With a ban on the sale of petrol and diesel vehicles from 2035, the UK government is driving down a somewhat bumpy road to decarbonisation. Not all consumers have been eager to follow in the footsteps, with many adamant they’ll continue to use fossil fuel vehicles past 2035. What is franchising and how is it helping to make the electric vehicle market more accessible and attractive to those who will eventually need to switch?
What is Franchising?
Franchising is one of several ways of owning a business. It is also a method of business expansion. Franchising is where the brand and trademarks of a business are licensed to a third party for them to use in their own exclusive area. But franchising doesn’t just give you a brand name, it gives you a full business. Often referred to as a business in a box franchise opportunities provide you with the recipe to running a successful business. Usually you don’t need any previous business ownership experience, making franchising a fantastic first choice for the avid entrepreneur.
To be successful, you’ve got to love what you do. But when it comes to business ownership many are put off by either costs, or not knowing where to start. Franchising covers both of these. Firstly the sector is very well supported by banks in the UK, who can generally lend up to 70% of the franchise investment. Not to mention there is a government backed start-up loan up to £25K available. Secondly, franchisors usually provide full training and ongoing support either as part of the franchise fee or as a monthly ongoing fee.
The Problems Facing the EV Market
Whilst the UK is slowly getting the hang of the transition to driving electric vehicles, many are reluctant to do so. The two biggest problems are battery life and accessibility to charging. But while the initial purchase price of EV vehicles is generally higher than that of gas cars, according to British Gas, owning an EV is cheaper in the long run. A 200 mile range on EV will cost £15, while a similar range with fossil fuel will cost upwards of £50. Another issue facing the EV market is the slowdown on car production. It has widely been in the news of battery plants closing down, losing funding, etcetera, and with these points in mind, the UK is at risk of veering off course from the 2035 target.
Range anxiety and lack of sufficient charging points are two of the main concerns consumers have. And while range is generally improving with advances in battery technology, the scales are outbalanced by the fact that batteries degrade over time and will eventually need replacing as the most expensive component in the vehicle. Given that within a few years of heavy usage and repeated charging cycles an electric car could be worth only as little as 10% of its initial purchase value, making the move for many proves a difficult investment. But some things don’t change. It’s common for gas car owners too, to sell a vehicle they may feel is close to losing its value significantly, either due a major service or is suspected of being close to failing, and cut their losses. In a similar manner the used EV car market can thrive. EV owners can purchase a vehicle and sell it within a few years, switching to a newer model. Second hand buyers take the fall, of having to replace the battery sooner than they would have buying from new.
Whilst charging points are slowing popping up at UK petrol stations, not everyone is able to get a charging point installed at their home. Physical limitations apply in that parking spaces may either be too far from the house, garage or even within range, cables cannot be trailed across pavement due to public safety risks. It is also between landlords and tenants as to two pays for the installation at a rented property.
The EV sector may be booming and full of potential, but it still has a long way to go.
How is Franchising Making EV Electric Vehicles More Accessible?
The franchising sector is helping keep the UK on track to meet the government’s 2035 targets. It is also helping the public by making EVs more accessible. In the UK there are now a generous handful of franchised businesses working within the automotive sector to help make EV ownership more accessible. Autos aside, many of these businesses utilise additional income streams by further promoting green energy. For example, Mr Charger franchisees enjoy multiple revenue streams installing energy storage solutions for both domestic and commercial clients. Mr Electric – another well known electrical and charging point installation franchise – contributes to more than 500 charging points installed across the UK each month. With more and more franchisees coming on board with these well known brands, the UK is driving closer to greener highways.
It’s not just better access to EV charging points that is making the future more accessible. Driving instructor franchises are too making the switch to electric. Getting people comfortable behind the wheel of an EV, electric cars do not have conventional gears like petrol and diesel cars. Driving a car with only 2 pedals isn’t quite as straightforward if you’ve learnt using a car with 3. Bridging the gap between gas and electric, EV driving instructor franchises are in high demand, for both existing drivers and new.
Should You Invest in an Automotive Franchise?
There are many benefits of owning an automotive franchise. There are also many different types of auto franchises too. Are you interested in running a premises based workshop, detailing or repair business? Or are you looking for a van based, owner operated franchise? One thing mutual whatever business you choose, demand for vehicle related services won’t be going anywhere any time soon. The sector is calling out for more involvement with electric vehicles, from experience in repairing the advanced technology to fitting of charging stations both at home and businesses like petrol stations – who will eventually switch to an all-electric setup to maintain and maximise their profits. Gradually petrol and diesel filling stations will decline as garages move to support EVs and their own business stability which will too encourage drivers to also move to EV vehicles.
Should you invest in an automotive franchise? If you’re passionate about vehicles and have interest in keeping up with a fast paced sector, one which is in constant demand, you don’t need to look any further than franchising. From car detailing, mobile workshops and EV charging franchises, there are many opportunities to explore. Many of which require less than £25K personal investment. As with any business, you can later sell it – often for more than you initially paid. Unlike employment, your hard work doesn’t go unrewarded and you reap what you sow.
If you’re looking to get into business ownership in a sector that is seeing constant demand, why not consider one working with cars? Discover a world of franchises at Franchise Planet.
From mobile mechanics to EV charging point installation, franchising is where a business licenses out their brand, trademarks and system of operation to a third party. Franchising isn’t employment, it is business ownership. While you’re using the brand and methods of an established business, in return you’re getting full training, support and a “business in a box”. The business is still very much yours, you can later sell it, but for many, franchising is a great first step into business ownership they haven’t looked back from.
An EV franchise is any business which works mostly with EV vehicles, helping to drive a sustainable future. The most popular two types of EV franchises are charging point installation franchises like Mr Electric and Mr Charger, and EV driving tuition businesses. Demand continues for mobile mechanics, workshops and detailing, but many of these conventional businesses are struggling to keep up with the shift to EV. This is why there is soaring demand for EV professionals, and with franchising you get full training and support. So much so, you don’t necessarily need any past electrical experience.