IWG Seals First Franchise Deal in Australia
The flexible workspace provider teams up with its first franchise partner to expand its footprint in Queensland
LUXEMBOURG, Sept. 24, 2020 /PRNewswire/ -- IWG, the world's leader of flexible workspaces and coworking, has signed its first franchise deal in Australia, in partnership with the Adams Group. The deal will see IWG expand throughout Northern Queensland adding 10 centres under the Regus brand.
The partnership will extend IWG's footprint into areas where demand for flexible office space among local businesses and entrepreneurs is increasing. The centres will be located in the Sunshine Coast, Townsville, Cairns, Noosa, Mackay, Rockhampton, Gladstone, Bundaberg, Hervey Bay and Airlie Beach.
The Adams Group are already the owners of one of the most successful franchise operations in Australia: Nightowl Convenience, which has 75 locations nationally and plans to grow to 100 by 2022.
Adam Adams, CEO of the Adams Group said: "The appetite for flexible and coworking spaces was booming in Australia pre COVID and the pandemic has only increased demand. There is a clear gap in the market for a high-quality product in Queensland and our goal is to partner with Regus, the global leader, with a strong brand, professional infrastructure and worldwide network to fulfil this need."
"The franchise concept offers our partners the unique opportunity to make an attractive, high-yield investment with the know-how of the market leader and their local expertise. With a strong entrepreneurial spirit and a proven track record in the franchise space, the Adams Group is an ideal partner to grow the Regus brand in Queensland", said Mark Bhardwaj, IWG's Head of Partnership Growth in Australia and New Zealand.
"We are actively looking for franchise partners to capitalise on the growing demand in the flexible workspace industry outside the core CBD areas and are confident in adding another 10 – 20 locations to the Australian footprint by the end of 2020," added Bhardwaj.
IWG currently operates in 77 locations in Australia adding two new locations to its portfolio in the first half of 2020 with the opening of Spaces Riparian Plaza in Brisbane and Spaces 60 Martin Place in Sydney. "Both locations have proven to be successful additions with strong demand for a high quality product. In October, we will be adding a third location with Spaces Two Melbourne Quarter, located in the Docklands, which will add a further 12,000sqm+ across our growing portfolio", said Damien Sheehan, Country Head for IWG in Australia.
Australia has always been an early adopter of flexible working culture and in recent years, its flexible workspace market has rocketed. Last year's Australian Co-working Market report saw a 41% year-on-year increase[i] in the supply of flexible workspaces. Pre Covid-19, flexible working as a part of corporate businesses real estate strategy was increasing and discussions have only increased as a result of what employees are now seeking to become embedded into a company's work culture.
As an investment, flexspace is a tried and tested business model, promising low staffing requirements and strong customer retention rates. Thanks to the contract-based nature of flexible office services, fewer recurring customers are required for generating a healthy profit (compared to, for example, dining outlets).
IWG has more than 30 years of experience of launching and running flexible spaces all over the world, and an array of established flexible office and coworking brands under its belt to match different demographics and local business needs.
Find out about becoming a franchise partner with IWG.
IWG is leading the workspace revolution. Our companies help more than 2.5 million people and their businesses to work more productively. We do so by providing a choice of professional, inspiring and collaborative workspaces, communities and services.
Digitalisation and new technologies are transforming the world of work. People want the personal productivity benefits of living and working how and where they want. Businesses want the financial and strategic benefits. Our customers are start-ups, small and medium-sized enterprises, and large multinationals. With unique business goals, people and aspirations. They want workspaces and communities to match their needs. They want choice.
Through our companies we provide that choice, and serve the whole world of work: Regus, Spaces, No18, Basepoint, Open Office and Signature. We create personal, financial and strategic value for businesses of every size. From some of the most exciting companies and well-known organisations on the planet, to individuals and the next generation of industry leaders. All of them harness the power of flexible working to increase their productivity, efficiency, agility and market proximity.
Join us at www.iwgplc.com.
Simon Condon, Group Head of Communications, IWG, [email protected]