the five franchisee-owned locations open for at least one full year as of December 31, 2015.

2015 Financial Information for Franchisee Group 
Average Gross Revenue$235,817
Average Office Revenue$176,203
Average Virtual Revenue$32,269
Average Guest Revenue$5,440
Average Other & Misc. Revenue$30,162
Average Promotions & Discounts($8,256)

So it’s easy to see why our model is the answer to your franchise questions. You can also find more details about financial performance in Office Evolution’s Franchise Disclosure Document, which you will receive during the mutual evaluation process. Most of all, this process is meant for both you and Office Evolution to assess if it’s a good match. To get started, simply complete the inquiry form and we will be in touch within one business day. Or, if you just can’t wait, call 877-475-6300.

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