Bottom line
- Total investment $721K – $1.6M including a $20K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $987K/year (median $937K). Estimated payback in 5.9 years.
- Rated STRONG with a risk score of 52/100.
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 Regus unit return on the cash you put in?
Unlevered ROIC · per unit
12%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Regus units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.6M
on $7.9M purchase
Total debt
$6.3M
SBA $3.9M + senior + seller note
Overview
About
Regus franchisees operate flexible workspace facilities—shared office spaces, meeting rooms, and virtual office services—leasing furnished office suites to small businesses, startups, and remote workers on hourly, daily, or monthly terms. Day-to-day operations involve facility management, client acquisition and retention, space allocation, and administrative services.
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 · 15 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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Regus presents moderate-to-cautionary risk: hypergrowth metrics mask uncertain unit quality, modest profitability relative to capital requirements, and lack of financial disclosure transparency.
Score breakdown · what drove the 52 / 100 rating
- 01MINORExplosive 150% YoY unit growth is unsustainable and suggests potential quality control issues, franchise oversaturation, or aggressive recruitment masking underlying problems
- 02MINORHigh initial investment ($720k-$1.5M) combined with modest net margins (19.4% of revenue) creates significant breakeven timeline and cash flow risk
- 03HIGHNo disclosed litigation is unusual for a 962-unit global franchise; lack of transparency raises questions about hidden disputes or franchisee satisfaction issues
- 04MINORFranchise fee ($20k) appears artificially low relative to investment size, suggesting reliance on ongoing royalties rather than sustainable unit economics
- 05MINORRevenue average of $986.6k varies significantly across 962 units globally; absence of Item 19 financial performance data prevents validation of sustainability claims
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
23 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Regus · FDD (2025) PDF