Office Evolution Franchise Cost, Revenue & Review 2026
- Investment
- $193K – $2.2M
- Disclosed sales
- $602K
- gross sales, not profit
- SBA charge-off
- 15.8%
- on 46 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Office Evolution is a franchise providing flexible coworking space, private offices, meeting rooms, and virtual-office services for professionals. Franchisees run a shared-workspace center managing memberships, community, and facilities.
FranchiseVerdict summary · 2026
A Office Evolution franchise requires a total initial investment of $193K – $2.2M, including a $50K franchise fee and an ongoing 7.5% royalty[2]. Per the 2025 FDD, average unit revenue was $602K[2]. SBA 7(a) loans show a 15.8% charge-off rate across 46 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored7 of 8 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $193K – $2.2M
- 54th pct Business Serv…
- Avg gross sales
- $602K
- 8th pct Business Serv…
- Royalty
- 7.5%
- 32nd pct Business Serv…
- Units
- 84
- 44th pct Business Serv…
- SBA charge-off
- 15.8%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Business Services · color = vs category peers
Green = favorable by >10% vs Business Services median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $193K – $2.2M including a $50K franchise fee, 7.5% ongoing royalty.
- RETURNSAverage unit revenue of $602K/year (median $581K).
- RISKVerdict B (Above average), verdict score 50/100 (higher is better). SBA loan charge-off rate of 15.8% across 46 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +6 franchised outlets in the latest year (8 opened, 2 closed); 57 signed but not yet open (Item 20).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- OE Franchising, LLC
- Parent company
- United Franchise Group (affiliation)
- FDD Item 1, page 9 of the 2025 FDD
- Ultimate parent
- Boulder Office Partners, LLC
- FDD Item 1, page 9 of the 2025 FDD
- Predecessor
- OE Franchise, LLC (Colorado)
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Ray Titus
- Incorporated in
- FL
- HQ
- 2121 Vista Parkway, West Palm Beach, FL 33411
- Auditor
- Milbery & Kesselman, CPAs, LLC
- Audited financials
- Franchisor revenue
- $8.2M
- vs $5.2M prior year
Same owner · FDD Item 1, page 9
8 other brands on this site name Boulder Office Partners, LLC as parent or ultimate parent in their own FDD.
- Black Optix TintB
- Cannoli Kitchen PizzaD
- Exit FactorB
- Graze CrazeB
- Intelligent AssistantC
- SignaramaC
- The Great Greek Mediterranean GrillB
- Transworld Business AdvisorsA
Grouped by the owner's name as each filing prints it (this page: the 2025 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- Ray Titus
- Headquarters
- FL
- Founded
- 2022
- FDD year
- 2025
- States available
- 26
Can you afford it, and what does the money buy?
Entry cost runs 792% above the typical business services franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown14 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $50K | $50K | |
| DSS Fee (Design and Site Selection Fee)not refundable | $10K | $20K | |
| Leasehold Improvements/Low Voltage Cabling/Access Control/Sound Masking | $0 | $600K | |
| Designated Furniture, Fixture & Equipment (FF&E)not refundable | $30K | $450K | |
| Site Lease Deposit | $0 | $600K | |
| Pre-Opening Staff, Salaries, Travel and Trainingnot refundable | $5K | $30K | |
| Initial Marketing Launchnot refundable | $45K | $90K | |
| On the Job Trainingnot refundable | $500 | $4K | |
| Grand Opening Eventnot refundable | $5K | $15K | |
| Office and Kitchen Suppliesnot refundable | $1K | $5K | |
| Professional Fees and Other Legal Feesnot refundable | $15K | $60K | |
| Insurance Deposits and Premiumsnot refundable | $2K | $20K | |
| Architectural Servicesnot refundable | $0 | $85K | |
| Additional Funds (0-6 months)not refundable | $30K | $150K | |
| Total initial investment | $193K | $2.2M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $193K – $2.2M
- Middle of category vs category
- Liquid capital req'd
- $30K – $150K
- Middle of category vs category
- Franchise fee
- $50K – $50K
- Top 40% of category vs category
- Royalty
- 7.5%
- Set by a formula · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 10.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.5% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $2K |
| Training fee | $500 |
| Transfer fee | $35K |
| Renewal fee | $3K |
| Total fee load | 10.5% of rev |
What do units actually make?
Average unit sales run 12% below the business services norm.
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Office Evolution until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$1.3M
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Office Evolution unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
- Avg gross sales
- $602K
- Per unit, per year
- Median gross sales
- $581K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- Gross Sales by Square Footage Tier
- Sample size
- 75 outlets
- vs category median 37 · large
- Range (low → high)
- $231K→$1.3MCited, not corroborated — printed on page 64 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 4 / 10
- vs category median 3 / 10 · above
Compared against 296 Business Services brands
Revenue is only 0.5x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $602K/year in gross sales. Revenue-to-investment ratio: 0.5x.
Fee burden
Total ongoing fee load of 10.5% — above the Business Services median of 9.0%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 7.7% CAGR over 3 years across 84 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Business Services medians
How Office Evolution Compares
Category median of published Business Services brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 84
- Opened
- 8
- Last reporting year
- Closed
- 2
- Terminated
- 2
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 2.4%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +7.7%
- Net unit change over 3 years
- 3-yr CAGR
- +7.7%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 2
- Not renewed
- 0
- Transferred
- 3
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 57
- 0.68 per open outlet · Item 20 Table 5
- Projected new
- 16
- Franchisor's next-year forecast
- Transfer rate
- 3.6%
- Owners selling to other franchisees
- Termination rate
- 2.4%
- Franchisor-initiated terminations
- Ceased ops
- 3.6%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 17 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Where the owners are · Item 20 owner list
72 current owners across 17 states.
- CO 14
- FL 11
- TX 9
- VA 8
- CA 7
- AZ 6
- OH 3
- NJ 2
- NY 2
- SC 2
- WI 2
- AR 1
- +5 more states
Counts only, from the list the franchisor prints in Item 20; 2 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 46
- Loan volume
- $21.5M
- Median loan
- $350K
- 50th percentile
- Charge-off rate
- 15.8%
- on 46 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 82.4%
- 5-yr charge-off
- 20.0%
- Loans approved 2021+
- Active lenders
- 21
- Defaults
- 3
- Typical loan rate
- 7.6%
- avg rate to borrowers
- vs industry
- 17.6%
- brand is below its industry ↓
- Jobs supported
- 166
- 0.8 per loan
- Lender concentration
- 30%
- top lender's share
Borrower mix: 89% went to startups / new businesses, 11% to established operators
Top lenders financing Office Evolution franchisees
Showing 3 of 21 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Office Evolution from SBA 7(a) FOIA data.
- Principal loss rate
- 3.2%
- Avg SBA guarantee
- 75%
- Avg interest rate
- 7.59%
- Avg chargeoff amount
- $219K
- Lender concentration
- 29.6%
- Job velocity
- 0.8 per $100K
- NAICS benchmark
- 17.6%
- NAICS 561110
- Jobs supported
- 166
Top SBA lendersTop lender holds 30% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Stearns Bank National Association | 13 | $3.8M | 12.5% |
| 2 | KeyBank National Association | 6 | $3.7M | 0.0% |
| 3 | Wells Fargo Bank National Association | 3 | $1.1M | 0.0% |
| 4 | Byline Bank | 3 | $1.6M | N/A |
| 5 | First Bank | 2 | $3.5M | 0.0% |
| 6 | Simmons Bank | 2 | $636K | 50.0% |
| 7 | Florida Capital Bank, National Association | 1 | $350K | N/A |
| 8 | Cadence Bank | 1 | $340K | 0.0% |
| 9 | Ameris Bank | 1 | $585K | 0.0% |
| 10 | CIBC Bank USA | 1 | $372K | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 7 | 2 | 66.7% |
| FLFlorida | 6 | 0 | -- |
| VAVirginia | 5 | 0 | 0.0% |
| NJNew Jersey | 4 | 0 | 0.0% |
| CACalifornia | 3 | 0 | 0.0% |
| GAGeorgia | 3 | 0 | 0.0% |
| OHOhio | 3 | 0 | 0.0% |
| AZArizona | 2 | 0 | -- |
| INIndiana | 2 | 0 | 0.0% |
| COColorado | 1 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans here charge off near the 16.0% national average.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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.
Why this reads harsher than the B grade: the grade weighs financial health, unit economics, unit growth, scale, legal, and transparency across the whole filing, while this summary lists individual flags without that weighting. The flags are worth checking with current owners; neither is investment advice.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation required to be disclosed for OE Franchising, LLC. Affiliate Signarama subject to FTC injunction (1998) regarding earnings claims. Affiliate TGG subject to California consent order (2021) re: franchise fee collection. TGG/GCZ/UFG subject to California consent order (2022) re: trade show franchise solicitation violations.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Milbery & Kesselman, CPAs, LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
FY2024 Total Income $8,193,840 = Franchise Fees $3,882,169 + Royalties $3,476,842 + Product $546,001 + Management Income $288,633 + Other Income $195. Auditor issued going-concern note: conditions raise substantial doubt about OE Franchising, LLC's ability to continue as a going concern.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 50 / 100 verdict
- 01HIGHParent company litigation pattern: FTC action against Signarama affiliate for earnings claims, plus multiple state consent orders (Maryland, California) against related brands for regulatory violations
- 02MINORSlow unit growth (7.7% YoY) with only 84 units suggests market saturation or franchisee underperformance in coworking/office space sector
- 03MINORRoyalty floor of $1,500/month ($18K annually) creates high breakeven burden on locations generating below $200K revenue
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 10.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 35 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 3 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | West Palm Beach, Florida |
| Jury trial waiver | Yes |
| Governing law | FL |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed for OE Franchising, LLC. Affiliate Signarama subject to FTC injunction (1998) regarding earnings claims. Affiliate TGG subject to California consent order (2021) re: franchise fee collection. TGG/GCZ/UFG subject to California consent order (2022) re: trade show franchise solicitation violations.
Items 10, 11
Training & Operations
- Classroom training
- 63 hrs
- On-the-job training
- 16 hrs
- Training location
- West Palm Beach, FL (virtual and corporate); on-site at local Office Evolution
- Ongoing training
- Required
- Time to open
- 12 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
74 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Office Evolution franchise?
The total investment to open a Office Evolution franchise ranges from $193K – $2.2M, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Office Evolution franchise owners earn?
According to Item 19 of the Office Evolution FDD, the average gross sales per unit is $602K. The median is $581K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Office Evolution?
Office Evolution is franchised by OE Franchising, LLC. Its parent company is United Franchise Group (affiliation). The ultimate parent named in the FDD is Boulder Office Partners, LLC. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Office Evolution FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Office Evolution FDD and qualifies whose outlets they describe.
What is Office Evolution's franchise failure rate?
Based on SBA 7(a) loan data, Office Evolution has a charge-off rate of 15.8% across 46 loans, meaning 15.8% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Office Evolution franchise locations are there?
As of their most recent FDD filing, Office Evolution has 84 total units in the United States, including 84 franchised units and 0 company-owned units. 8 new units were opened in the latest reporting year.
Is Office Evolution a good franchise to buy?
FranchiseVerdict rates Office Evolution as a B-grade franchise with a verdict score of 50 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.