Bottom line
- Total investment $193K – $2.2M including a $50K franchise fee.
- Average unit revenue of $602K/year (median $581K).
- Rated MODERATE with a risk score of 56/100. SBA loan default rate of 0.0% across 67 loans (below the industry average).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Office Evolution unit return on the cash you put in?
Unlevered ROIC · per unit
7%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Office Evolution units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$843K
on $4.2M purchase
Total debt
$3.4M
SBA $2.1M + senior + seller note
Overview
About
Office Evolution franchisees operate membership-based coworking and office space facilities, managing daily operations including membership sales, facility maintenance, community events, and client account management. Franchisees compete in the flexible workspace market against WeWork, Regus, and local competitors while maintaining recurring membership revenue and ancillary services (conference rooms, virtual offices).
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 25 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Office Evolution presents elevated risk due to undisclosed profitability data, parent company regulatory violations, modest unit growth, and unclear path to ROI across a wide investment range.
Score breakdown · what drove the 56 / 100 rating
- 01MEDNo Item 19 (Average Net Income) disclosed — unable to validate ROI against $193K-$2.1M investment range
- 02HIGHParent company litigation pattern: FTC action against Signarama affiliate for earnings claims, plus multiple state consent orders (Maryland, California) against related brands for regulatory violations
- 03MINORSlow unit growth (7.7% YoY) with only 84 units suggests market saturation or franchisee underperformance in coworking/office space sector
- 04MINORRoyalty floor of $1,500/month ($18K annually) creates high breakeven burden on locations generating below $200K revenue
- 05MINORWide investment range ($193K-$2.1M) indicates inconsistent unit economics and unclear cost structure transparency
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
58 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Office Evolution · FDD (2025) PDF