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Strong and stable: First South African invests in the IWG franchise model

Collaboration with a market-leading company, the promise of a stable market investment and strong chance of ROI and cash flow are just some of the reasons why franchise partners all over the world are shaking hands on deals with IWG.
Strong and stable: First South African invests in the IWG franchise model
South African investors are taking notice and the first franchise deal has been signed in South Africa between a local KZN entrepreneur Cassim Khan - an award-winning multi-franchise owner - and IWG in March 2021, to open flex space franchises in Pietermaritzburg.

“Regus has a great track record and I am happy to have joined the team. I think they look closely and work out the long-term gains over the 10-year term and it’s a great investment in a fast-growing market. My involvement in the commercial property sector, coupled with the IWG franchise model is a recipe for exponential growth in the future,” says Khan.

Together, IWG and Khan will launch the first centre in July 2021. “I’m the first franchisee in the country, which gives me the opportunity to make an even stronger contribution and be part of the first wave – I like the idea of being one of the first movers in the system for South Africa,” he adds.

Economic uncertainties caused by the events of 2020 may have left some investors disorientated – but there has been good news for those who embraced the opportunity to take on an IWG flex-space franchise.

IWG’s global franchise programme was rolled out in 2019 and has gone from strength to strength since. Despite the pandemic, there has been impressive growth in recent months, with new franchises in Germany, the UK, Puerto Rico and Togo.

And many of IWG’s new franchise partners say there’s never been a better time to come on board. With businesses worldwide taking an increasingly flexible approach to where their employees work, partnering with a flexible-office provider as a franchisee looks set to be one of the safer investments to make today.

Not only does flex space support the way many businesses now operate, but it also offers adaptability in a time of economic uncertainty. For firms finding their feet in turbulent times, it presents a low-commitment, low-risk way to lease offices. Pre-pandemic, experts predicted that 30% of all office space would be of the flexible variety by 2030. Today – and in the future – it could play an even more crucial role.

IWG has an increasing number of locations in the suburbs – responding to an evolution of the market, as businesses choose to offer workspace close to where employees live. According to the recent Suburban Economic Survey, local flex space could contribute £196bn ($254bn) to smaller cities, suburbs and towns over the next decade.

New and coming soon

New franchise centres have also opened this year in Djibouti – marking the first IWG centre in the country – and Riyadh, which is Tanami Arabia’s 15th centre. And this momentum shows no signs of slowing. Q4 will see the opening of IWG franchises in the Cayman Islands, Honduras, Gabon and Guinea.

For IWG, the flexible franchise market is key to its ambitious plans for expansion. The group, which has more than 3,400 locations today, wants to multiply that figure by more than tenfold in the next decade – and it has identified the franchise model as the best way of achieving that. “In order to achieve [our] goal of national coverage – every town, city and suburb – it has to be done with partners,” says IWG head of partnerships, Alan van der Westhuizen. “For us, those partners are franchise partners, building-owner partners and investor partners.”

With this in mind, IWG is seeking partners with the ability to operate and grow within a branded framework and open multiple centres across the contracted territory over a two-to-five-year period

The benefits of partnering with an operator of more than 30 years’ standing include the opportunity to open a tried-and-tested business model in an unsaturated yet high-demand industry; advice on the best location to open centres; support finding the right buildings; help structuring floor plans to maximise revenue; IT and marketing services; and business development and business performance review support to ensure the franchise partner’s investment is performing at an optimum level of return. In short, IWG’s franchise model presents an accessible, fully supported and easy-to-operate business opportunity.

As a publicly traded company, IWG is a fully transparent one – and that translates to the way it does everyday business, too. The group’s franchise model is one that rewards long-lasting business relationships, and the best way of doing this is to start off with the right partner. That way, there’s every chance of franchise success.

“South Africa has a lot to offer and is a growing market. SA has some issues, but that should not distract you from great returns,” says Khan
Are you ready to come on board? Find out more about IWG’s franchising partnerships and how to partner with us.

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About IWG

IWG is the global operator of leading workspace providers. 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, Signature and HQ. 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.

The new world of work is here.

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Strong and stable: First South African invests in the IWG franchise model

Strong and stable: First South African invests in the IWG franchise model

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