The Coven

The modern professional workforce is fractured. Remote workers, independent contractors, and early-stage entrepreneurs increasingly find themselves isolated in home offices, underserved by generic coworking chains that prioritize density over belonging, and locked out of networks that could accelerate their businesses. For the roughly 7 million potential members who identify as women, nonbinary, or transgender and who operate in mid-size and smaller American cities — places the coworking industry largely ignores — the problem is compounded. There is no third place designed with their professional needs, safety, and community in mind. The Coven franchise was built to solve exactly that problem. Founded in 2017 in Minneapolis, Minnesota, by four women who emerged from the advertising industry — Alex West Steinman, Erinn Farrell, Bethany Iverson, and Liz Giel — The Coven launched with a clear mission: create inclusive, community-centered coworking spaces that center members identifying as women, nonbinary, and transgender, while remaining open to all individuals. Alex West Steinman serves as Co-Founder and CEO, and the company's headquarters are now based in St. Paul, Minnesota. The brand initiated its franchise model in 2022 and by February 2026 had expanded to nine locations across Minnesota and Wisconsin, with its most recently opened location being The Coven Richfield — the brand's sixth Minnesota location and its seventh franchise-owned space. The Coven has attracted a sophisticated investor base including Lightspeed Ventures, New Age Capital, Launch, F.R. Bigelow, the Mortenson Family Foundation, Pablo Capital, and Groove Capital, signaling institutional confidence in both the mission and the business model. For franchise investors evaluating a differentiated coworking concept with genuine community demand, a defined niche, and an early-mover advantage in underserved markets, The Coven represents a franchise opportunity unlike anything currently operating at scale in the coworking category.

The coworking and flexible workspace industry in the United States has undergone a seismic structural shift since 2020. The accelerated adoption of hybrid and remote work models permanently expanded the addressable market for third-place work environments, with industry analysts estimating that the global flexible workspace market is projected to grow at a compound annual rate exceeding 15% through the late 2020s, with the U.S. remaining the largest single national market. Prior to the pandemic, coworking was largely concentrated in Tier 1 cities — New York, San Francisco, Chicago, Los Angeles — and catered predominantly to tech freelancers and startup founders. The post-pandemic rebalancing has driven meaningful demand into Tier 2 and Tier 3 cities, exactly the markets The Coven is strategically targeting. The secular tailwinds benefiting this specific brand are multiple and reinforcing. The number of women-owned businesses in the United States has grown substantially over the past decade, with female entrepreneurs now launching businesses at consistently higher rates than their male counterparts in many sectors. The rise of the creator economy, freelance consulting, and independent professional services has created millions of workers who need community infrastructure rather than just a desk and Wi-Fi. Meanwhile, the demand for psychologically safe, identity-affirming professional environments has never been stronger among women, nonbinary professionals, and transgender workers who report meaningful barriers to comfort and belonging in generic coworking spaces. The coworking category itself remains relatively fragmented at the local and regional level despite the dominance of a few large national operators, creating genuine white space for differentiated concepts with a strong community identity. The Coven operates at the intersection of three durable macro forces: the normalization of remote and hybrid work, the growth of women-led entrepreneurship, and the increasing consumer preference for values-aligned brands — a convergence that creates a structurally advantaged demand environment for this franchise opportunity.

The Coven franchise cost structure reflects the realities of establishing a physical community space that combines coworking infrastructure, design-forward aesthetics, event programming, and hospitality. The initial franchise fee is $50,000, paid upfront upon signing the Franchise Agreement. For context within the broader coworking and business-services franchise category, a $50,000 franchise fee positions The Coven in the mid-range — above entry-level service concepts but below premium territory-based or multi-unit development agreements that can carry fees of $75,000 to $150,000. The total initial investment required to open a Coven location ranges from $213,400 to $465,200, a spread driven primarily by lease costs, leasehold improvements, and fixtures and furniture choices that vary significantly by market and building type. The investment breakdown is detailed in The Coven's Franchise Disclosure Document and includes three months of rent estimated at $45,000 to $84,000, leasehold improvements of $50,000 to $100,000, fixtures and furniture of $15,000 to $100,000, design and architectural fees of $5,000 to $35,000, design services of $15,000 to $25,000, and a community grand opening marketing campaign fixed at $10,000. Additional line items include lease, utility, and security deposits of $2,000 to $10,000; equipment costs of $2,500 to $5,000; technology including The Coven's digital community platform, booking software, and designated software covering three months of fees at $4,400 to $9,200; signage at $2,500 to $5,000; training expenses of $2,000 to $8,000; licenses, permits, and professional fees of $3,000 to $5,000; insurance at $1,000 to $2,000; inventory of $1,000 to $5,000; and three months of additional operating funds at $5,000 to $10,000. A design and build investment of $150,000 is noted separately as a key capital consideration for prospective franchisees. The ongoing royalty structure includes a monthly fee of 10%, of which 2% is specifically allocated to marketing spend as a national brand fund contribution. The Coven does not provide direct financing to franchisees but actively assists prospective Community Owners in securing startup capital through local community foundations and preferred lending partners, a notable differentiator in a franchise category where funding access can be a significant barrier for the brand's target franchisee profile.

The Coven operating model is built around what the brand calls a Community Owner framework — a term that reflects both the franchisee's ownership stake and their role as the cultural steward of a local community hub. Daily operations combine the functional infrastructure of a coworking space (private offices, open desks, conference rooms, event spaces) with an active programming calendar of workshops, networking events, and professional development sessions that are core to the membership experience rather than optional add-ons. This programming-intensive model requires franchisees who are genuinely engaged with community building, not simply real estate operators looking to lease desks by the day. Staffing requirements center on a community management team that balances hospitality, operations, and member relations — a labor model more analogous to boutique fitness or member club operations than to traditional coworking chains. The Coven's technology stack, including its proprietary digital community platform and booking software, supports member management, space reservations, and event coordination, with three months of software fees bundled into the startup cost structure. Training expenses of $2,000 to $8,000 are included in the total investment range, covering both pre-opening preparation and ongoing operational alignment with corporate standards. The brand's franchise support infrastructure includes site selection assistance, with fees ranging from $0 to $2,000 depending on the market, reflecting a flexible approach to territory development. The Coven supports franchisees in accessing local community foundations and lending partners, acknowledging that its target Community Owner pool may include first-time franchise operators who benefit from capital-raising guidance. The format is designed for urban and suburban inline spaces rather than ground-up construction, which keeps build-out costs within the investment range and allows franchisees to activate existing commercial real estate in neighborhoods already experiencing foot traffic and professional community activity.

Item 19 financial performance data is not disclosed in the current Franchise Disclosure Document for The Coven franchise. This is a material fact for prospective investors conducting unit economics analysis, and it is worth contextualizing carefully. The absence of Item 19 disclosure is not uncommon for younger franchise systems — The Coven only launched its franchise model in 2022, giving it a relatively short track record of multi-unit franchised operations from which to construct statistically meaningful performance disclosures. What the available data does allow is a market-based analysis of revenue potential. Coworking spaces in mid-size U.S. markets typically generate annual revenue in the range of several hundred thousand dollars to well over a million dollars depending on membership density, event revenue, day-pass volume, and private office premiums. The Coven's membership model, which serves individuals identifying as women, nonbinary, and transgender as well as all individuals, and which incorporates event programming as a revenue stream alongside traditional coworking memberships, suggests a diversified revenue base that is structurally less dependent on a single income type. The brand's total addressable market of over 7 million potential members across its target geographies in the middle and southern United States represents a significant runway for revenue growth at both the system and unit level. The investment range of $213,400 to $465,200 implies a payback horizon that is highly sensitive to membership ramp speed and occupancy rates — prospective franchisees should conduct rigorous local market demand analysis and engage directly with existing Community Owners to gather operational context before committing capital. The growth trajectory of the system itself — from two locations at the time of franchising launch in 2022 to nine locations by February 2026 — suggests that unit economics are sufficiently viable to attract and retain franchise operators, even in the absence of formal Item 19 disclosure.

The Coven's unit growth trajectory since launching its franchise model in 2022 is one of the most compelling data points in the franchise's investor profile. Starting from two corporate locations in the Twin Cities — with the second St. Paul Cathedral Hill location having opened in January 2020 — the brand activated its franchise model and grew to five locations by September 2023, adding locations in Eau Claire, Wisconsin (its first out-of-state franchise), St. Louis Park, Minnesota, and two additional Minneapolis neighborhoods including the Eat Street and East Lake areas. By June 2024, the system had reached six locations and was actively planning a seventh in Marshfield, Wisconsin. By February 2026, the network had reached nine locations with the opening of The Coven Richfield, representing the brand's sixth Minnesota location and seventh franchise-owned space. That is a net addition of seven units in approximately four years from the launch of franchising — a growth rate that, while modest in absolute terms, reflects disciplined market-by-market expansion into communities where the brand's inclusive positioning fills a genuine gap rather than competing head-to-head with entrenched coworking operators. The brand's competitive moat is built on three reinforcing pillars: a first-mover identity in the inclusive coworking niche, a proprietary community platform and digital infrastructure that creates operational consistency across locations, and an institutional investor base — including Lightspeed Ventures, New Age Capital, Pablo Capital, and Groove Capital — that provides both capital resources and strategic credibility. The Coven's stated expansion strategy targets what it describes as "underdog" cities in the middle and southern United States, a deliberate positioning choice that reduces competitive friction with large national coworking operators concentrated in Tier 1 coastal markets while addressing a demonstrated demand for inclusive professional community spaces in cities that have historically been underserved by both coworking infrastructure and mission-driven business concepts.

The ideal Coven franchise candidate is a purpose-driven operator with genuine alignment to the brand's inclusive community mission and sufficient operational capacity to manage a hospitality-intensive, programming-active coworking environment. Prior experience in community management, hospitality, boutique fitness, membership-based businesses, or professional services strongly correlates with the operational demands of the Community Owner role. The brand's financing assistance model — connecting franchisees to local community foundations and preferred lending partners rather than offering direct corporate financing — suggests a preference for operators who are embedded in their local markets and have established relationships with community capital sources. Prospective franchisees should expect a timeline from agreement signing to opening that includes a build-out phase supported by design and architectural fees of $5,000 to $35,000 and design services of $15,000 to $25,000, both included in the total investment range. Available territories are concentrated in the Midwest with active expansion focus on underserved mid-size markets in the central and southern United States, representing a geographically broad opportunity for operators in cities where inclusive coworking infrastructure is essentially absent. The grand opening marketing campaign, fixed at $10,000 and included in the total investment, provides a structured launch framework for new locations. Multi-unit development is a potential pathway for operators who successfully establish their first location, consistent with the brand's ambition to reach a potential market of over 7 million members through national expansion. The franchise agreement structure, combined with a community-first operating philosophy, creates a model best suited to owner-operators who intend to be actively present in their spaces rather than absentee investors seeking passive returns.

For investors conducting serious due diligence on The Coven franchise opportunity, the core investment thesis rests on a convergence of structural demand drivers and early-mover positioning that is difficult to replicate. The brand identified and operationalized a genuine gap in the coworking market — inclusive, community-centered professional spaces in underserved mid-size cities — before larger operators recognized the opportunity, and has built a franchise model that encodes that positioning into every aspect of the customer experience, from physical design to event programming to membership culture. With nine locations across Minnesota and Wisconsin as of February 2026, a total investment range of $213,400 to $465,200, a $50,000 franchise fee, and institutional backing from investors including Lightspeed Ventures and New Age Capital, The Coven presents a differentiated franchise opportunity in a growing category with documented secular tailwinds. The absence of Item 19 financial performance disclosure in the current FDD is a due diligence variable that prospective investors must weigh carefully alongside the brand's growth rate, market positioning, and the qualitative evidence of operator viability reflected in seven franchise-owned locations already operating or in development. PeerSense provides exclusive due diligence data including SBA lending history, FPI score, location maps with Google ratings, FDD financial data, and side-by-side comparison tools that allow investors to benchmark The Coven franchise against comparable concepts across the coworking and membership-based services categories. Explore the complete The Coven franchise profile on PeerSense to access the full suite of independent franchise intelligence data.