Alset Auto Franchise Costs, Fees & Profits (2024)

Established in 2018 and based in Portland, Oregon, Alset Auto has emerged as a pioneering network focused on enhancing the availability of charging stations for electric vehicles (EVs). With the commencement of its franchising model in 2019, Alset Auto has invited business-minded individuals to join a movement that prioritizes the expansion of eco-friendly transport options. Notably, the network garners attention for its dedication to serving the needs of Tesla aficionados and owners.

The vision of Alset Auto extends well beyond the mere provision of charging amenities. It aims to nurture the growing electric vehicle community, particularly those passionate about Tesla vehicles. By delivering convenient and tailor-made charging solutions, Alset Auto is pivotal in promoting the wider acceptance of electric vehicles, thereby driving forward a greener, more sustainable future in the realm of mobility.

Number of locations

Here’s how many franchised and company-owned Alset Auto there have been in the United States over the past few years.

Initial investment

Here’s what you can expect to spend to start a Alset Auto franchise.

Type of Expenditure	Amount
Initial Franchise Fee	$45,000
Your Training Expenses	$2,000 – $3,000
Premises Deposit	$6,000 – $9,500
Utilities Deposits	$0 – $500
Leasehold Improvements, Construction and/or Remodeling	$3,000 – $20,000
Furniture & Fixtures	$2,000 – $5,000
Exterior Signage	$1,000 – $3,000
Vehicle	$0 – $15,000
Business Licenses and Permits	$500 – $1,000
Computer Systems	$2,244 – $2,994
Initial Inventory to Begin Operating	$5,000 – $10,000
Equipment	$1,000 – $2,500
Office Equipment and Supplies	$500 – $1,000
Professional Fees	$1,000 – $3,000
Grand Opening Advertising Fee	$2,000
Supplemental Grand Opening Advertising Expenditures	$3,000 – $5,000
Marketing Platform Setup Fee	$5,000
Insurance	$1,500 – $3,000
Operating Expenses / Additional Funds – 3 months	$17,500 – $38,000
Total	$98,244 – $171,994

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Franchise fees & Royalties

Here are the main ongoing fees the franchisor will ask you to pay going forward to run the franchise.

Franchise Entry Fee

Upon entering into the Franchise Agreement, an upfront fee of $45,000 is required, which becomes non-refundable and is considered fully earned once the agreement is executed.

Ongoing Royalty Contributions

Franchise owners are obligated to remit a weekly royalty fee equivalent to 8% of their Gross Revenue for the duration of the contract.

Marketing and Advertising Contribution

Franchisees must allocate 1.5% of their Gross Revenue towards a collective Brand Fund dedicated to national advertising and promotional efforts, with the possibility of this contribution increasing to a maximum of 3% of Gross Revenue. In addition, a minimum investment of $3,000 monthly or 5% of Gross Revenue—whichever is higher—is mandated for local marketing initiatives.

Technology Support Fee

A weekly fee of up to $190 is required to support the enhancement and maintenance of technological services and infrastructure within the franchise. This includes, but is not limited to, provision and upkeep of designated phone numbers, email accounts, and essential business management systems.

Profits

Here’s how much revenue and profits you can expect to make with a Alset Auto franchise, as indicated by the franchisor.

How to apply

Opening a Alset Auto franchise involves several steps, designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a Alset Auto franchise.

1. Conduct Initial Research

• Familiarize yourself with the Alset Auto brand and its market position.
• Understand the electric vehicle (EV) industry and the role of charging infrastructure.

2. Review Financial Requirements

• Assess your financial readiness, considering the initial franchise fee, ongoing royalties, and other associated costs.
• Ensure access to sufficient capital for start-up expenses and operational cash flow.

3. Submit Franchise Application

• Complete the Alset Auto franchise application form, providing detailed personal and financial information.
• Await initial approval based on your application and qualifications.

4. Attend Discovery Day

• Participate in a Discovery Day at Alset Auto’s headquarters or a designated location to gain deeper insights into the franchise.
• Meet with the Alset Auto team to discuss franchise opportunities and expectations.

5. Review Franchise Disclosure Document (FDD)

• Carefully read the FDD, which outlines all the critical details about the franchise, including fees, obligations, and performance expectations.
• Consult with legal and financial advisors to understand the terms and conditions.

6. Secure a Location

• Identify a suitable location for your Alset Auto franchise, considering factors like market demand, accessibility, and competition.
• Obtain approval from Alset Auto for your selected site.

7. Sign Franchise Agreement

• Review and sign the Franchise Agreement, committing to the terms of operating an Alset Auto franchise.
• Pay the initial franchise fee to secure your franchise rights.

8. Complete Training Program

• Attend the mandatory training program provided by Alset Auto to learn about business operations, service standards, and technology use.
• Gain the necessary knowledge and skills to run your franchise successfully.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.