Q&A with Mark Hemmeter, Office Evolution Founder & CEO

Among national operators in the shared office industry, Office Evolution has a unique business model. First, its target market is small business owners in the white-collar services sector with one to five employees, like small lawyers, accountants, financial planners, insurance brokers, therapists, and so on. Second, Office Evolution develops its locations in the suburbs and secondary markets, not the urban core.

Third, locations are locally owned and operated via the franchise model. Fourth, the culture of Office Evolution also helps it stand out from other brands. From the corporate office staff to its franchise system, Office Evolution is comprised of a group of people working together toward a common goal.

Founder and CEO Mark Hemmeter was born and raised in Honolulu, and its guiding principle of Ohana (or “family”) perfectly describes the brand’s approach to business.

The foundation of Office Evolution in 2003 in Boulder, Colorado.

Hemmeter was a real estate developer working out of his home with three young daughters. Very quickly on, he realized his arrangement wasn’t working. He found a small virtual office company down the street and was a client for two years. He saw firsthand the benefits of such a business provides to a small business owner, like answering the phone, retrieving mail and setting up meetings. In 2003, he quit his job and launched Office Evolution.

What many businesses, both large and small, took away from the recession is the importance of being nimble and the need for flexibility when it comes to office space. The demand for shared office space, with shared amenities and services, was kick-started from the recession.

During the nine years between founding the business and launching the franchise offering, Office Evolution created training programs, operations best practices and technology systems -- and learned a lot along the way. In its 15 years of business, the Office Evolution corporate team has refined its business model and the lessons learned have benefited franchisees nationwide. Since then, the brand has quickly expanded throughout the United States, from Los Angeles to New Jersey.

2018 has already been a huge year for the Office Evolution, and the brand continues to pick up momentum. With plans to open 30-35 new locations in 2018, Office Evolution is set to finish the year at 60 open locations. No other shared office franchise has grown this fast.

Office Evolution plans to award 55 locations in 2018. The average new franchise owner buys 2.5 units, so the goal can be accomplished with 24 deals.

There are four target audiences for Office Evolution:

• Traditional Franchising

• Acquisition -- When OE or a franchisee buys an independent location and simultaneously converts it to an OE

• Conversion – When an existing operator rebrands their independent business to be an Office Evolution franchise

• Landlord – Includes any number of possibilities such as license agreements, management contracts, and leasing opportunities

Co-working is a $2 billion industry, and, according to CBS News, has grown from as little as 70 people in 2007 to 1.5 million worldwide a decade later, and a projected five million by 2023. Office Evolution is the leader in the fast-growing executive office suite, flexible office space and co-working franchise industry, with 50 locations in 25 states.

While other brands sell themselves on free beer and ping-pong tables, Office Evolution focuses on providing a professional and convenient environment for the 40 to 60-year-old small business owner in suburban markets.