Alset Auto Franchise Costs, Fees & Owner Salary (2023)

Alset Auto, founded in 2018 and headquartered in Portland, Oregon, is an innovative franchise dedicated to the development of electric vehicle (EV) charging infrastructure. In 2019, Alset Auto began franchising, offering entrepreneurs the opportunity to be part of a brand committed to facilitating the growth of clean and sustainable transportation solutions. This franchise stands out not only for its commitment to sustainability but also for its focus on catering to Tesla owners and enthusiasts.

Alset Auto's mission goes beyond providing charging infrastructure; it's about supporting the ever-growing community of electric vehicle owners, especially Tesla owners and enthusiasts. By offering convenient and accessible charging solutions tailored to their needs, Alset Auto plays a crucial role in advancing the adoption of electric vehicles, contributing to a cleaner and more eco-conscious future in the automotive industry.

Initial Franchise Fee

The initial franchise fee is $45,000, which is fully earned at the time the Franchise Agreement is signed and is non-refundable.

Royalty Fee

Franchisees pay a royalty fee of 8% of their weekly Gross Revenue throughout the term of the agreement.

Advertising Fee

Franchisees are required to contribute 1.5% of Gross Revenue to a national Brand Fund for advertising and marketing, potentially increasing to no more than 3% of Gross Revenue. Additionally, franchisees must spend a minimum of $3,000 per month or 5% of Gross Revenue, whichever is greater, on local marketing and advertising.

Technology Fee

This fee can be up to $190 weekly and covers new or improved technology systems for the franchised business, including items like assigned phone numbers, email addresses, and operational platforms.

The training offered by the franchisor, Alset Auto, includes a variety of programs as outlined in their FDD document:

1. Initial Management Training Program: Conducted at the franchisor's headquarters or an affiliate-owned outlet, it's mandatory for franchise opening and covers up to three individuals from the franchisee's side. Franchisees are responsible for all attendees' expenses.
2. Additional Training: The franchisor may offer mandatory or optional additional training programs, including ongoing training and annual meetings. Franchisees are responsible for related expenses.
3. On-Site Remedial Training: Provided upon request or as deemed necessary by the franchisor, it includes on-site training and assistance at the franchise location, with the franchisee covering associated costs.
4. Counseling and Assistance: The franchisor offers consultation and assistance in various operational aspects, generally at no charge unless it involves on-site assistance.
5. Employee Training Standards: Franchisees are expected to employ individuals trained in accordance with the franchisor's standards, ensuring brand reputation and operational quality.

Franchisees are allocated a specific territory for operation, but it is not exclusive. Franchisees may face competition from other franchisees, franchisor-owned outlets, or other distribution channels controlled by the franchisor.

The franchisor also reserves the right to offer products and services through alternative channels within the franchisee's territory. The territorial rights are contingent upon meeting certain performance standards, with the risk of losing exclusivity or facing territory reduction for non-compliance.

Alset Auto requires active management of the franchise. While franchise owners do not have to supervise the outlet personally, they must appoint a qualified general manager who completes the required training and devotes full-time to the business. Therefore, the franchise cannot be run as a purely passive investment.