Co-Working Giants Turn to Franchising Model in Era of Remote Work
Skift Take
WeWork and IWG will vie for an “asset light” future to recover after the pandemic. And with that, branding becomes even more important in the world of work.
Co-working space providers see light at the end of the tunnel, despite the stop-start return to offices.
IWG (International Workplace Group) posted revenue of $1.4 billion for the first half of 2021, and a profit of $722 million on an adjusted EBITDA [earnings before interest, taxes, depreciation, and amortization] basis.
The results are down on the $950 profit in the same period of 2020, but the UK-headquartered company is confident franchising will lead to growth after the pandemic.
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Rather than directly lease buildings, IWG can lend its brand cachet, with names like Regus and Spaces and their respective technology platforms, to other real estate companies or buildings. It represents a quicker route to new countries, leaning on local expertise. [caption id="attachment_439915" align="alignright" width="300"] WeWork Menachem Begin Tel Aviv. Picture: WeWork[/caption] It added 17 new franchise agreGet unlimited access with Skift Pro.
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