About DAYBASE Franchise
Daybase is a flexible workspace franchise providing on demand workspots and meeting facilities for remote workers and distributed teams.
The concept serves individuals who work from home full or part time and businesses with employees spread across multiple locations who need professional workspace outside a traditional office.
The franchise fee is $50,000, and the company has been franchising since 2021 under Daybase, Inc.
DAYBASE Franchise Cost & Fees
Minimum Investment
$1.3M
Average Investment
$1.5M
Maximum Investment
$1.7M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $50,000 | One-time payment upon signing |
| Royalty Fee | 7% of Workspot’s monthly Gross Revenue of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 3% of Workspot’s monthly Gross Revenue (Brand Fund Contributions) | National brand fund |
| Total Investment Range | $1,250,600 – $1,718,500 | Includes build-out, inventory, working capital |
The investment range of $1.3M–$1.7M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (7% of Workspot’s monthly Gross Revenue) and marketing fee (3% of Workspot’s monthly Gross Revenue (Brand Fund Contributions)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $50,000 | $50,000 |
| Rent (3 months) | $35,000 | $55,000 |
| Security Deposit | $55,000 | $80,000 |
| Insurance (3 Months) | $500 | $4,000 |
| Market Introduction Program | $0 | $20,000 |
| Training Expenses | $100 | $8,000 |
| Real Estate & Construction Management Services | $25,000 | $30,000 |
| Construction / Leasehold Improvements | $595,000 | $865,000 |
| Furniture, Fixtures and Equipment | $350,000 | $450,000 |
| Computer System | $4,000 | $5,500 |
| Signage | $6,000 | $8,000 |
| Opening Inventory and Supplies | $5,000 | $8,000 |
| Miscellaneous Opening Costs | $20,000 | $25,000 |
| Additional Funds – 3 Months | $105,000 | $110,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $40,000 |
| Renewal Fee | $5,000 (Successor Franchise Fee) |
| Technology Fee | $1,000 per calendar month (Software License Fee) |
| Audit Fee | Cost of inspection or audit, including legal fees and independent accountants’ fees, plus travel expenses, room and board, and compensation of our employees (due if you fail to report or understate Gross Revenue by 2% or more) |
| Success Center Fee | 2% of Workspot’s monthly Gross Revenue |
| Sales Fee | 2% of Workspot’s Gross Revenue |
| Local Community Building Spending Requirement | Ranges from 1% to 3% of Workspot’s projected annual Gross Revenue |
| Cooperative Contributions | Up to 2% of Workspot’s monthly Gross Revenue (if formed) |
| Consultant Fee | 5% of Workspot’s monthly Gross Revenue, plus reimbursement for Consultant’s extraordinary out-of-pocket operating expenses incurred in managing the Workspot, as well as interest on any Consultant Loaned Funds |
| Opening Set-Up and Support | Our personnel’s daily charges (including wages) and travel-related expenses (if additional/special guidance requested) |
| Retraining of Managers | $5,000 per person |
| Annual Meeting / Convention | Will vary (not to exceed $500 per person; does not include your actual out-of-pocket attendance costs) |
| Product and Service Purchases | Varies depending on products and services you buy from us or our affiliates |
| Testing and Evaluation Costs | Our actual testing/evaluation costs (amount depends on circumstances) |
| Relocation | Not to exceed $25,000 plus reasonable costs we incur |
| Inspection Fee | Actual costs of first follow-up audit; $2,500 for the second and each follow-up evaluation/requested inspection |
| Interest | Lesser of 1.5% per month or highest commercial contract interest rate law allows |
| Administrative Fee | $100 |
| Non-Compliance Fee | $250 to $1,000 for deviations from operational requirements/Brand Standards |
| Costs and Attorneys’ Fees | Varies under circumstances and depends on nature of your non-compliance |
| Indemnification | Varies under circumstances and depends on nature of third-party claim |
| Management Fee | Up to 10% of Gross Revenue, plus any out-of-pocket expenses incurred in connection with the Workspot’s management |
| Remedial Expense | Out-of-pocket cost reimbursement |
| Tax Reimbursement | Out-of-pocket cost reimbursement |
| Insurance Reimbursement | Out-of-pocket cost reimbursement |
| De-Identification Fee | Cost reimbursement |
| Training Cancellation Fees | Varies depending on the training program cancelled and when you cancel attendance |
| Liquidated Damages | Product of either 24 or the number of months that would have remained in franchise term (as of the effective date of termination) had the Franchise Agreement not been terminated, whichever is shorter, multiplied by average monthly Royalties and Brand Fund contributions that were due and payable to us during the 12 months before the month of termination (or for such lesser period that the Workspot has been open, if less than 12 months) |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 3-5 days |
| Classroom Training | 32 |
| On-the-Job Training | 0 |
| Training Location | New York, New York (or virtually or at another designated location) |
| Additional Training | Franchisor may require management personnel to attend various training courses and programs periodically, for which a fee (currently $5,000) may be charged, plus franchisee's compensation and expenses. Franchisees (or approved representatives) must also attend an annual meeting, with a potential meeting fee (currently $500) plus travel costs. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | May be as small as a few blocks or as large as an entire county. |
| Description | Franchisees operate at a specific, accepted location within an 'Area of Protection' defined by geographical boundaries (city blocks in urban areas, streets, neighborhoods, cities, counties, or zip codes in less dense areas). Within this Area of Protection, the franchisor and its affiliates will not own or operate, or allow another franchisee or licensee to operate, another DAYBASE Workspot at traditional locations. However, the franchisor retains rights to operate or license non-traditional locations, other concepts, or use other distribution channels within the area. Franchisees have a right of first refusal for an 'Overflow Workspot' if minimum occupancy standards are met. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Fee | $5,000 |
| Renewal Conditions | To renew, the franchisee must request a business review 6-9 months before term end, have substantially complied with all agreements and Brand Standards, remodel/upgrade the Workspot to current standards, sign the then-current franchise agreement and releases, and pay the successor franchise fee. The new agreement's terms may differ materially, but the Area of Protection, Royalty, Software License Fee, and Brand Fund contribution levels will remain the same for the unexpired portion of the original term. |
| Transfer Fee | $40,000 |
| Transfer Conditions | Transfers require prior written approval. Conditions include the transferee meeting franchisor's qualifications (business experience, aptitude, financial resources, no competitive business interest), the franchisee being in good standing with all payments and reports, completion of initial training by transferee's management, the transferee having site occupancy rights for the expected term, payment of a transfer fee, the transferee agreeing to repair/upgrade the Workspot, and the transferring parties signing a general release and post-term non-compete covenants. |
| Termination for Cause | Franchisor may terminate for various franchisee defaults including material misrepresentation, failure to find/secure an acceptable site or open the Workspot by deadline, abandonment or failure to operate, unapproved transfer, felony conviction, dishonest/unethical conduct, foreclosure on assets, misuse of confidential information, violation of non-compete, violation of material law, failure to report Gross Revenue or pay fees, underreporting Gross Revenue by 2% or more on three occasions or 5% or more in any period, failure to maintain insurance, failure to pay taxes, repeated defaults, insolvency, violation of anti-terrorism laws, loss of premises, failure to meet Minimum Performance Standards, or causing a Data Security Incident. |
| Non-Compete Period | During the term of the franchise and for 2 years after termination or expiration. |
| Non-Compete Details | During the franchise term, the franchisee, its owners, and immediate family members may not have an interest in, perform services for, or loan money to a Competitive Business (defined as any business providing workspace/co-working/flexible office space or franchising such businesses), wherever located. For two years after termination or expiration, the same restrictions apply within the Workspot’s site, within 30 miles of the Workspot’s site, or within 30 miles of another DAYBASE in operation or under construction. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee entity must designate an individual 'Managing Owner' with at least 5% ownership interest, who is approved by the franchisor and responsible for managing the business and making decisions. The Managing Owner must attend an initial orientation. The Workspot must also have at least one fully-trained general manager ('Base Manager'), three assistant managers ('Base Lead'), and one cleaning crew member ('Base Porter') on staff. All owners are generally required to personally guarantee all franchisee obligations. |
| Required Suppliers | Franchisor and its affiliate are the designated (only) suppliers of DBTech software. Franchisees must use franchisor-designated architects, engineers, and Project Managers for construction and development, and acquire specific software, furniture, fixtures, equipment, consumables, signage, in-space amenities, cleaning supplies, general contractor services, agent of record services, employer of record services, and the Computer System only from designated or approved suppliers. |
| Supply Restrictions | Franchisees must buy or lease all Operating Assets and other products and services only according to Brand Standards and, if required, only from franchisor-designated or approved suppliers (which may include the franchisor or its affiliates) at prices chosen by those suppliers. |
| Franchisor Revenue from Suppliers | Franchisor and/or its affiliates may derive revenue from franchisee purchases and leases, including by charging prices exceeding their costs for services/products they sell, and from promotional allowances, volume discounts, and other amounts paid by designated, approved, or recommended suppliers. As of 2021, no revenue was derived from unaffiliated suppliers due to no operational franchises. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | If a Management Consulting Agreement is signed, the Consultant (franchisor or affiliate) may provide 'Consultant Loaned Funds' by depositing funds into the operating account or paying expenses directly if there are insufficient funds. These funds accrue interest at the highest legal rate and are repayable over the term of the Management Consulting Agreement. No security interest or personal guarantee (beyond the agreement) is required, and prepayment is allowed without penalty. The franchisor does not offer other direct or indirect financing or guarantee franchisee obligations. |
DAYBASE Franchise Earnings — Item 19
DAYBASE does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
DAYBASE does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
DAYBASE Litigation & Risk Flags
Clean Litigation RecordDAYBASE has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
DAYBASE System Growth
Total Units
0
Franchised
0
Company-Owned
0
DAYBASE currently operates 0 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 0 | 0 | 0 |
| 2020 | 0 | 0 | 0 |
| 2021 | 0 | 0 | 0 |
Transfers: 0 | Closures: 0
Franchisor Financials (Item 21)
0
Net Income
$-130,280
Total Assets
$250K
DAYBASE Franchise — FAQ
The total investment to open a DAYBASE franchise ranges from $1,250,600 to $1,718,500, per their Franchise Disclosure Document. This includes the initial franchise fee of $50,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
DAYBASE charges a royalty fee of 7% of Workspot’s monthly Gross Revenue of gross sales, plus a 3% of Workspot’s monthly Gross Revenue (Brand Fund Contributions) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the DAYBASE Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from DAYBASE to ensure you have the most up-to-date version.
DAYBASE does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
DAYBASE has been franchising since 2021. The FDD shows an investment range of $1,250,600-$1,718,500, a 7% of Workspot’s monthly Gross Revenue royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $50,000 and the total investment ranges from $1,250,600 to $1,718,500 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from DAYBASE and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with DAYBASE or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com