Low Cost Franchises: How much is an Office Evolution Franchise?
Office Evolution is one of the low cost franchises available on the market
The estimated Office Evolution startup cost is $197,000 to $399,000 (plus Landlord Driven Expenses)
Office Evolution is one of the low cost franchises available on the market. Your investment in starting an Office Evolution business center will vary due to a variety of local market factors. We’ve listed some of the most noteworthy factors below. When considering a low cost franchise, these are the key factors you should be looking at. This will give you a better idea of what may impact your startup investment:
- Local market conditions: When there are a lot of vacancies, you’ll have your pick of properties. In markets where vacancies are low, we’ll help you get a little more creative.
- Specific property you plan to lease for your business center: you will have options. However, gravitating to a Class “A” space on the top floor will impact your investment. Not to worry…we’ll guide you through the process of choosing the right space, so you’ll make the best decision for you.
- Size of your business center: Larger business centers typically require a larger investment. We’ve found the sweetspot to be between 5,000 – 8,000 square foot. This keeps your investment low while giving you a great return.
- Terms you are able to negotiate with a commercial landlord. We’re here to help in the negotiations.
Office Evolution works with you during the lease negotiations. We’ve developed several nationwide partnerships and tools to assist in the negotiation process. Additionally, we’re on your side and advocate on your behalf. Typically, after your lease is negotiated, our franchisees also find themselves enjoying several months of “Free Rent”. Fairly commonplace in the industry, “free rent” is a period of time where the leaseholder doesn’t pay rent. As one of the low cost franchises available on the market, the free rent period will conserve cash while your business is building momentum.
See the Numbers
The draw of a low cost franchise is very clear, but without evidence, you can’t ensure all of your financial expectations will be met. The chart below, taken from our 2017 Franchise Disclosure Document, shows estimated startup costs for a 5,000 – 8,000 square foot business center.
|Type of Expenditure||Low||High||Method of Payment||When Due||To Whom Payment is to be Paid|
|TOTAL ESTIMATED INITIAL INVESTMENT (16)||217000||749000|
|Franchise Fee (1)||35000||35000||Lump Sum||When you sign the Franchise Agreement||Us|
|LADPM Fee (2)||15000||15000||As Agreed||As Agreed||Us|
|Furniture & Art (3)||65000||120000||As Arranged||As Arranged||Third Parties|
|Technology Equipment and Installation (4)||15000||40000||As Agreed||Before Opening||Third Parties|
|Other Office Equipment (5)||5000||10000||As Incurred||As Incurred||Third Parties|
|Signage (6)||2500||15000||As Required||Before Opening||Third Parties|
|Pre-Opening Staff and Recruiting (7)||8000||10000||As Required||Before Opening||Third Parties|
|Opening Marketing Campaigns (8)||25000||25000||As Agreed||Before Opening||Third Parties|
|Opening Supplies (9)||1500||2000||As Incurred||As Incurred||Third Parties|
|Legal and Professional Fees (10)||2500||10000||As Agreed||Before Opening||Your Attorneys, CPA’s, and Other Professionals|
|Business Licenses and Permits (11)||0||5000||As Arranged||As Incurred||Government Agencies|
|Initial Training Travel Expenses (12)||1500||8000||As Incurred||As Incurred||Providers of Travel, Lodging, and Food Services|
|Insurance (13)||1000||4000||As Arranged||As Arranged||Insurance Company|
|Additional Funds (6-months) (14)||20000||100000||As Agreed||As Incurred||Third Parties|
(does not include Landlord Driven Expenses)
|Landlord Driven Expenses|
(Additional Lease & BuildOt Related Funds (15)
|20000||350000||As Agreed||Before Opening||Landlord, Third Parties|
You’ll find more details and information about the items listed in the startup costs included in Office Evolution’s Franchise Disclosure Document. As part of our process, you will receive a copy of the FDD. You can use the FDD to evaluate us, while we evaluate you – it’s important to make sure we are a good fit for you and vice versa. Start your investigation today. Complete the form above, download our free executive summary, and begin learning about Office Evolution – one of the most coveted low cost franchises available.