Office Evolution Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$193,000 - $2,178,000
Franchise Fee
$31,500
Total US Locations
84
Business Summary
Office Evolution® businesses provide shared office services, including executive suites, temporary office use, conference and training room use, co-working/drop-in workspace, business center locations, and professional business addresses. Office Evolution also offers a 'Work Simple' concept, which provides similar shared office services but is typically located in Class B or C buildings with a midscale aesthetic and basic, high-quality technology. Office Evolution Business locations are generally in Class A or B buildings in suburban markets, featuring modern, midscale to upscale aesthetics and robust full-service technology. These businesses serve the needs of business customers and compete with other shared office and co-working operators.
Corporate History
OE Franchising, LLC, the current franchisor for Office Evolution, was formed in Florida on March 4, 2022, and began offering franchises in May 2022. It acquired the Office Evolution system in April 2022 from OE Franchise, LLC. The predecessor to the system, Office Evolution, LLC, was formed in Colorado on January 21, 2013. The ultimate parent company, Boulder Office Partners, LLC, was formed on December 12, 2002, and first began operating Office Evolution Businesses in April 2003. This parent company operated the businesses until December 31, 2012, before transferring them to an affiliate, OE Colorado, LLC. OE Franchising, LLC is also a member of the United Franchise Group, an affiliated group of various franchising brands.
Financial Overview
Investment Range
$193,000 - $2,178,000
Franchise Fee (Low)
$31,500
Franchise Fee (High)
$49,500
Royalty %
7.5%
Marketing %
3%
Equipment Costs (Low)
$30,000
Equipment Costs (High)
$1,135,000
Working Capital
$90,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Office Evolution's financial statements show a positive trend in financial health. The company's cash reserves have increased, and long-term debt has decreased over the last three fiscal years, from 2022 to 2024. In 2024, Office Evolution reported a net profit of $623,270, a turnaround from losses in the prior two years. Management has assessed the company's ability to continue operations as a 'going concern' for at least the next 12 months and has determined there is no substantial doubt. An independent auditor has issued an unqualified opinion on these financial statements, indicating they present the company's financial position fairly.
Financing Details
Office Evolution does not offer any direct or indirect financing to franchisees. Furthermore, Office Evolution does not guarantee any franchisee's notes, leases, or other obligations.
Performance Metrics
Total US Locations
84
Franchised Units
84
Corporate Units
0
Avg Square Footage
8,000
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
5
Litigation Summary
Office Evolution and its affiliates have disclosed five past legal matters. One case from 1993 involved an affiliate, Signarama, facing a Federal Trade Commission complaint alleging false representations of sales and profitability, and failure to disclose transfer fees. This resulted in an injunction against certain practices. Another matter from 1996 involved Signarama selling franchises in Maryland when its registration had lapsed, which was settled with rescission offers and a compliance program. In 2021, an affiliate, The Great Greek Franchising, LLC (TGG), entered into a consent order with California's Department of Financial Protection and Innovation for prematurely collecting initial franchise fees and not properly disclosing changes to its registration. TGG agreed to pay a penalty, offer rescission, and attend continuing education. Most recently, in March 2022, TGG and Graze Craze Franchising, LLC (GCZ), along with their affiliate UFG Group, Inc., entered into two separate consent orders with California related to alleged franchise offerings without valid registration at a trade show in October 2021. These two cases resulted in desist orders, administrative penalties of $5,000 each, and a requirement for ongoing independent monitoring of franchise sales compliance for up to three years. Office Evolution currently has no pending litigation or litigation against its franchisees from the past fiscal year, and no completed litigation.
Bankruptcy History
Office Evolution does not have any bankruptcy history that needs to be disclosed.
Agreement Terms
Initial Term
35 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Office Evolution franchisees must be in good standing, provide written notice of their intent to renew 7 to 12 months before the current term expires, and meet several conditions. These conditions include substantially complying with all provisions of the existing agreement, satisfying all monetary obligations, and having the right to remain in their current Business Center or securing an approved substitute location. Franchisees may also need to undertake additional training, repair or replace equipment, and modernize their Business Center to meet current brand specifications. Additionally, franchisees and their principals must execute a general release of claims and sign Office Evolution's then-current franchise agreement, which may contain materially different terms, including potentially higher royalty and marketing fund contributions.
Training & Support Program
Franchisor Assistance
Office Evolution provides extensive support to its franchisees. Before opening, the franchisor assists with defining a protected search area, site selection guidelines, and securing an approved location. Franchisees receive access to confidential operating manuals and a list of approved suppliers. Office Evolution also provides proprietary templates and specifications for the Business Center's design, layout, and build-out, along with initial training for the franchisee and their Business Center Manager, which includes remote instruction, corporate training, and on-site instruction. After opening, ongoing support includes additional training programs and refresher courses (some mandatory, some optional, for a fee), continuing consultation and advice via phone, email, and intranet, and on-site assistance (for an additional fee). Office Evolution also reviews and approves advertising materials, administers a marketing fund, conducts inspections and audits of business operations, updates operations manuals, researches new technology and services, and provides brokerage services for the Business Centers.
Initial Training Hours
155
Training Location
Virtual and West Palm Beach, FL
Ongoing Support
After opening their Business Center, Office Evolution franchisees can expect ongoing support including additional training programs and refresher courses, which may be mandatory and incur a fee. The franchisor provides continuous consultation and advice through telephone, email, and intranet communications, with optional on-site assistance available for a fee. Office Evolution reviews and approves franchisee advertising, administers the marketing fund, and conducts periodic inspections and audits to ensure compliance with system standards. The franchisor also supplements and revises its Franchise Operations Manuals and conducts research on new technology, build-out methods, and approved services to keep the system updated. Franchisees are also required to attend an annual conference, for which they pay a fee.
Franchise Requirements
Ideal Candidate Profile
Office Evolution seeks franchisees (or their designated Representative) who are committed to direct, day-to-day, full-time supervision and management of the Business Center. The Representative or Business Center Manager must satisfy Office Evolution's business criteria, successfully complete its training programs, and dedicate their full-time efforts to the franchise. This individual cannot engage in other businesses or activities that would conflict with their operational responsibilities. For multi-unit developers, they must maintain at least a 51% equity interest in each franchised entity.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
commercial
Owner Participation
Hands-On
Territory Type
Limited
Territory Size Requirements
Office Evolution territories are defined in two stages. Initially, a temporary 'Protected Search Area' is granted to search for a location, which terminates once a Business Center site is approved and secured. Subsequently, a 'Designated Territory' may be established around the approved Business Center, defined by factors such as a radius, demographics, zip codes, streets, landmarks, or county lines. The size of this Designated Territory will vary and does not have a minimum radius or population associated with it. However, Office Evolution explicitly states that franchisees will not receive an exclusive territory and may face competition from company-owned outlets, other franchisees, or affiliates operating similar services under different trademarks within the Designated Territory.