An in-depth discussion on how to franchise a coworking space. Learn the essential steps of strategy, operations, legalities, and launching a franchise with Jason’s STROLL methodology.
Introduction
Welcome back to another insightful discussion inspired by the latest episode of “This Weekend Coworking” podcast. In this episode, Hector Kolonas sat down with Jason R Anderson, CEO of Vast Coworking Group, to delve into the intricacies of franchising within the coworking industry. Jason shared the fundamentals of franchising, his personal journey, and valuable insights into why coworking spaces might consider franchising as a growth strategy.
Meet Jason Anderson
Jason Anderson, with a unique background blending electrical engineering with real estate expertise, has carved a niche in the world of franchising. His journey from flipping houses to launching franchises highlights his strategic mindset. As an integral part of United Franchise Group and with notable achievements such as developing Transworld Business Advisors, Jason’s insights are backed by extensive industry experience.
Franchising: The Pathway to Expansion
Franchising offers coworking businesses a pathway to expand beyond their current limitations. Jason pointed out that many mom-and-pop coworking operators, despite their success, find it challenging to scale independently due to financial and operational constraints. Franchising provides an opportunity to leverage existing systems, branding, and support structures while expanding the brand through franchisees.
The STROLL Methodology
Jason detailed his proprietary four-step methodology for franchising, aptly named STROLL:
1. Strategy: Analyze the market, competitors, and your business plan to determine the feasibility and potential of franchising your business.
2. Operations: Develop an operational plan for running a franchise, including training, marketing, and ongoing support.
3. Legal: Create comprehensive franchise disclosure documents, compliant with federal and state regulations, often requiring professional legal assistance.
4. Launch: Implement a sales and marketing strategy to attract and support franchisees, setting the stage for franchise success.
Cost and Return on Investment
The investment to become a franchise typically ranges from $30,000 to $100,000. Franchise fees range from $50,000 to $80,000, with a typical royalty of 6-8% of revenue. Jason illustrated how these numbers can lead to a sustainable income stream over time, providing a roadmap for profitability.
Addressing Concerns Over Franchising
While franchising is viewed skeptically by some as a path to commoditizing coworking spaces, Jason argues that franchising often enhances the likelihood of success due to tried-and-tested systems and support. He emphasizes that franchising is inherently more reliable than going it alone, given the structured guidance and backing provided by the franchisor.
Conclusion
Franchising presents a viable growth strategy for coworking spaces looking to expand their reach and impact. By sharing his methodologies and experiences, Jason Anderson offered invaluable advice for those considering this path. For more information, resources, or advice on franchising, Jason invites interested parties to connect via LinkedIn or explore his offerings at franchisingschool.com.
Whether aiming for regional influence or global reach, franchising unlocks a world of potential for those ready to take their coworking brand to the next level.