Hello, I have a question about starting coworking space in NY/NJ area. Looking into franchise Has anyone joined INTELLIGENT OFFICE franchise. Their FDD does not give any numbers about how much an average Franchisee makes. It only tells the revenue. Does anyone know how to get that number before signing franchise contract? For that matter, can someone tell me how much an average coworking space makes? Thank you very much. Ray
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Ray,
Have you not prepared, or been offered, a projected pro forma for the space? TIO should be able to offer you some projections regarding revenue, but your underlying costs are going to have a huge impact on your profitability - the most significant of these being your real estate costs. The amount you spend on your lease/mortgage will become your single largest monthly expense, as it becomes your cost of goods sold. So you will really need to evaluate your space costs and how those compare to your projected revenues.
If done properly - with a healthy percentage of private offices in your product-mix - coworking spaces certainly can be profitable, but there are so may variables involved (based on market) that it’s hard to provide an estimated profit margin.
If you would like, I would be happy to work with you on evaluating your various options. You can reach me at [email protected] or 720-841-6541.