If you are already a member, then you can skip this step! Again, one-sided contracts deserve the characterization "unfair" when there does not seem to be a better word for them. This does not apply to contract's renewal or expansion. Thanks again for everything--I'll be happy to recommend your services!" Example # 2. Do you suppose that the lease agreement would simply end, with no consequence to either Regus or the member? I signed up for a Regus co-working office on May 21st. If you need anything else, you can reach me at sandra.melody@regus.com. That would have meant significant economic loss for Hannah, and section 5 says that Regus will not be responsible for that loss. How to get out of your Regus lease, step by step. Based on Veeto's 100% success rate, Regus would probably lose. Anyone whose time is valuable, attorneys included, are susceptible to what I call the "low-value claim" problem (something I have written about extensively on the official Veeto blog, Nothing But Teeth). I moved out of my shared office space on 9/30/2020 as per my agreement. And what would be the penalty if I canceled right now? It then says that you must give this written notice at least three months before that end date. Let me recount how that Regus discussion began. 1 - move in. If we fail to provide the services as warranted, your sole and exclusive remedy shall be the remedy of such failure by us within a reasonable time after written notice. Go there, and find the clause that speaks to Cancellation requirements. Have issues with your Regus contract? They forcibly took 2 months rent without informing us using the deposit card details. Its very irritating." With a contract like that, it is likely that most people who have a gripe with Regus give up before they even begin trying to break their lease agreement because they suppose the deck is stacked against them. This makes it easier for Regus to constantly claim that you owe more. I was shocked. I bet that the reason this term causes the most heartache is that is costs people the most money in aggregate--and it is just sneaky as hell. One Wegus member asks Regus, "Why do you guys send late payment emails before monthly payment is due ( the first of month) Is Regis in that bad of financial shape. Document gripes, as Hannah did by keeping notes on what I called strikes. In a minute, I will illustrate this by showing you what specific actions Hannah took and the result she got (spoiler: she won!). Sure, you could ask your attorney to review your Regus contract and identify any potential pitfalls. Because, often, the hard part about winning a lawsuit is proving the dollar amount of your damages. [The office manager] heard. But what is hard to find is someone who actually figured out how to do something about it--how to actually get out of an unwanted Regus contract. I could go on opining why arbitration is generally favorable to big companies and resentful toward consumers, but instead I will just cite the secretiveness of arbitration: companies like Regus like the fact that arbitrations tends to be confidential, so that if some anomalous consumer does manage to win a case, no one else can learn from it because the arbitration proceedings are required to be held in strict confidentiality. The parts of the Regus lease agreement that people seem to make the most noise about are sections 2.2 and 2.3, which conceal this nasty term called "automatic renewal." However, although this might seem like a simple objective to achieve, it might be harder than it looks. Suppose that the client from Hannah's strike 1 or the clients from strike 4 deciding not to hire Hannah because they felt that Hannah was unprofessional--in the case of strike 1, because the client had to wait for thirty-five minutes before Hannah greeted her, or in the case of strike 4, because Hannah was unable to book a meeting in time. Meanwhile, my friend just called by Regus for selling him a new office. Can you legally break a Regus office lease? So that was added for May and June, and also included in the standing charges for July. Thousands of people have used this trick, because Regus can't hide it anymore. The way Regus currently words their contract is that the lease ends on the last day of the last month. So if I wanted to cancel at this point, you're saying I should give them immediate notice, and let them keep the service retainer? We actually got an email one time from a Regus VP who wanted a refund from Regus because she had been inadvertently charged to use a Regus meeting room (screenshot below, name changed to protect the hilarious). While I did everything correctly and as required, and received an email from Regus saying the retainer would be returned within this time frame, as expected, Regus has not done what they promised to do. If you have heard of Veeto before--perhaps you have read about it in publications like the Huffington Post--then maybe you will understand what I mean when I say that it seems that Veeto has, in this case, performed the miracles ascribed to it. We were handed to a new contact who has only emailed us once. They made various excuses to delay the payment. This will not win you friends in Regus's billing department. The first invoice was for a service retainer of 301.75, equal to the monthly office fee and 88.09 for the pro-rated amount for May. Once Regus found out we were doing that, they backed off and then sent a letter saying they would honor the original contract (as a nice gesture of customer service). That might strike you as a Debbie-Downer analogy to make, but you should remember that Regus leases space to business owners who probably depend entirely on their business for their livelihoods. If you found this tip helpful, join the ongoing Regus discussion on Wegus. How One Attorney Canceled Her Regus Office Lease Contract, And avoided paying an early termination fee--saving her $4,459. That time-consuming part. Section 2.5 seems to say that in the event that a bank run happens, and Regus is not able to provide the service for which it signed a contract to provide, then there would be no consequence for either party. As a Veeto member, Hannah sent her notes from step 1 to Veeto; Veeto's algorithm matched her complaint data with a legal demand letter crafted by Veeto's legal team; Veeto's app generated and sent the letter to a Regus VP; Veeto confirmed the letter's receipt; and within a few days, Regus agreed to release Hannah from her lease agreement exactly as her Veeto-generated letter had demanded. It began as a question about the timing of Regus issuing invoices and ended with a game-plan for getting out of an unwanted Regus contract early. The agreement is fixes for a year but circumstances have changed and I have explained that the rent cost will put us out of business unless we can do something about it. She is an attorney in California, and we will call her "Hannah." What action can we take to get out of this contract and stop them chasing us for rent? No problem. Cannot get out of contract - We agreed to a 2 year contract not knowing that we would have to downsize well into our 1st year. Updated on July 21, 2020 Tagged: agreement cancel cancel agreement cancelation cancellation close close agreement contract delete deposit deposit return end end agreement refund retainer return terminate termination Was this article helpful? It began as a question about the timing of Regus issuing invoices and ended with a game-plan for getting out of an unwanted Regus contract early. Why are there so many complaints about Regus? 2.6.1. Definite scam and theft in invoices Regus despite cancelling the account many times over and over via email and via online portal they keep trying to charge the card they have on file. For that reason, a Regus member is probably not expecting that he will not be able to get what he pays for when he decides to sign a contract with Regus for office space. I made dozens of calls, and gave them my bank account for over five times though I have already put it in my regus account before I moved out. Since Veeto bankrolls Veeto members' lawsuits against companies who fail to immediately satisfy Veeto demands, Regus knows that there is little chance of deterring disgruntled customers like Hannah from moving forward--and also knows, for this reason, that they Veeto members are virtually immune to intimidation. I said I didn’t like asking for help. 2. If you are not yet a member, then you can setup your membership now for $100. Nice offices, and as others have said, its really nice while you're there but when you tried to terminate the contract the unethical behavior starts - actually probably a good business model for them. Warmest regards, Sandra Melody Head of Customer Service Duane Baldwin 1 review. How to get out of your Regus lease, step by step Here are the steps that Hannah took to get out of her Regus contract: Document gripes, as Hannah did by keeping notes on what I called strikes. If the number of months remaining under contract, times your monthly fee, is equal to whatever amount Regus holds as your retainer, and you have missed no payments or incurred any other outstanding fees, then you should be able to terminate your contract immediately. Dear Lori, We really want to help our customers and I am sorry if you’re unhappy with our offer. And to top it, they have EXTREMELY POOR SERVICE, the way complaints are handled, could drive any sane person histeric. In Hannah's case, it meant that even though she knew she had a legitimate claim against Regus that she felt she could win on her own, she was unwilling to fight that fight herself because she did not have time to argue back-and-forth with a slippery company like Regus. Unlimited Veeto Power, starting with your unwanted Regus contract, right now. She emailed the office manager and asked to schedule a call with him. I'm going to have a senior member reach out to you to get more details about your situation and concerns. You can't get out of the contract and WeWork will absolutely not let you out of it. So starting by first trying to understand what Regus's billing sequence is was a smart place to begin. I bought a printer so I wouldn’t have to “bother” them., (something I had to invent just now to keep Hannah's litany of gripes organized), My clients want to meet with me in 13 days. Her Veeto membership cost $42.95, and that membership allows her to Veeto any purchase from any company, not just this Regus lease agreement. I anticipated it ending on 8/3/2020. The phone was not hooked up. It has now been a month since we've heard from them. But did she in this case? Are you punking us, Regus? But if you have not heard of Veeto before, then I am guessing you do not get the joke. 3. Just in case a disgruntled member does not get wrapped up in the closed-door confidentiality of arbitration, Regus wants to cover its bases and attempt to silence all of its members. Regus gets 3 months of rental and we get nothing in return, other than the freedom of the shackles the tenancy agreement currently creates for us. So when people talk about canceling a contract, breaking a contract, or getting out of a contract, if they have legitimate cause like Hannah, because the service provider failed to provide service as agreed, then it is likely that they can legally break the contract in question. Small business owners have begun mimicking the controversial tactics deployed by the tycoon behind Britain’s biggest serviced offices provider to get out of contracts. Even if Regus were to win a lawsuit--which has never happened when Veeto has been on the other side--they would probably have to spend almost as much as the dispute is worth just to hear the verdict. If the answer is yes, then according to this section, Regus could arguably terminate the lease immediately, and Hannah would still be liable to pay the remaining $3,861 due under that lease. It beckons that whole concept of "sunshine is the best antiseptic," in the sense that places where sunshine is not permitted to reach must be filthy. Because Veeto makes it extremely efficient for Veeto members to generate and send legal demands, and then backs those demands by bankrolling any necessary lawsuits, your Regus contract is just one of the many purchases you can effectively Veeto. ...not because the contract excuses Maurice from the 30-day notice requirement, but because the consequence to Regus of Maurice breaching that term are no greater than the amount of retainer Regus is then permitted to keep, which would make everyone square. After all, Regus members sign a lease contract, and if you really dig into that contract, you will realize that it seems quite one-sided, perhaps even unfair, in Regus's favor, of course. We just sent you an email. I'll say it again..utterly disappointing of Regus. Reply. This uncertainty of resource availability reminds me of the disastrous bank runs of 1930 and 1931, which led to the Great Depression. Now, that might seem benign at first, but consider this reversal. I have discovered the kind of company regus is and I want to end that relationship as soon as possible. The second invoice was for the office fee of 301.75 for the entire month of June. On May 21st, I received two invoices. Well section 5 basically says, suppose Regus completely craps its pants and fails to provide any service that it said it would...well, in that case, the business owner cannot pursue Regus for any sort of damages to recover his economic loss. She replied back to say that she had found another office and would not need to renew her lease when it expired later in the year, and she also asked if she could somehow downgrade her membership since she would no longer be using the Regus office space at all (Regus should have taken that offer, as you will see in a minute). Here is the background on it. For if he were expecting this, then why would he sign the contract at all? Then there is section 2.11, which is designed to dissuade Regus customers from suing in court and instead to pursue legal claims against Regus through secret arbitration. Covid-19! 27 October 2020 News Business Matters. Note that Hannah's reason for wanting to get out of her Regus contract early was that her business was suffering due to Regus's inability to provide her with what she was paying for--exactly the reason that we imagined most people who have had bad experiences with Regus had. It leases virtual offices to business owners who need things like a business address, a place to occasionally meet with clients, and a receptionist to answer the phone. Option # 1: Breach of contract by Regus If you read your Regus contract, then you will see that it references either “terms of service” or “house rules,” depending on where you are in the world. When/if Regus responds to try to talk down from the ledge, simply defer to the demand letter that you already sent and refuse to engage in any communication that is not in writing and that is not itself a step toward resolution (like a settlement offer or asking which address to send you a check to). I could not book, On November 10 [the receptionist] and [the receptionist's sidekick, I am guessing] complained to me that I was asking them to print too much and it was hard for them to drop everything for me and could we please set a turnaround time. Regus would say that, yes, the payment for July is due [as soon they could possibly get their hands on it]. She figured out how to get out of her Regus lease contract early, which saved her $4,459. Once we established how the Regus billing system is probably supposed to work, we tackled the question about canceling the Regus contract immediately. Why? We reached out to Regus to see if they were offering any sort of COVID assistance and was was given 3 options. Send the letter in some in manner in which you can certify its receipt, preferably to a VP or higher at Regus. After sending many emails, I am unable to get a return. Initial Regus complaints should be directed to their team directly. Want to get out of your Regus contract? I could go on and on with every story, but the most recent issue is that I cancelled the contract so it wouldn’t renew. Regus received the letter and allowed me to cancel my agreement with them! Each party shall comply with all applicable data protection legislation. Is Regus in breach for not providing the services that were promised? I logged on, and it seems that they have given me a 6 month contract, and when I spoke with someone from Regus on the phone about this, it seems that I have been given a 12 month contract (as opposed to one month)! Regus knows that, even if both Maurice and Regus agreed on those facts, there might be no damages for Regus to recover, since Regus still holds Maurice's retainer in exactly the amount that Regus is alleging he still owes. Today the office assistance asked me to make a request and contact another team again. He replied to say that he was too busy for a phone call and that Hannah should just ask her question via email (he was printing stuff for other tenants, most likely). It depends on the terms of the lease. Firstly we have sent 4 letters from our lawyers, clearly laying out why you are in breach of contract. Regus Offers Terms and Conditions Day Office: Quoted price is lowest hourly Day Office rate available. Well, Regus’ central computer still doesn’t know this, and so I get bills and threatening calls all the time. Veeto is responsible for 42% of all annual consumer arbitration wins in the US. Offer expires 08/31/2014. Hannah is an interesting case, because she of course knows how to do her own legal work. Here are the steps that Hannah took to get out of her Regus contract: Of these five steps, the most difficult and time-consuming are steps 2-4. Section 2.4 says that Regus may determine, at its sole discretion, if a member's "conduct...is incompatible with ordinary office use." Regus will not terminate no matter what. Anyone can follow these five steps if you have enough time to spare and sufficient confidence that spending that time will actually give you the outcome you desire--and really, that just means confidence in yourself, to endure and overcome legal conflict. I imagine that this is the question that anyone who is not an attorney might first ask. Nailed it. I signed a contract with Regus in August 2020 for a 4 month period. Regus acknowledged that I did that correctly by email, and everything. Either keep paying or stop paying and be prepared for the unlikely possibility that WeWork comes after you for it. No. Thus Maurice, or anyone else on a month-to-month Regus agreement, or anyone whose remaining contractual obligations equal the amount of retainer Regus holds, could use this trick to side-step the 30-days notice requirement. But it will take away Regus's leverage over you, which is troublesome given their track record of committing billing errors (always conveniently in their favor, even at the expense of their own employees apparently) and inventing extra charges. 2 - take a smaller office/desk for a longer period of time or 3 - Lose my $5000 deposit and have them come after me via collections for the remaining $5000. Why? She did, after all, suggest that Hannah's use of the printer was a bother. Simply log into your online account, go to the Accounts tab and click on End Agreement. I entered a contract with Regus for 12 months in June this year for myself and my co-founder to work from, initially the plan was to have a main office space and a virtual office Both for 12 months, before i signed the contract we had doubt whether it was necessary, the Regus sales rep advised me that I had the first month free and that if it was not required I could cancel. Extend … She had been in the lobby waiting for our 10:30 appointment since 10:20. It first says that the contract will auto-renew if you do not state in writing that you wish to cancel at the end of the original contract term. Please click the link in the email to confirm your subscription! He said the new policy is that they have to knock to notify the client of the guest., On November 10 I tried booking day offices which I had purchased from [the office manager]. Share. Like many big companies in the US who occasionally run afoul of their disgruntled customers, Regus knows that refusing to immediately satisfy a Veeto demand would result in an immediate lawsuit, bankrolled by Veeto. So, in practical sense, no damages = no case. That way, when you go to cancel your lease, they could invent some reason that you owe more fees, because it is harder for you to get them to refund you for unused retainer than it is for them to dupe you into paying more money sooner than you really should have to. I wonder if the receptionist considered Hannah's copious use of the printer to be incompatible with ordinary office use. Now after the year, they're not letting us cancel, and keep automatically debiting money. Big companies like Regus prefer arbitration for a number of reasons, all because these reasons conspire to deter people from bringing a claim in the first place and give Regus an upper hand at trial should a member bring a claim against Regus anyway. It is extremely frustrating and unprofessional., The office booking system is terrible because I can’t see which windows of time are available. Warmest regards, Sandra Melody Head of Customer Services Private 1 review. Meet one disgruntled Regus member who got out of her contract without paying early termination fees. If your business is failing then I'd recommend you stop paying to conserve the cash. The basis on which we will process Your personal data is set out in our privacy policies (available on our website at There are not enough conference rooms and day offices available to book. Now, i get automatic emails with automatic renewal for much longer then i want, locking me down with them. If your business survives then you can deal with the consequences later. I included section 2.4 here because of what seems to me to be an absurd possibility for Hannah, given the strike 3 that she described above. Example # 1. I will tease this out to drive the point home. Note the stats on this post: almost 2,500 views! I signed up for a Regus co-working office on May 21st. It makes it very hard for me to schedule appointments with my clients because I don’t know when I can get a room. And there does not. Here are two examples, the first of which also comes from a Wegus discussion. And that is why I decided to write this post, because...I found someone. So if you suspect that my analysis here is incorrect, you might be right (unless you are a twelve-year old who reads at second-grade level (or below)--in which case, why are you reading this article at all? There is no way for me to connect to the existing printer. On 10/23/2020, my credit card was automatically charged without my authorization for the amount of $589.15. Regus is terrible. It is basic legal doctrine that when two people sign a contract under which one person agrees to pay money in return for the other providing a particular service, if the second party fails to provide the service while the first party continues to pay as agreed, it is generally accepted that the first party has the right to void the contract with no penalty. Talk to a Veeto expert about your Regus contract now, Talk to a Veeto Expert Now about your Regus contract. conform to the description of the services set out in the offers for “Regus Connectivity Services” and in the RegusNet IT connectivity Order. Thank you so much for getting this process set up for me. We took the Regus office in India - Chennai - Citi Center and as most of you have sited, the automatic renewal of the contract or binding clause, of you cannot give notice to terminate was not discussed through out the intial discussions. Who has the spare mental bandwidth to keep track of this? Make sure the demand letter gives Regus a finite period to resolve the matter before which you move to next steps. I went to the front and told [the receptionist] and [the office manager] that I couldn’t believe that this woman had been waiting there so long and nobody had told me. Not most people, I bet. You may want to hire an attorney to … But first, let me highlight a few of the more offensive parts of Regus's actual lease agreement that, based on my reading of several of the Regus reviews referenced above, many people seem to have an issue with. Based on the typical set of facts in Veeto cases, public lawsuits make companies like Regus look really bad in public (for example, after reading this, are you more sympathetic to Regus or Hannah?). She didn’t knock on the door or call me. Have an attorney review it and discuss your options, including possibly negotiating a buy-out of the remainder of the lease term or relocation to another Regus space. Still, in this one case alone, her $43 Veeto membership returned her $4,459 in avoided Regus early termination fees, lease payments, and forfeited deposit fees paid to Regus. Regus May Let You Out of Your Contract If You Have Missed No Payments. This is bad for Regus for four reasons: Run a free Regus Contract Analysis with one of our Veeto Experts and see how you can leave Regus now. Useful. But when you hire your attorney to do this for you, what you typically will get in return for the billable rate you pay is simply advice: "watch out for this," "this is what this means," etc. (Although, not as good that time MTV Punk'd host Ashton Kutcher punked Justin Timberlake on MTV and made him cry.). The amount is different because I signed up for parking at the building which is $65. Otherwise, let's geek out for a moment on jurisprudence. Hi, I have a contract with Regus for a 12 month virtual office, the agreement ends of 31/08/2011, however they have a clause in the contract which stats - Duration: This agreement lasts for the period stated in it and then will be extended automatically for successive periods equal to the current term but no less than three months until bought to an end by the Client or by Regus. Remember that part about business owners depending on their businesses for income? Yesterday, June 8th, I received a third invoice for 468.58. Speaking of confidentiality, section 2.9 is a real gem. Impossible to contact Customer Service. "I wanted to thank you for your help. Both parties to a contract, it seems, should have a fair shot at either getting what they were promised or getting commensurate compensation when they do not get what they were promised. I also am wondering when the late fees are added and how often are they added? And that is OK. If you need anything in the meantime, please do not hesitate to reach out to me at sandra.melody@regus.com. My question is, if I paid Regus 693.28 for May, June, and a service retainer, do I owe them now for the month of July?
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