RegusFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Regus franchise requires a total initial investment of $721K – $1.6M, including a $20K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $987K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $721K – $1.6M
- 53rd pct Business Serv…
- Avg gross sales
- $987K
- 18th pct Business Serv…
- Royalty
- 6.0%
- 9th pct Business Serv…
- Units
- 962
- 53rd pct Business Serv…
- SBA default
- N/A
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
The system grew 150% year-over-year. Fast growth means demand, but can strain support.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
17% cash-on-cash return (based on P&L Bottom Line). Within the 15-30% range most franchise investors consider acceptable.
Bottom line
- Total investment $721K – $1.6M including a $20K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $987K/year (median $937K), with an estimated 17% cash-on-cash return (based on P&L Bottom Line).
- Verdict A (Top Quintile) with a risk score of 49/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- RGN-USF, LLC
- Parent company
- Franchise International GmbH
- Ultimate parent
- IWG PLC
- Incorporated in
- DE
- HQ
- 15305 Dallas Parkway, 12th Floor, Addison, TX 75001
- Auditor
- EisnerAmper LLP
- Audited financials
- Franchisor revenue
- $843K
- vs $924K prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Affiliated brands
- Pathway IP II GmbH
- Regus Group Services
- Regus
- PIPS
- Regus Management Group
Other brands the franchisor or its parent operates (Item 1).
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.
- CEO
- Jeff Doughman
- Headquarters
- TX
- Founded
- 2016
- FDD year
- 2025
- States available
- 6
FDD Item 7 · 2025 filing · 13 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchisee Feenot refundable | $20K | $20K | |
| Signagenot refundable | $8K | $35K | |
| Office Equipment, Supplies & Misc.not refundable | $5K | $8K | |
| Hardware and Softwarenot refundable | $45K | $53K | |
| Lease Payments – 3 Monthsnot refundable | $50K | $215K | |
| Real Estate and Improvementsnot refundable | $380K | $900K | |
| Furniture, Fixtures and Equipmentnot refundable | $150K | $225K | |
| Insurancenot refundable | $2K | $6K | |
| Utility Deposits - Telephone, Internet, Other Technologynot refundable | $2K | $3K | |
| Business Licenses & Permitsnot refundable | $500 | $3K | |
| Professional Feesnot refundable | $3K | $10K | |
| Grand Opening Advertisingnot refundable | $5K | $10K | |
| Additional Funds/Working Capitalnot refundable | $50K | $75K | |
| Total initial investment | $721K | $1.6M |
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
$148K
15.0% margin
Unlevered ROIC
12%
EBITDA / total invested capital
Payback
8.1 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $721K – $1.6M
- Near category avg vs category
- Liquid capital req'd
- $50K – $75K
- Near category avg vs category
- Franchise fee
- $20K – $20K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Revenue · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
- Payback period
- 5.9 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Transfer fee | $10K |
| Renewal fee | $3K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $987K
- Per unit, per year
- Median gross sales
- $937K
- Avg p&l bottom line
- $192K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 16.8%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- gross_sales
- Sample size
- 456 units
- vs category median 32 · large
- Range (low → high)
- $366K→$2.5M
- Cohort dispersion (min → max)
- Transparency tier
- revenue_only
- Categorical assessment of disclosure depth
- Transparency
- 10 / 5
- vs category median 3 / 5 · above
Compared against 360 Business Services brands
Revenue is only 0.9x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Business Services averages
How Regus Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 962
- Opened
- 6
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 952
- Corporate units in the system
- % franchised
- 1%
- vs corporate-owned
- Net growth (yr3)
- +150.0%
- Net unit change last year
- 3-yr CAGR
- +150.0%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 1
- Franchisor bought back
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 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.
No SBA loan data available for this brand.
Risk analysis
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.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $20,000
Bankruptcy (Item 4)
Disclosed in last 7 years
Bankruptcy Code (or equivalent restructuring proceedings in Canada under the Companies’ Creditors Arrangement Act) to facilitate negotiation of lease obligations to landlords and lenders. Exhibit J, attached to this Disclosure Document, displays these bankruptcy actions, including: the debtor’s name
Audited financials (Item 21)
Yes · EisnerAmper LLP⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 49 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Building |
| 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 | 50 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 60 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | New Castle County, Delaware |
| Jury trial waiver | Yes |
| Governing law | Delaware |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 240 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Site selection
- franchisor
- Franchisor financing
- Offered
- Item 10
- POS system
- Titan
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Titan
Item 20 · call current owners
Franchisee Contacts
23 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Regus · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Regus franchise?
The total investment to open a Regus franchise ranges from $721K – $1.6M, with an initial franchise fee of $20K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Regus franchise owners earn?
According to Item 19 of the Regus FDD, the average gross sales per unit is $987K. The median is $937K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Regus's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Regus (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Regus franchise locations are there?
As of their most recent FDD filing, Regus has 962 total units in the United States, including 4 franchised units and 952 company-owned units. 6 new units were opened in the latest reporting year.
Is Regus a good franchise to buy?
FranchiseVerdict rates Regus as a A-grade franchise with a risk score of 49 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 Regus, 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.