Freelancers are expected to make up at least 50 percent of the workforce by 2027. With the rapid shift underway, the coworking space industry is growing exponentially to accommodate the needs of modern workers. Entrepreneurs, real estate investors and hoteliers alike recognize coworking as a lucrative business venture.
However, because the shared workspace industry is relatively new and quickly evolving, it can be difficult to go it alone. Opening a shared workspace through franchising offers proven systems and structures to help you successfully run your business.
Venture X franchises are a completely turnkey franchise opportunity. From operational support to the state-of-the-art IT infrastructure and support that powers your business, our experts make it easier to enter the thriving coworking industry with your own shared workspace.
So, how much does it cost to open a coworking space franchise?
Costs vary depending on the size of your new business, the market conditions of its location and other factors. But here’s what franchisees can typically expect:
Minimum Net Worth and Liquid Capital
Usually, franchisees with a minimum net worth of $1.5 million are best equipped to nurture their new business during its early months. At Venture X, we recommend franchisees have at least $500,000 in working capital when collaborating with one of our financing partners. This ensures our franchisees are prepared for both the initial investment as well as the ongoing costs of a shared workspace while they build their business. We work with a number of preferred banks that typically provide approvals within a few days, or you may also choose to work with your own bank.
Total Initial Investment
The total initial investment for Venture X coworking franchises ranges from $1.1 million-$3.4 million. These initial expenses consist of a variety of costs and fees, including:
- Franchise Fee: This fee covers costs associated with our best-in-class training and onboarding, including flights, hotel and lodging for the franchise owner during our two-week in-house training. It also covers flights, hotel and lodging for our three weeks of field training on the job at your location. Additionally, it includes the website, use of the Venture X name and logo, groundbreaking press release, vendor discounts, reciprocity for your members to access any other Venture X location and more. The franchise fee for Venture X is $79,500, which is paid at the signing of the franchise agreement.
- Real estate: Rental payments vary from location to location, but a typical new coworking space will occupy a minimum of 10,000 square feet of interior space with HVAC, lighting fixtures, electrical outlets and telephone wiring installed. The cost per square foot of leasing commercial space fluctuates depending on your location and the market conditions affecting commercial property in your area.
- Space build out: Venture X franchisees are responsible for paying the cost of building out the premises for their coworking space. The actual cost of constructing or remodeling and preparing your location will depend on a number of variables, including the condition of the space, the square footage and the construction costs prevailing in the area where your space is located.
- Equipment and Supplies Package: Our members are drawn to our premium design, unique look and inspiring office space. This fee covers the cost of high-end furniture, fixtures and other equipment necessary to outfit the optimal coworking space.
- Design and Project Management (DPM) Fee: This fee includes assistance and preliminary review for up to four sites to help you select the perfect spot for your Venture X location as well as assistance on construction. In addition, our franchise real estate team provides a more detailed review for up to two sites. The final amount for this fee will depend on the condition of the space, renovations needed, the experience you have and the services you select.
While not an exhaustive list, these are the main expenses franchisees can expect to pay in the initial investment for their coworking space franchise.
Beyond the initial investment, operating costs for shared workspaces are simple – rent, utilities, maintenance and a small staff of three or four employees. And due to the swelling demand for coworking spaces, the opportunities for profit are endless, with multiple revenue streams such as rent, event hosting and business add-ons like mailbox services or 24/7 building access.