Business owner Marcelo Borborema is no stranger to franchising, but the pandemic gave him cause to consider a new stream of business from the flexible workspace sector. Here’s what he found... 

Marcelo Borborema isn’t afraid to change direction if he sees a lucrative opportunity. The Brazilian investor has 30 years’ experience in the vehicle industry as the owner of a car dealership company, but his portfolio also includes fitness centres, sports academies and an events venue. When the pandemic hit, he realised it was time to pivot again.

After witnessing businesses moving away from investing in traditional real estate, Borborema also recognised the huge potential of the flexspace industry – offices that he believes will define the post-pandemic era. 

Earlier this year, he signed a franchise agreement with IWG to develop and open centres in Osasco, a district of Brazil’s bustling metropolis, São Paulo. The Osasco area has the second highest GDP in the state and the sixth highest in the country, and is home to 700,000 people. Borborema plans to meet the growing demand for flexible workspace from businesses and individuals alike.

The plan is to open the first centre this year and another by the second half of 2022. In five years, he hopes to set up a few more centres, but will take stock of the market response to determine how many there will eventually be. The first centre is 1,000sqm in size and located on Osasco’s main avenue, inside a hotel where Borborema is already an investor – a facility that he believes will be an added attraction for customers who may be visiting or need to host clients.

New franchise opportunities

Borborema first came into contact with IWG through the city’s traders’ association, of which he is a member. “At a meeting one of our directors spoke about Regus. That was in July last year and since then I started researching to understand the business and look for opportunities to be part of it through a franchise,” he reveals. “I looked into the company, read all the stories of its beginnings and development. I thought it was a great opportunity, a great company to partner with and develop a business with.” 

He adds: “We are delivering a service in our city with a very well recognised company… at the right time, in the right place. All the ingredients needed for a successful business are there: the region’s tax incentives, the company we are now negotiating, dealing and developing this franchise with, the good economic condition of the city, and this moment of transition for the office sector.” 

Support all the way

For Borborema, there was no question about partnering with any other flexspace provider. IWG’s 30-year track record and presence in more than 120 countries means its reach and expertise is unparalleled. 

He was also impressed by the respect and care he feels the company shows its customers and partners, such as himself. This, he says, was evident in the support he has received from the very start of the relationship. During initial negotiations, he says IWG employees were attentive throughout and always ready to assist with any questions or concerns. And that continued even after the partnership became official. “After signing the agreement, I started to visit IWG centres, where I was very well received and the operation was clearly explained to me,” he says. 

“I did an induction with several leaders of the company in Brazil, which I was surprised to have. I never imagined I would have the president, the vice-president, the directors, and the people in charge of marketing showing me the brand, guiding me through next steps. They dedicated themselves to the project and were committed and involved from the start.”

It’s an approach to business he shares, revealing that he intends to play a very hands-on role in the running of the franchise, making his headquarters at the centre so that he can be on site to develop it himself. He says, “I will be working on the front line, present every day, watching the operation, reading the reports, and thinking of new commercial opportunities for development. My involvement will be total.”  

Once his first centre opens, his target is to achieve good occupancy, to make profit quickly, and grow the business in order to then focus on creating the second centre. He believes that with the predicted continued growth of the flexspace market, the future of the franchise is bright. 

And what advice does he have for someone thinking about becoming an IWG partner? Find the right place, and pick the right partner. “Choose a region that has good commercial possibilities for companies. If you do that and you choose IWG, you'll have much greater opportunities to find success in the flexible office sector.” 

IWG has been pioneering flexspace solutions for businesses for more than 30 years. Looking for your next investment opportunity? Read about IWG’s franchising partnership today.