In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for an Office Evolution franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for an Office Evolution franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Office Evolution outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Office Evolution franchise opportunity

Section V – Presentation and analysis of Office Evolution’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 average, median, highest, and gross sales for 1 Office Evolution affiliate and 74 Office Evolution franchisees located in the United States, which have been open for one full calendar year or more as of December 31, 2023, reported gross revenues to Office Evolution every month in calendar year 2023, and do not own their Office Evolution space

• 2023 average, median, highest, and gross sales for 29 Office Evolution locations over 10,000 square feet and 46 Office Evolution locations under 10,000 square feet, which have been open for one full calendar year or more as of December 31, 2023, reported gross revenues to Office Evolution every month in calendar year 2023, and do not own their Office Evolution space

• average months open, total sq. ft., 2023 gross sales, sales per sq. ft., peak occupancy, private offices, and average leads per month for the 75 Office Evolution locations included in the Center of Sales Study

• 2019, 2020, 2021, 2022, and 2023 system wide sales for all Office Evolution locations both in the US and internationally who were open in the calendar year for at least one month

Section VI – Key ratios, comparables, computations, and analyses for the Office Evolution franchise opportunity (exclusive content for Platinum subscribers)

Section I – Office Evolution Franchise Costs

• Office Evolution franchise costs, based on Item 7 of the company’s 2024 FDD:

• Initial Franchise Fee:  $49,500
• DSS Fee:  $9,750 to $19,500
• Leasehold Improvements:  $0 to $600,000
• Furniture, Fixtures, and Equipment:  $30,000 to $750,000
• Site Lease Deposit:  $0 to $600,000
• Pre-Opening Staff, Salaries, Travel, and Training:  $5,000 to $30,000
• Initial Marketing Launch:  $45,000 to $90,000
• Office and Kitchen Supplies:  $1,000 to $5,000
• Legal and Professional Fees:  $15,000 to $60,000
• Insurance:  $2,000 to $20,000
• Architectural Services:  $0 to $85,000
• Transportation and Meals During Training School:  $500 to $5,000
• Additional Funds (0-6 months):  $30,000 to $150,000
• Total Estimated Office Evolution Franchise Costs:  $187,750 to $2,464,000

Section II – Office Evolution’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Office Evolution’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2024 FDD:

• Initial Franchise Fee:  $49,500
• Royalty:  the greater of 7.5% of Gross Revenues or $1,500 per month
• Marketing Fund Contribution:  the greater of 3% of Gross Revenues or $1,500 per month
• Local Marketing:  currently $2,500 per month
• Local and Regional Advertising Cooperatives:  as determined by cooperative members; currently none

Section III – Number of Franchised and Company-Owned Office Evolution Outlets

Franchised

2021

• Outlets at the Start of the Year:  57
• Outlets at the End of the Year:  64
• Net Change:  +7

2022

• Outlets at the Start of the Year:  64
• Outlets at the End of the Year:  78
• Net Change:  +14

2023

• Outlets at the Start of the Year:  78
• Outlets at the End of the Year:  78
• Net Change:  0

Company-Owned

2021

• Outlets at the Start of the Year:  10
• Outlets at the End of the Year:  9
• Net Change:  -1

2022

• Outlets at the Start of the Year:  9
• Outlets at the End of the Year:  1
• Net Change:  -8

2023

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

Section IV – News Updates on the Office Evolution Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Office Evolution Franchise (Item 19, 2024 FDD)

• The financial performance representation information in this Item 19 includes certain financial performance information relating to Office Evolution Stores’ operation in calendar year 2023.

• Office Evolution obtained 100% of the gross sales data for the Stores listed in the Store Sales Table and the other financial performance representations included in this Item 19 from monthly sales reported to it by the Stores.

• The monthly sales reports have not been audited by certified public accountants nor has Office Evolution sought to independently verify their accuracy for purposes of the financial performance representations. Not all Stores properly reported sales in 2023.

• The financial performance representations include annual gross sales of Stores for the year 2023. “Gross Revenues” means all Sales from the sale of products or services, except sales taxes are excluded and refunds and credits are deducted (to the extent the refund or credit represents amounts previously included in gross sales).

• The disclosure in the below tables contain historical information related to Gross Sales for Office Evolution’s leased Office Evolution locations in operation during calendar year 2023.

• Office Evolution obtained 100% of the Gross Revenues data for the franchisees represented from monthly Gross Revenues reported to it by franchisees in their Royalty Reports.

• The Gross Revenues results shown below are a historic representation for 74 franchisees located in the United States and 1 affiliate located in the United States, which have been open for one full calendar year or more as of December 31, 2023, reported Gross Revenues to Office Evolution every month in calendar year 2023, and does not own his or her Office Evolution space.

• Four were excluded for not being open for one full calendar year as of December 31, 2023.

• The Gross Revenues reports have not been audited by certified public accountants, nor has Office Evolution sought to independently verify their accuracy for the purposes of the financial performance representations.

Part 1 – Total Gross Sales of Office Evolution Franchise System

Affiliate Locations

• Number of Locations:  1
• Total Gross Sales:  $433,975
• Average Gross Sales:  $433,975
• Median Gross Sales:  $433,975
• Highest Gross Sales:  $433,975
• Lowest Gross Sales:  $433,975

Franchise Locations

• Number of Locations:  74
• Total Gross Sales:  $41,099,513
• Average Gross Sales:  $547,994
• Median Gross Sales:  $520,432
• Highest Gross Sales:  $1,012,504
• Lowest Gross Sales:  $145,597

Total

• Number of Locations:  75
• Total Gross Sales:  $41,533,488
• Average Gross Sales:  $546,493
• Median Gross Sales:  $517,525
• Highest Gross Sales:  $1,012,504
• Lowest Gross Sales:  $145,597

Part 2 – Gross Sales by Square Footage

Over 10,000 Square Feet

• Number of Locations:  29
• Average Gross Sales:  $674,526
• Median Gross Sales:  $681,531
• Highest Gross Sales:  $1,012,504
• Lowest Gross Sales:  $145,597
• Percentage of Offices at or Above the Average:  55.2%

Under 10,000 Square Feet

• Number of Locations:  46
• Average Gross Sales:  $468,223
• Median Gross Sales:  $440,337
• Highest Gross Sales:  $765,065
• Lowest Gross Sales:  $202,339
• Percentage of Offices at or Above the Average:  56.5%

Part 3 – Size and Capacity of Office Evolution Locations

• The disclosures in the below table contain information related to the square footage and number of available seats for the 75 Office Evolution locations included in the Center of Sales Study.

• The below chart shows the open locations by location name, months open, the rounded total square feet, the Gross Revenues for 2023, and the sales per square feet.

• The private offices column refers to the total number of office spaces available to each location and the average leads/month column refers to the average number of leads that each franchisee received every month.

Key Performance Indicators of Office Evolution (Includes Only Eligible Centers per the Center of Sales Study Criteria)

• Average Months Open:  57
• Average Total Sq. Ft.:  9,884
• 2023 Average Gross Sales:  $547,994
• Average Sales per Sq. Ft.:  $57.67
• Average Peak Occupancy:  90%
• Average Private Offices:  39
• Average Leads per Month:  22

Part 4 – Office Evolution System Wide Sales

• The below graph for Office Evolution Network Wide sales includes data for all gross sales generated by all locations both in the US and internationally who were open in the calendar year for at least one month.

• 2019 Gross Revenues include data for 65 locations, of which 6 were not open the full year. 2020 Gross Revenues include data for 72 locations, of which 7 were not open the full year. 2021 Gross Revenues include data for 76 locations, of which 4 were not open the full year. 2022 Gross Revenues include data for 78 locations, of which 3 were not open the full year. 2023 Gross Revenues include data for 79 locations, of which 4 were not open the full year.

• 2019:  $23,249,477
• 2020:  $24,931,879
• 2021:  $29,849,291
• 2022:  $38,194,024
• 2023:  $42,333,903

• Some outlets achieved these results. Your individual results may differ. There is no assurance you will achieve these results.

Section VI – Office Evolution Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️