There is a growing demand for charging stations as the number of electric vehicles on the road increases. Opening a franchise for electric charging stations allows investors to get in on the ground floor of a rapidly growing market. This article will help you decide if a franchise for electric charging stations is correct for you by discussing the benefits, potential profits, and other relevant information.

What is the business model of electric vehicle charging stations?

Since EV charging stations are being placed in such a wide variety of sectors, the business model for each one is unique. In general, a commercial electric vehicle charging station can be either owner-run or third-party owned and operated.

The site host is responsible for maintaining the EV station infrastructure in the owner-operator model. This implies individuals are accountable for communicating with their power company, doing necessary maintenance, and footing the bill for the stations' operation.  

The site host does not have any responsibility for the EV charging stations in the third-party owned and operated model. In this setup, the third party is in control of the electric vehicle chargers and often takes a cut of the proceeds. However, the site host still enjoys the additional benefits of installing EV charging stations, such as drawing in a larger number of customers, employees, or tenants and having them spend more time there. In contrast to the owner-operator model, the host site will not be responsible for any of the costs connected with running the stations or determining prices. Charging-as-a-Service (CaaS) is the most well-known business model for charging stations that are owned and operated by a third party.

What is EV Charging as a service?

Service-Based Pricing is a method for companies to install EV charging stations without taking on any unnecessary risk. There are no hidden charges or recurring costs that businesses must pay for. Instead, the site host obtains a full EV charging solution, complete with installation and management software, and the chargers are owned and operated by a third party. As an added bonus, the host location can take advantage of EV charging stations without having to actually maintain them.

Is installing charging stations for EVs a worthwhile investment?

Charging stations for electric vehicles are a promising market segment. If you invest in an EV charging station franchise now, you will be ahead of the curve because electric car charging stations are a very new business.

There are other methods to make money off of installing charging stations for electric vehicles. In most charging station franchises, indirect revenue sources are more important than collecting fees. Fees enable the station franchise recover some of its expenses and generate more income.

There are a variety of factors to consider when deciding whether to implement or keep free charging sessions for businesses. Charging fees are generally a good idea because they cover the cost of electricity and encourage responsible behavior while charging. In the event that free EV chargers are provided, non-EV drivers and those who don't need a charge may park in them in search of better parking spots, EV drivers may charge for longer than necessary, and drivers may leave their cars parked at the charging station all day (especially if it is located at a place of business). The establishment of fees aids in guaranteeing that those in need of a charge receive one.

Subsidizing the charging of fees to customers, employees, or tenants is a middle ground that is chosen by some businesses.

It's worth noting that most research on the topic has indicated most EV drivers do anticipate paying to charge their vehicles. After all, motorists make their petroleum purchases at the pump.

Electric vehicle charging stations can be used for a variety of revenue streams.

l Free (no fee): As a courtesy to our customers, tenants, and staff, we provide free EV charging. Public chargers on the site result in financial gain for the company due to an increase in sales and customer dwell times as customers wait for their cars to charge. The workplace has the power to entice and retain top performers. Green branding opportunities and the opportunity to achieve sustainability goals are also available to the business.

l Cost Recovery: Costs associated with setup and maintenance are factored into the fees, and the owner-operator is safeguarded against any additional expenses. Typical pricing models base charges on either the number of kilowatt hours supplied or the number of charging sessions or total charging time.

l Profit: Pricing for charging an electric vehicle is designed to turn a profit.  Typical pricing models base charges on either the number of kilowatt hours supplied or the number of charging sessions or total charging time.

l Advertising Revenue: The sole source of revenue for the independent owner-operator is the sale of advertising space. Charging stations for electric vehicles are provided at no cost. While the driver of an electric vehicle charges their car, they will be able to view adverts on a giant screen next to them.

l Leasing Revenue: An electric vehicle charging station is installed on leased property owned by a third party. The third party will own and operate the EV chargers and charge fees to EV drivers.

l Revenue Sharing: The site owner compensates the outside party with a cut of the money collected by customers who spend more time shopping on the site.  

Types of EV Charging station franchise?

Level 2 and DC fast chargers are the two primary varieties of commercial EV charging stations. In a public charging station for electric vehicles, there are benefits and drawbacks to both types of chargers. Most consumers and hotel guests will benefit from using a level 2 charger. The range of a vehicle can be increased by 15–75 miles per hour when using a Level 2 charger. This charging rate is just right for most businesses, as it satisfies the needs of EV drivers while not being so rapid that customers lose interest in using the charging station. Because of the quickness, store visits last longer for customers. The ideal option for freestanding EV charging stations along major highways is a DC fast charging point. DC rapid chargers can replenish an electric vehicle's energy storage system by 80% in as little as 10 minutes. DC fast charging stations are preferred by EV drivers who want to quickly refuel and get back on the road.

DC rapid charging stations are more costly to install than Level 2 charging stations. DC fast chargers have higher power and power output needs than Level 2 chargers, necessitating more extensive electrical improvements and more strenuous electrical work.

How can you get your electric vehicle charging franchise off the ground?

You will need to partner with an EV charging firm that provides turnkey EV charging solutions if you want to start a charging station franchise for electric vehicles. The charging solution must include the EV charging stations, installation by qualified electricians, necessary permits, a well-thought-out design of the charging station infrastructure, and charger management software. Electric vehicle charging software is an integral component of a distributed charging infrastructure. A networked charging station for electric vehicles is linked to a larger charging network, typically over WiFi. Access to charging stations may be managed, rates can be adjusted, charging sessions can be analyzed, and maintenance can be scheduled all with the help of EV charging software.

The Pros of Starting a Charging Station Franchise

l Stable returns: Electric charging stations are in high demand but low supply, making them an excellent investment prospect.

l Eco-friendly:You may aid in the fight against climate change by providing a service that facilitates the rapid and easy recharging of electric vehicles.

l Competitive Edge: Charging stations will be in higher demand as the number of electric vehicles on the road rises. And if you get a franchise, you'll have a leg up on the competition in your area.

l Low Investment: Franchises typically have modest initial investment requirements and low ongoing maintenance costs.

Trends and Innovations in Electric Charging Stations for Franchisees in the Future

Are you an electric charging station franchise owner interested in staying current with industry developments? Stop right there! Electric charging stations have a promising future, and franchise owners would be well to keep up with several promising new trends and advancements in the industry. Rapid technological advancements are being made in the field of electric charging stations, such as faster charging times and more robust software management systems. In this post, we'll discuss some of the most important developments that franchisees should keep an eye on over the next few years.

Key Takeaways

Faster charging times and improved software management systems are just two examples of how electric charging stations are getting more potent and efficient.

Government mandates and consumer demand for electric vehicles are likely to considerably raise the need for electric charging stations in the future years.

Franchisees who fork over cash for electric charging stations now may see improved profits and a leg up on the competition in the future.

Trend #1: Increased Charging Speeds

Faster charging times for electric vehicles are a major development in the field of electric charging stations. It used to take hours, often even overnight, to fully charge an electric car. However, advancements in technology have made rapid recharging of electric vehicles a reality. Some of the newest electric vehicle charging stations, for instance, can fully recharge a battery in as little as thirty minutes. Good news for drivers who need a quick way to top off their batteries and get back on the road.

Investors in fast-charging stations for electric vehicles may see an uptick in foot traffic, as customers seek out these stations for their convenience. Potential benefits include enhanced profitability and a leg up on the competition.

Trend #2: Improved Software Management Systems

Franchise owners can take advantage of the growing sophistication of software management systems for electric charging stations, which is another major development in the sector. These systems can provide real-time information on how well and how often charging stations are used, giving owners the information they need to optimize their business.

For instance, some forms of property management software can notify landlords of impending maintenance difficulties. This can keep charging stations profitable for franchise owners by reducing the need for repairs.

The franchise owner who makes an investment in electric charging stations equipped with robust software management systems may see enhanced efficiency and profitability, as well as a more streamlined and trouble-free charging station operation.

Trend #3: Charging stations for electric vehicles are in high demand

Increasing customer demand is a key factor propelling the electric charging station market. The demand for charging stations is likely to skyrocket as more people make the move to electric automobiles. In fact, some professionals estimate that by 2025 there will be 10 million charging stations for electric vehicles around the world.

Government laws are pushing automakers to increase production of electric vehicles to meet this demand and cut emissions in the fight against climate change. Electric vehicles, which are both cleaner and cheaper to operate than their gasoline-powered counterparts, are also gaining popularity among consumers.

As the need for electric charging stations grows, franchise owners who make the initial investment could see increasing profits. Franchisees who go the extra mile by installing charge stations for electric vehicles can promote their establishments as progressive and environmentally conscious.

Conclusion

The outlook for EV charging stations is promising. Franchise owners should keep an eye out for several interesting new trends and advancements in the future years, including quicker charging speeds and advanced software management systems. Franchise owners that foresee the growing demand for electric vehicles and make investments in electric charging stations today may see improved revenue streams and a competitive advantage in the future. Don't wait any longer; begin looking into charging sites for electric vehicles right away.