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This content is for informational purposes only and is not intended to provide financial advice.
With an increasing number of electric cars and, hence, increasing demand for EV charging, EV charging stations investment is on the rise. And the best way here is to purchase an electric vehicle charging station franchise.
What an EV charging station franchise is
An EV charging station franchise is an agreement between an EV charger manufacturer and a business to supply and install EV charging stations.
In general, one can buy an EV charging station as an ordinary purchase deal. However, if you run (or plan to start) an EV charging business and need many stations, an EVSE franchise is the better solution:
- First, the station price under the franchise is lower than a retail price and may be even lower than an average wholesale price on the market
- Second, you get a turn-key installation and sometimes even as much as servicing obligations from the franchisor or an extended warranty
- Third, depending on the exact terms, you may get access to extra benefits, which we will discuss later
So, with an EV charging station franchise, you save money on EVSE and time on looking for a reliable EV charger installer. Such a one-stop solution to benefit from!
What to consider when choosing an EV charging station franchise
When you select an EV charging station franchise, the key questions are as follows:
- How much is the minimum investment threshold?
- How much are their royalties?
- What extra benefits does a franchisor offer?
Of course, for you as a franchisee, the lower the threshold, the better. For example, some franchisors are willing to start with just £1,700. In other words, here, you can purchase and install just one or two charge points.
A franchisor can set royalties as a fixed sum or percentage of the franchisee’s profit or revenue. Typically, percentage royalties are more flexible and, thus, more beneficial. To clarify, here, the exact sum depends on your sales turnover. Thus, if you earn less, you pay less. And still make profits instead of suffering losses.
Extra benefits may include discounts on EV charging stations or their installation when purchasing large batches. However, one of the most valuable extra benefits is a spare capacity margin. In this case, you will have a technical possibility for expansion of your EV charging facilities in the future.
Taking together, this means that an EVSE franchise is, indeed, the best EV charging investment solution for those who act now and locally while looking into the future and thinking globally.
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