The workspace company behind the Regus brand has sold its Japanese business in a deal that marks the start of a shift towards a new franchise business model. IWG said that it had struck a partnership with TKP Corporation, under which the Tokyo-listed company had paid £320 million in cash for 130 co-working centres. The deal also involves a long-term franchise agreement, providing TKP with exclusive rights for the use of IWG’s Regus, Spaces and Open Office brands in the country. IWG also will receive a fee for providing services to its Japanese partner, such as international sales, marketing and technology support. The City welcomed the deal, the valuation of which surpassed expectations, and forecast that IWG was in a position to clinch similar transactions
BP ’s sale of its Japanese business to TKP marks a major shift towards its new franchising business model , according to The Times . Conference room and banqueting hall provider TKP , which operates 24 sites across Japan , is paying £ 320 m in cash for IWG ’s network of more than 130 co - working centres , plus a long - term franchising agreement that gives it exclusive rights to use IWG ’s brands in the UK . Mark Dixon , IWG ’s CEO and largest shareholder will join the board of TKP as a NED . He said the transaction realises an attractive valuation for the company ’s assets and that franchising played an increasingly important role in the company ’s strategy .