By Abdi Ali
Published October 4, 2019
Are you a landlord, private equity company or high net-worth individual based in Africa? Would you like to partner with one of the world’s leading providers of work spaces in your country?
International Workplace Group (IWG) says it is looking for franchise partners on its Regus brand across Africa.
According to IWG that, says it has opened its first franchise centre in Angola and is in the process of opening others in Guinea and Djibouti, says it is ‘seeking committed, driven franchise partners to open IWG centres, including Regus and Spaces, across Africa.’
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But first things first. What product is IWG selling?
The product on sale across Africa is flexible, modern office space and access to services. Flexible working, coworking, flex time or flexitime, IWG says, ‘refers to non-traditional working arrangements that consider an individual’s personal needs and the ability to work when and where they want’ and that ‘Flexible working is often used to describe any working arrangement other than the traditional nine–to-five i.e. working from home or from flexible office space. But it also includes remote workers and freelancers many of whom work from coworking hubs’.
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So what is special about this work arrangement?
Flexible working in Africa, IWG says, has not only received an injection in the past few years due to local and international investment in the tech and innovation start-up space, but that it is a fast-growing sector.
Mo Nanabhay, Franchise Development Director of IWG Africa, says research–that shows that the flexible workspace sector has shown 23% average annual growth since 2013–shows that half of all all workers will be remote most of the time by 2020.
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“To meet the growing demand, we are looking to rapidly expand our network through franchising while making an unprecedented investment opportunity available,” Nanabhay says.
Regus’s range of office formats, as well as its growing mobile, virtual office and workplace recovery businesses, IWG says, enable people and businesses to work where they want, when they want, how they want and at a range of price points.
Along with its strong economic growth, low employment costs and proven staying power, Regus brings a range of revenue streams for landlords to combat burgeoning vacancy rates. These include monthly membership programmes – with a retention rate of around 70% – and commission for selling other Regus locations.
“And it seems that now is the time to claim a slice of the flex space sector, as it sits on the cusp of exponential growth. Today, it accounts for less than 5% of office inventory but, according to commercial real estate firm JLL, this will rocket to 30% by 2030. By the same year, flexible working will contribute more than US$10trn to the global economy,” IWG says a study it has conducted shows.
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To meet its progressive plans for expansion, IWG says, Regus is seeking local African multi-brand franchise operators, landlords, private equity firms and high net-worth individuals as partners.
So what is expected of potential franchise partners?
“Franchise partners would expect to follow a development plan and open an agreed number of centres over a 5-year period,” IWG says. “Centres are generally between 700m2 to 1200m2 in size. Partners would also be required to fund the capex to fit out these centres over a few years and be responsible for the initial franchise fees.”
Additionally, IWG says “Franchisees should also have at least three years’ sales management and customer service experience and two years’ worth of expertise in community marketing, working with a sales team of at least five people. A commitment to upholding Regus’s high operational and reputational standards is also a must.”
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Besides providing franchises with access to marketing, sales and IT support and leading platforms throughout the process, IWG says Regus will work closely with franchisees to find and design flexible office spaces.
“The addition of effective, easy-to-use, professional workspaces is expected to boost the tech innovation, start-up and entrepreneurial growth in Africa and a slow-down is nowhere in sight,” IWG says in a statement.
Detailed information on franchise partnership is available on the franchise.iwgplc.com website.