This Coworking-Space Franchise Is Winning Without the WeWork-style Perks Office Evolution might not have kombucha on tap, but it has a nationwide community of entrepreneurs who are willing to lend a helping hand.

By Lydia Belanger

This story appears in the December 2018 issue of Entrepreneur. Subscribe »

Ben Rassmussen

If you're looking for a workspace with Ping-Pong tables and kombucha on tap, Office Evolution isn't the place for you. That's the domain of big players in the space, like WeWork and Regus, which tout Silicon Valley–­style perks that help bind together a community of workers. But Office Evolution founder and CEO Mark Hemmeter saw a marketplace of entrepreneurs who weren't served by that model: They're mostly first-time entrepreneurs over the age of 35 who live in the suburbs, have managed small businesses such as accounting or legal firms, and are already plugged into a more traditional community. Many of his franchisees go to the same churches, country clubs, and grocery stores as their customers, and don't need whiz-bang spaces to commune. Office Evolution was founded in 2003 and started franchising in 2012, quickly opening more than 50 locations -- each of which has its finger on the pulse of what its particular community needs.

Related: 3 Reasons Successful Entrepreneurs Should Become Online Thought Leaders

What are the benefits of franchising for a coworking company?

We have owners talking to other owners. We like to say we're "owners to the third": I'm an owner, our franchisees are owners, and our clients are owners of their businesses. We spend a lot of time building relationships with local Chambers of Commerce or Rotary Clubs -- those organizations are fantastic lead generators for us.

You operated the business for nearly a decade before franchising. What caused you to take the leap?

It's just so important to have that local connection, and we couldn't replicate it with corporate stores. Our franchisees are not seen as foreign entities coming into town when they open up a location. They're seen as members of the community, friends who've been part of that community forever.

Related: 5 Steps for Dispensary Owners Thinking of Partnering With a Franchisor or Licensor

How is that reflected in the way your individual locations operate?

It's very codependent. We're helping our customers build their small business, and their small business has helped our franchise. Our word for our company culture is ohana, which means "family" in Hawaiian. I'm originally from Hawaii. Sometimes when I fly Southwest Airlines, after we land, the flight attendant says, "We're running a little late; to help turn around this plane so it's on time for the next group, would you bring your trash to the front?" That's what we do here. Everybody jumps in to help. We have people who will sign for FedEx at the front desk, or they'll put away mail if one of our Office Evolution employees is sick.

Image Credit: Ben Rassmussen

Related: 3 Things Franchises Should Know About Hiring a PR Firm

Many of your customers are over 35 and entering entrepreneurship for the first time. How do you cater to people at that juncture?

People start at one level and move up as their company grows. We have a whole range of plans and pricing that go from $79 a month to more than $1,000. Everything is month-to-month, and any client can use any Office Evolution location anywhere in the country, 24-7. We know small businesses need to be flexible, and we know that a lot of our customers have families and other obligations that require flexibility, too.

Do your franchisees customize their locations to reflect a local aesthetic?

They put their own spin on marketing and artwork. Our location in Nashville has a lot of great, professional photography of Nashville, and our location in Summit, N.J., has art from the covers of The New Yorker. There's one thing that's universal, though: Right behind the reception desk, there's an orange wall with a very specific piece of art. There is no Office Evolution sign­age when you walk in. But once you've been to one location, if you enter any other, you'll know you're in the right place.

Lydia Belanger is a former associate editor at Entrepreneur. Follow her on Twitter: @LydiaBelanger.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business News

JPMorgan Shuts Down Internal Message Board Comments After Employees React to Return-to-Office Mandate

Employees were given the option to leave comments about the RTO mandate with their first and last names on display — and they did not hold back.

Innovation

4 Ways Market Leaders Use Innovation to Foster Business Growth

Forward-thinkers constantly strive to diversify and streamline their products and services, turning novelties into commodities desired by many.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Leadership

From Elite Athletes to Tech Titans — Discover the Surprising $100-Million Habit That Leads to Extraordinary Success

Success comes from mastering focus, eliminating distractions and prioritizing what truly matters.

Side Hustle

'Hustling Since Middle School': She Started a Side Hustle on Facebook Marketplace — Then a 'Game-Changer' Grew It to $25,000 a Month

Leena Pettigrew's "entrepreneurial spirit" inspired her to build a business with earnings that outpaced her full-time income.

Growing a Business

How Meta Generated $32 Billion in Ad Revenue Last Quarter — and How You Can Create Million-Dollar Weekends Using the Same Strategies

Meta's staggering $32 billion quarterly ad revenue isn't just about size; it's about strategy, systems and execution as well.