Search for ways to enter the EV charging business in India, and you will see two terms used almost interchangeably: dealership and franchise. Many investors start by looking for an electric charging station franchise, assuming it works like a car or fuel dealership. In practice, the two models are quite different, and choosing the right one can decide whether your investment becomes a steady asset or a daily headache.
This article breaks down how each model works, who it suits, and what to check before you sign.
What Is an EV Charging Station Dealership?
In the traditional sense, a dealership means you buy products from a manufacturer and resell or deploy them under your own operation. Applied to EV charging, an electric charging station franchise often means you purchase chargers from a brand, install them at your site, and then run the station yourself.
That gives you a lot of control, but it also hands you a lot of responsibility:
- Finding and preparing the site
- Applying for the EV electricity connection and approvals
- Managing charger uptime, repairs and software updates
- Handling billing, payments and customer complaints
- Marketing the station so drivers actually find it
For someone with an electrical or operations background, this can work well. For most first-time investors, it is a steep learning curve.
What Is a Charging Station Franchise?
A charging station franchise connects you to an established network. Your station runs under the network’s brand, technology, software and app. Depending on the model, the company may also handle operations on your behalf.
The most investor-friendly version is FOCO, or Franchise-Owned, Company-Operated. You invest in the station, while the franchise partner selects and assesses the site, installs the chargers, connects them to its network and manages day-to-day operations, billing and maintenance. You receive settlements based on the station’s performance.
Dealership vs Franchise: A Quick Comparison
| Factor | EV Charging Station Dealership | Charging Station Franchise (FOCO) |
|---|---|---|
|
Who invests |
You | You |
|
Who operates |
You | The franchise partner |
| Site selection | Your responsibility |
Partner assesses and guides |
| Approvals and power connection |
Your responsibility |
Handled by partner |
|
Software and app |
You arrange it |
Included in the network |
|
Maintenance |
You manage vendors | Partner-managed |
| Driver visibility | You market the station |
Listed on the network app |
|
Best for |
Experienced operators |
Investors wanting a hands-off asset |
The Hidden Costs of Going It Alone
The charger is only one part of the total cost. A working charging station also needs civil work, an electrical connection, a transformer upgrade in many cases, charging management software and permits. With a dealership-style setup, you coordinate each of these separately and absorb the delays.
There is also the issue of visibility. A standalone charger that is not listed on a popular network app may sit idle even in a good location. Franchise networks solve this by putting your station in front of drivers who already use their app.
Why Many Investors Prefer the Franchise Route
Established EV charging companies have already solved the hard problems: certified hardware, interoperable software, a driver app, payment systems and maintenance teams. When you take a franchise, you plug into that system rather than building it yourself.
EarthtronEV, for example, runs a FOCO franchise model across Delhi-NCR, highway corridors and growing Tier 2 and Tier 3 cities. Its chargers are ARAI certified and support OCPP and OCPI protocols, and investment starts from around ₹10 lakh for a 40 kW DC charger.
Which Model Is Right for You?
Choose a dealership-style setup if you have technical experience, time to manage a station daily, and a site you already know well. Choose a franchise if you want to invest in EV infrastructure without running operations yourself.
For most investors, property owners, and business owners, the franchise route offers a faster, lower-risk entry into EV charging. To understand how a managed model works, from site selection to go-live, explore EarthtronEV’s charging station franchise programme.
Frequently Asked Questions (FAQs)
Whether you lean towards a dealership or a franchise, ask these questions first:
1. What is the total setup cost for an EV charging station?
The total setup cost depends on the charger type, charging capacity, number of charging points, electrical infrastructure, civil work, and site requirements. Request a detailed cost breakdown covering hardware, installation, electricity connection, transformer, and maintenance before finalising your investment.
2. Who pays for the electricity connection and transformer?
Responsibility for the electricity connection, transformer, and related infrastructure depends on the agreement between the site owner and the EV charging network operator. Clarify who will bear these costs, including electricity load approval, installation, and any required upgrades, before signing the agreement.
3. What are the revenue-sharing terms and settlement cycle?
Revenue-sharing terms depend on the commercial agreement with the charging network operator. Confirm the revenue split, applicable platform or service fees, electricity cost deductions, taxes, payment frequency, and settlement cycle. Ensure the agreement clearly defines how revenue is calculated and paid.
4. Who is responsible for uptime and repairs?
Responsibility for charger uptime, preventive maintenance, repairs, and replacement of faulty components should be defined in the service agreement. Check whether the operator provides remote monitoring, technical support, spare parts, and on-site repairs. Also, confirm the uptime commitment and response time for resolving faults.
5. Is the EV charging hardware certified and protocol-compliant?
Before installing an EV charging station, verify that the hardware meets applicable Indian safety and regulatory requirements. Check the relevant BIS certification, where applicable, electrical safety compliance, and compatibility with supported charging protocols. For network-connected chargers, confirm compatibility with the operator’s backend and applicable communication standards, such as OCPP, where required.
6. How many EV charging stations does the network already operate?
Ask the charging network operator for its current number of operational stations, installed charging points, and locations. Distinguish between operational stations, installed but inactive chargers, and planned installations. Request verifiable project references to assess the network’s operating experience and service coverage.
7. Are returns projected for your specific site, or quoted as a fixed promise?
EV charging station returns should be estimated using your site’s location, expected traffic, charger capacity, utilisation rate, electricity tariff, pricing, operating costs, and revenue-sharing terms. Treat projections as estimates rather than guaranteed returns. Ask for a site-specific financial assessment with clear assumptions, expected payback period, and potential risks before investing.