United Franchise Group (UFG) and Office Evolution have announced the signing of a strategic alliance. UFG is already affiliated with Venture X, a co-working brand, and paired with Office Evolution, this makes Coworks the largest privately-owned global franchisor in the co-working industry. The brands will be kept separate and distinct, with the potential for more brands to join the Coworks banner in the future.
“It is obvious that the coworking industry is rapidly evolving and as the industry grows, it is being consolidated through acquisitions by the largest players.” said Ray Titus, CEO of United Franchise Group.
“With workplace flexibility becoming a driving force in today’s business, I’m very pleased that Coworks, and therefore UFG, is at the leading edge of this transformation.”
Analysts differ on the size of the opportunity in the co-working space, but do agree that the industry will double in size within the next three to five years, valued at around $40bn – $50bn. The challenges faced over the last two years have seen an increased need for flexible office spaces.
Office Evolution was founded in 2003 in Colorado. The Denver-based team has made it the largest privately owned, shared office, executive suites and coworking franchise brand In North America. It has 75 locations in 25 states with another 5 locations under construction.
“Wherever they live, people need places to work, think and dream,” said Mark Hemmeter, CEO of Office Evolution.
“I’m so happy that, by joining forces with UFG and Coworks, we’ll be there with tomorrow’s workforce, every step of the way.”
Office Evolution provides affordable, flexible work spaces in suburban and secondary markets, and utilizes one employee to run an average unit of 10,000 sq. ft. Venture X builds high-end, premium locations in urban and suburban areas, providing elevated views and utilizing two employees per unit with an average of over 20,000 sq. ft.
“We are especially enthusiastic about the synergies that our companies share — like marketing, sales, real estate, and training — strengths that will support a seamless integration as well as our international master licensing initiatives.” said Michael White, president of Venture X.
“With membership reciprocity between Venture X and Office Evolution, our combined coworking space offerings will be extremely attractive for professionals.”
The two brands combined under the Coworks division boat around 130 locations internationally, with another 100 in development. UFG plans to surpass all co-working companies in terms of locations within three years.
“With the variety of choices, we can now provide within our flexible office spaces,” said Jason Anderson, UFG chief strategy officer and president of Coworks.
“Our goal is to offer members unique levels of amenities and benefits available in our locations, comparable to the brands and loyalty programs within Marriott’s Bonvoy. As we continue to evolve Coworks, we are actively seeking to add other unique flexible office space operators to our portfolio, making us the clear franchise leader in the coworking industry.”