TL;DR
Office Evolution, a co-working space provider, has been growing rapidly since 2003 and aims to award 55 new territories to local owners by the end of 2018. The company's CEO and Founder, Mark Hemmeter, designed an inclusive space for small business owners, offering various amenities and a competitive franchise model.
The co-working industry has grown rapidly within the past decade, with more than 13,800 locations worldwide and more than 1.1 million people utilizing these spaces. And there are no signs of a slowdown. In fact, the industry is projected to reach 5.1 million members by 2022 according to the Global Coworking Survey.
Since 2003, Office Evolution has been an industry outlier. Rather than seeking tenants that are likely to outgrow their space, the company looks for small, mom and pop operators who are in it for the long haul. That’s why, unlike many of its competitors, Office Evolutions average client remains a member for three years. It’s also a big reason why the brand is on an upward growth trend.
Leading this charge on innovation is Office Evolution CEO and Founder Mark Hemmeter. As someone who started out as a small business owner himself, Hemmeter understood the importance of making retail space affordable for those looking to grow their businesses, but also recognized that there were limited options available.
Company history
“I was a real estate developer working out of my house with three young daughters, and to be honest, it was incredibly difficult to concentrate some days,” said Hemmeter. “I found a small, virtual office company down the street and was a client there for two years, not only because I loved the peace and quiet, but I also loved that they took care of me. They answered phone calls, got my mail and provided a space where I could set up meetings.
I founded Office Evolution with the same idea in mind, I wanted to help small business owners thrive by creating an environment that would allow them to do so.”
As a result, Hemmeter designed an inclusive space for all types of business owners, offering large conference space for those looking to collaborate with other professionals, private rooms for those wanting their own personalized space and semi-private rooms with a lower cost for entrepreneurs getting off the ground. This feeling of inclusion is clear spans across the entire franchise system, from every member of the corporate team to the franchise owners. Helping small business owners accomplish their dreams is a clearly rooted in the culture at Office Evolution.
“Growing up in Hawaii, we had a very unique and beautiful phrase called ‘Ohana’ or ‘family.’ To me, Ohana means that we’re all in this together, working towards one common goal. This translates over into our business philosophy seamlessly because every single person in our system, whether they are a client or a franchisee, wants to be a successful small business owner. They want to work in a place where they can control their own destiny. Because of this, we view our entire organization as one big Ohana.”
Growth strategy
This culture is one of the key reasons Office Evolution has already successfully grown from coast to coast, with more than 50 units open across 25 states. By the end of 2018, Office Evolution aims to award 55 new territories to local owners and open 10 new locations, more than double its existing presence.
In order to achieve that goal, the brand is working closely with existing and new franchise owners to actively expand in large, suburban cities across the U.S. including Chicago, Illinois; Austin, Dallas and Houston, Texas; Boston, Massachusetts; Nashville, Tennessee and Raleigh, North Carolina.
“Unlike our competitors that look for real estate locations in major metropolitan areas, we target suburban areas that are easy for our tenants to access,” said VP of Development Emily Larson. “We know many of our members are commuting and aim to make it as convenient as possible for them. That’s ultimately our goal as a franchise operation, from the common resources we provide like conference rooms, kitchens and office managers to our monthly memberships and pricing options, it’s all about providing the best possible solutions for our members.”
Aside from the value demonstrated to customers, Office Evolution also has one of the most competitive franchise offerings in the industry, with a franchise fee of $57,000 to $58,000 and startup costs ranging from $288,500 to $853,000.
“Our ideal franchise candidate wants to open a location in their community because they are active members who want to help support the growth of the local small business economy. We are passionate about entrepreneurs and want our franchisees to have that same drive.”
In this story
This story was originally published in 1851 Franchise on August 1, 2018. Burnaze summarizes and links to the original reporting.
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