What is a charging station franchise and why it may not be the right choice

Franchising charging stations presents itself as a theoretically available option for those wishing to enter the electric mobility market. The basic idea is to replicate an established business model, where a company (the franchisor) grants independent entrepreneurs (the franchisees) a license to operate charging stations using its brand, technology, and support.

On paper, franchising is expected to simplify starting a business in a growing industry by providing a structured path and reducing uncertainty for the new entrepreneur. It envisions a comprehensive package that includes supply of columns, assistance in installation, operational training and predefined marketing strategies.

Despite its apparent attractiveness, it is important to note that franchising charging stations is not a widely used or particularly frequent formula in the current electric mobility landscape. Although there are some entities that offer this model, they represent a minority compared to other modes of market entry.

The reason for this low uptake lies in the very nature of the industry and the peculiarities of the charging station business, which are ill-suited to the rigidities and costs typical of traditional franchising.

What does it mean to franchise charging stations?

In a franchising model of charging stations, an entrepreneur, the franchisee, enters into a contract with a company, the franchisor, already operating in the industry. This contract grants the franchisee the right to:

• Use the franchisor's brand and logo for your own recharging business.
• Adopt the franchisor's business model and know-how, following its operational guidelines.
• Receive training and support from the franchisor in different areas, such as installation, management, and marketing.
• Access supplies of charging stations and technologies from the franchisor, often on preferential terms (but not always).

In exchange for these "benefits," the franchisee agrees to:

• Pay an initial entry fee to the franchisor for joining the network.
• Pay periodic royalties (usually a percentage of revenue) to the franchisor for use of the brand and ongoing support.
• Comply with operational and business directives imposed by the franchisor, limiting one's decision-making autonomy.
• Incur any additional costs for centralized marketing or specific services offered by the franchisor.

The reasons for the low uptake of column franchising

Despite the image of a simplified path, franchising of charging stations encounters several critical issues that limit its spread and effective convenience for many entrepreneurs:

• High overall costs: adding up the entry fee, royalties, investment costs for columns (which are often not lower in franchising), and operational constraints that can limit profitability, franchising risks becoming an onerous and uncompetitive model compared to more flexible alternatives.
• Lack of flexibility and customization: the franchise model is inherently standardized and disinclined to customization. In the pillar industry, where needs can vary greatly by location, target customers, and business strategies, this rigidity can be a significant limitation on the ability to adapt to the market and maximize profits.
• Risk of dependence and lack of innovation: relying completely on the franchisor for technology, supplies, and strategies can make the franchisee dependent and unresponsive to market changes. Innovation in the charging industry is rapid, and an overly rigid franchise model could hinder the adoption of new technologies and the ability to remain competitive over time.
• Unguaranteed and shared profitability: even in the case of success, a significant portion of the revenue is transferred to the franchisor in the form of royalties, reducing the net profit for the franchisee. In addition, the success of franchising depends to a large extent on the strength and effectiveness of the franchisor, which is not always guaranteed.

Powy: the smart alternative for an autonomous and profitable charging business

Faced with the limitations and uncertainties of franchising, Powy offers itself as a concrete and more advantageous alternative for those who wish to invest in the electric vehicle charging industry. Powy does not offer a "franchise," but a strategic partnership based on flexibility, autonomy, and cutting-edge technology.

Powy positions itself as a provider of comprehensive electric vehicle charging solutions, providing a range of services and products that enable entrepreneurs to independently and profitably establish and manage their own charging network.

The advantages of Powy over traditional franchising are obvious:

• Partnership and ongoing collaboration: with Powy, you build your business together with us. You are not a franchisee, but a partner with whom we work side by side to develop your charging network. Our collaboration extends to all aspects of the business, from technology selection to operational management, to build a business that perfectly meets your needs and the market.
• Advanced technology and customizable solutions: Powy gives you access to a range of high-quality charging stations and a modular software platform. Together, we choose the right solutions to maximize the effectiveness of your charging network and customize the offering to best meet your customers' needs.
• Ongoing support and advice: Unlike franchising, Powy does not impose a predefined package on you, but provides ongoing advice and support. We work together to choose the best technology, manage installation, optimize maintenance, and define strategies to ensure the profitability and growth of your business.
• Profit sharing and cost control: With Powy, profits are shared between us and the partner, but without the high entry fees or royalties typical of franchising. With a transparent cost structure, together we optimize earnings and collaborate to grow the business faster and more efficiently.

Powy is not a franchise, but a partner in your success. It offers the freedom of an independent actor combined with the power of advanced technology and top-notch support.

If you are considering entering the electric vehicle charging market, carefully consider the limitations of franchising and discover the benefits of Powy Choosing a more flexible and autonomous model could be the key to a truly profitable and sustainable charging business in the long run. Click here to find out more.

About Powy

Powy is a company that owns, develops and operates Italy's leading independent network of public charging infrastructure for electric vehicles, with a growing presence in Spain as well.

Founded in Turin, Italy in 2018, Powy is at the center of the transition to more sustainable mobility, offering an innovative charging infrastructure that uses only 100 percent renewable energy.

Powy 's network includes quick, fast, and ultra-fast charging solutions strategically placed in public and private parking lots, supermarkets, shopping malls, and transportation hubs to ensure maximum convenience and accessibility for EV drivers. Each station is equipped with advanced technologies to provide a reliable and efficient charging experience.

Learn more: wpowy.energy