Office EvolutionFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Office Evolution franchise requires a total initial investment of $193K – $2.2M, including a $50K franchise fee. 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]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $193K – $2.2M
- 46th pct Business Serv…
- Avg gross sales
- $602K
- 13th pct Business Serv…
- Royalty
- N/A
- Units
- 84
- 38th pct Business Serv…
- SBA default
- 15.8%
- system-wide median varies by category
Quick verdict · Business Services · color = vs category peers
Green = >15% above Business Services avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
At 0.5x revenue per dollar invested, this system underperforms the typical 1.5-2.5x range.
Franchised units fell from 84 to 78 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $193K – $2.2M including a $50K franchise fee.
- Average unit revenue of $602K/year (median $581K).
- Verdict B (Above Average) with a risk score of 55/100. SBA loan charge-off rate of 15.8% across 46 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- OE Franchising, LLC
- Parent company
- United Franchise Group
- Ultimate parent
- Boulder Office Partners, LLC
- Incorporated in
- FL
- HQ
- 2121 Vista Parkway, West Palm Beach, FL 33411
- Auditor
- Milbery & Kesselman, CPAs, LLC
- Audited financials
- Franchisor revenue
- $3.5M
- vs $5.2M prior year
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).
- CEO
- Ray Titus
- Headquarters
- FL
- Founded
- 2022
- FDD year
- 2025
- States available
- 26
FDD Item 7 · 2025 filing · 14 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.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$84K
14.0% margin
Unlevered ROIC
7%
EBITDA / total invested capital
Payback
15.1 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $193K – $2.2M
- Near category avg vs category
- Liquid capital req'd
- $30K – $150K
- Better than avg vs category
- Franchise fee
- $35K – $50K
- Better than avg vs category
- Royalty
- The greater of 7.5% of Gross Revenues or $1,500
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 10.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | greater of 7.5% of Gross Revenues or $1,500 |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $2K |
| Transfer fee | $35K |
| Renewal fee | $3K |
| Total fee load | 10.5% of rev |
Financial Performance
- Avg gross sales
- $602K
- Per unit, per year
- Median gross sales
- $581K
- Item 19 type
- gross_sales
- Sample size
- 75 units
- vs category median 32 · large
- Range (low → high)
- $231K→$1.3M
- Cohort dispersion (min → max)
- Transparency
- 4 / 5
- vs category median 3 / 5 · above
Compared against 360 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.
vs Business Services averages
How Office Evolution Compares
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 (yr3)
- +7.7%
- Net unit change last year
- 3-yr CAGR
- +7.7%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 3
- 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 · 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 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.
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%
- 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
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Office Evolution's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 12-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
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.
Litigation (Item 3)
Three government enforcement actions settled: (1) FTC v. Minuteman Press International/Speedy Sign-A-Rama/Titus/Haber (1993, injunction filed 1998) - false earnings claims, undisclosed transfer fees, franchise rule violations; (2) Maryland Securities Commissioner v. Signarama (1996) - unregistered franchise sales; (3) California Department of Financial Protection and Innovation v. TGG (2021) - improper collection of initial franchise fees before pre-opening obligations completed; (4) California Department of Financial Protection and Innovation v. TGG, GCZ, UFG (2022) - alleged trade show violations (text cut off).
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Milbery & Kesselman, CPAs, LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- 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 55 / 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
| Initial term | 35 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 3 |
| Territory type | Radius |
| Protected territory | Yes |
| Online sales rights | 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 |
| Mandatory arbitration | Yes |
| Arbitration location | West Palm Beach, Florida |
| Jury trial waiver | Yes |
| Governing law | Florida |
| Litigation count | 3 |
View Item 3 litigation summary
Three government enforcement actions settled: (1) FTC v. Minuteman Press International/Speedy Sign-A-Rama/Titus/Haber (1993, injunction filed 1998) - false earnings claims, undisclosed transfer fees, franchise rule violations; (2) Maryland Securities Commissioner v. Signarama (1996) - unregistered franchise sales; (3) California Department of Financial Protection and Innovation v. TGG (2021) - improper collection of initial franchise fees before pre-opening obligations completed; (4) California Department of Financial Protection and Innovation v. TGG, GCZ, UFG (2022) - alleged trade show violations (text cut off).
Items 10, 11
Training & Operations
- Classroom training
- 31 hrs
- On-the-job training
- 72 hrs
- Training location
- Franchisor location and on-site at franchisee's restaurant
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
58 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Office Evolution · FDD (2025) PDF
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.
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 risk score of 55 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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
Are you the franchisor?
If you represent Office Evolution, you can request corrections or provide updated information.
Claim this brandOther Business Services franchises
Compare similar franchise opportunities in the Business Services category
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.