Regus Franchise Cost, Revenue & Review 2026
- Investment
- $721K – $1.6M
- Disclosed sales
- $987K
- gross sales, not profit
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Regus is a flexible-workspace franchise leasing furnished offices, meeting rooms, and virtual-office services to businesses and remote workers by the hour, day, or month. Franchisees run one or more centers managing space, memberships, and client services.
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]. FranchiseVerdict grade: A (Strongest tier), 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 scored6 of 8 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $721K – $1.6M
- 63rd pct Business Serv…
- Avg gross sales
- $987K
- Company-owned only
- Royalty
- 6.0%
- 9th pct Business Serv…
- Units
- 962
- 64th pct Business Serv…
- SBA charge-off
- N/A
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 $721K – $1.6M including a $20K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $987K/year (median $937K) (company-owned outlets only - not franchisee performance).
- RISKVerdict A (Strongest tier), verdict score 78/100 (higher is better).
- GROWTHPositive: net +6 franchised outlets in the latest year (6 opened, 0 closed) (Item 20).
- FLAGItem 4 discloses a bankruptcy of an officer or of a company an officer ran, not of the franchisor. Review Item 4 for details.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- RGN-USF, LLC
- Parent company
- Franchise International GmbH (FIG)
- FDD Item 1, page 9 of the 2025 FDD
- Ultimate parent
- IWG PLC
- FDD Item 1, page 9 of the 2025 FDD
- CEO title
- Chief Executive Officer, North America
- Jeff Doughman
- Incorporated in
- Delaware
- HQ
- 15305 Dallas Parkway, 12th Floor, Addison, TX 75001
- Auditor
- EisnerAmper LLP
- Audited financials
- Franchisor revenue
- $924K
- vs $843K prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
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
- CEO
- Jeff Doughman
- Headquarters
- TX
- Founded
- 2016
- FDD year
- 2025
- States available
- 6
Can you afford it, and what does the money buy?
Entry cost runs 759% above the typical business services franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown13 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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $721K – $1.6M
- Middle of category vs category
- Liquid capital req'd
- $50K – $75K
- Middle of category vs category
- Franchise fee
- $20K – $20K
- Top 40% of category vs category
- Royalty
- 6.0%
- typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
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 |
What do units actually make?
Average unit sales run 44% above the business services norm.
Company-owned outlets only - not franchisee performance
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 Regus 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
$1.2M
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 Regus 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
Company-owned outlets only - not franchisee performance
- Avg gross sales
- $987K
- Per unit, per year
- Median gross sales
- $937K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- average gross revenue (single franchised outlet)
- Sample size
- 456 outlets
- vs category median 37 · large
- Range (low → high)
- $366K→$2.5MNot cited — published from our reading of the franchisor's disclosure document; the page it is printed on has not been located.
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 9 / 10
- vs category median 3 / 10 · above
Compared against 296 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.
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 $987K/year in gross sales. Revenue-to-investment ratio: 0.9x. Company-owned outlets only - not franchisee performance.
Fee burden
Total ongoing fee load of 8.0% (near the Business Services median).
Disclosure
Transparency score 9/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 150.0% CAGR over 3 years across 962 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 Regus 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
- 962
- Opened
- 6
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- N/A
- Company-owned
- 952
- Corporate units in the system
- % franchised
- 1%
- vs corporate-owned
- Net growth (3-yr)
- +150.0%
- Net unit change over 3 years
- 3-yr CAGR
- +150.0%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 6 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
6
states with franchisees (per FDD Item 12)
Where the owners are · Item 20 owner list
1 current owner across 1 state.
- HI 1
Counts only, from the list the franchisor prints in Item 20. 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.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Office/co-working franchisor with positive net worth ($15.9M) and net income ($76K), audited, Item 19 disclosed, and zero litigation. The disclosed bankruptcy is an OLD (2020) affiliate restructuring (150 Regus entities, plan confirmed 2021) driven by pandemic lease renegotiation — not the franchisor and now resolved.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation required to be disclosed in Item 3.
Bankruptcy (Item 4)
Subject: an officer. An officer’s own bankruptcy or a company an officer ran, not the franchisor’s
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
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: No
- Restricted to system-approved products: No
- Can negotiate own supplier terms: No
Score breakdown · what drove the 78 / 100 verdict
- 01MINOROld, resolved 2020 affiliate Chapter 11 (pandemic lease restructuring), not the franchisor
- 02MINORPositive net worth $15.9M, net income $76K, audited
- 03MEDItem 19 disclosed, no litigation
- 04MINOROnly 10 franchised units (952 company-owned)
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% 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 | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory sizeℹ | Single building or tower/part of building housing the REGUS Office |
| 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 | 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
No litigation required to be disclosed in Item 3.
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
1 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 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. Important context: Company-owned outlets only - not franchisee performance. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Regus?
Regus is franchised by RGN-USF, LLC. Its parent company is Franchise International GmbH (FIG). The ultimate parent named in the FDD is IWG PLC. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Regus 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 Regus FDD and qualifies whose outlets they describe.
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 10 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 verdict score of 78 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.