Serendipity Labs was founded by John Arenas, who was President of Regus Americas. John had the vision to create a flexible culture that differentiated itself from its older office space counterpart (Regus). With over 20+ years in shared office industry, Serendipity Labs is one of the mature coworking franchises. In this article, we will explore Serendipity as a company and what it takes to become a franchisee.
Serendipity Franchise Model
Serendipity prides itself on having a high-end corporate atmosphere with flexible lounge space that converts into event space in the later hours of the night. On average Serendipity has 3 events per week in each location, ranging from networking events to casual meetups. Since Serendipity is a franchise, it has its floorplan template down to a science. Their model is to partner with Landlords or developers who have a minimum of 15,000 sqft, 2 million in liquid assets, and 5-6 million in total net worth to operate a Serendipity location (Ouch). The company operates a spoke-hub model where company-owned locations complement franchisee locations. Essentially, the company makes money from charging franchise licenses, management fees, technology fees, and revenue shares.
So What Are the Costs In Operating A Serendipity Labs?
For a more in-depth breakdown of expenses are responsibilities, please consult the Seredipitiy FDD, which may change from time to time.
- $100-$130/sqft buildout costs (min of 15,000 sq ft)
- Franchise Fee: $75,000 (one-time)
- Site Selection Fee: $15,000 (one-time)
- Development Fee: $20,000
- Training Fees: $225/day
- Technology Fees: $20,000 setup fee (one-time)
- Project Management Fee: $75,000
- Optional construction management Fee: $50,000
- 6% Gross Revenue (total revenue)
- 5% Gross Revenue Management Fee (onsite-management)
- 2% National Marketing Budget
- 2% Local Advertising
- Technology Support: $1,000/mo.
$611,100-$2,900,400 + 15% Gross Revenue + 1,000-4000/mo for the works.
So after reviewing the costs associated with qualifying, getting started, and operating a Serendipity franchise comes the big question: Is it worth it? If you do not have hospitality experience than I would say there is value to learning the ins and outs of coworking from an industry leader. One of the valuable aspects that Serendipity provides over other franchises like Venture X, is the fact that they own their own proprietary software. Although charged at a premium, you receive a unified experience and receive in-house support when running your operations.
Serendipity Franchise Alternative
Whether you are a full-time coworking operator or in the hospitality industry looking for help on how to create your first coworking space, DropDesk offers an all in-one-solution. Since we do not have the same restrictions as a franchise, the costs associated with leveraging our brand are far less than any franchise alternative.
DropDesk Partner Benefits
- Site Selection and Floorplan Designs
- Real-Estate Negotiation
- Consulting, Training, and Remote Management
- On-site Mangement (Optional)
- Proprietary Coworking Management Software
- $0 National Marketing Ad Budget!
- $0 License Upfront
- $0 Franchise Fee
$0 Site Selection Fee
$0 Development Fee
$0 Training Fees