The Ultimate Brick Franchising Guide

This text outlines the foundational steps for becoming a Brick franchising partner, focusing on the roles of market operators and network partners. The chapter starts by introducing the concept of Brick franchising, highlighting the opportunities for growth and innovation within the community. It explains the responsibilities of a Brick Network Partner, such as installing, managing, and maintaining power bank sharing stations across various venues like bars, restaurants, and malls. Key aspects covered include the importance of choosing the right venue, setting up and maintaining power bank stations, managing venue relationships, and analyzing customer behavior and pricing strategies.

Furthermore, the text delves into the financial aspects, such as initial investments, ongoing operating expenses, and revenue management for both market operators and network partners. It emphasizes the importance of financial planning and understanding the legal landscape, including contracts and agreements. The differences between the market operator and network partner models are clearly outlined, focusing on scale, exclusivity, support, and financial factors.

Finally, the chapter guides on building your business, emphasizing the importance of venue selection and relationship-building with venue owners and staff. It offers practical advice on how to establish and grow a Brick franchise successfully, highlighting strategies for success as either a market operator or network partner.

Chapter 1: Foundations of Brick Franchising: The Basics of being a Brick Partner

Welcome to the exciting world of Brick franchising! This chapter is your first step into a community that supports growth and innovation. Here, we'll explore the fundamental concepts of Brick franchising and introduce you to the two main roles you can choose from: the Market Operator and the Network Partner. Don't worry, we'll break everything down into simple terms, making it as straightforward as possible. By the end of this chapter, you'll have a clear understanding of each path and feel more confident about the journey ahead.

Being a Brick Partner means becoming a local representative of the company, and spearheading the collaborative relationships between the Brick and various venues, such as bars, restaurants, malls, and other public places, where the power bank stations are installed. As a Brick Partner, your role is multi-faceted and includes the installation, management, and maintenance of these power bank sharing stations, as well as managing the relationships with the venues that host them.

Powerbank Station Installation and Maintenance

The primary thing that all partners are responsible for is the installation and maintenance of the powerbank stations. As you are the local representative of Brick, you will be the first point of contact for any venue-related discussions. To maintain this you get access to a dashboard and information about customer-reported issues. Here are the three keys to good Brick maintenance.

1. Selecting good venues for your powerbank stations: Identifying strategic locations within the venues that are accessible and visible to the customers. This could involve negotiating space and securing agreements with venue owners.

2. Installation of your Brick stations: Setting up the power bank stations, which includes the physical setup and ensuring they are fully functional and easy to use.

3. Maintenance: Regular checks and maintenance to ensure the stations are clean, working correctly, and stocked with charged power banks. This includes troubleshooting any issues that arise.

Venue Relationship Management

To maintain the stations, you need a host for them as well. This is what we call “venues”. A venue can be a mall, a bar, a school, or even an airport. It can best pretty much any business or place where there is a particular need for portable chargers or just a lot of foot traffic in general. This follows a relationship between Brick and the hosting venue, something that our partners are responsible for. Here are three baseline factors that will be important for managing your venue relationships.

As you get started it is important to consider what your current network looks like. You will have a massive headstart if you can leverage contacts within commercial real estate or leisure entertainment. It is not a necessity, but a strong suit. 

1. Partnership Agreements: Working out the details of the partnership with venue owners. This might include the financial aspects, such as rental pricing or revenue sharing, and the initial duration of the agreement.

2. Support and Communication:  Maintaining open lines of communication with venue owners for any concerns or feedback regarding the power bank stations. Providing them with support and updates on usage statistics, maintenance schedules, and any promotional activities.

3. Brand Representation: Ensuring that the power bank stations and their usage represent the brand positively, maintaining high standards of service and user experience. Also ensuring that the venue understands the product.

Read this article to learn more about the venue onboarding process

Analyzing Customer Behavior and Price Setting

As a Brick partner, you will have access to powerful analytics tools built for the sole purpose of elevating your powerbank sharing business. In utilizing this and analytics, you can achieve great things. Here are four key elements that you will be analyzing as a Brick partner.

1. Pricing Strategy: Developing pricing strategies that are competitive yet profitable. This involves setting rental fees for the power banks, considering factors like average usage time, demand, and operating costs.

2. Usage Tracking: Monitoring the usage rates of power banks at different stations to understand customer behavior and adjust the number of power banks or the location of stations as needed.

3. Revenue Management: Keeping track of the revenue generated from each station and sharing profits with venue partners according to the agreed terms.

4. Customer Feedback: Gathering and analyzing customer feedback to improve the service and user experience.

Managing the Expansion and Growth of your Franchise

As a partner you can decide to take a more passive approach, building passive income and nurturing established relationships, rather than focusing on growth. However, if you are keen to build a larger revenue base and expand upon your network, you get the tools to do so. At Brick, we offer everything from financing options to discounted station prices when you have proven that you’re a partner that can be counted on. Here are four key things to mind when managing the expansion and growth of your powerbank sharing franchise.

1. Market Analysis: Continuously analyze the market for potential new locations and partners, considering factors such as foot traffic, customer demographics, and compatibility with the venue's clientele.

2. Scalability: Planning for the growth of the network, which might include adding more power bank stations within existing venues or expanding to new venues.

3. Promotional Activities: Collaborating with venue partners for promotional activities to increase user engagement and station usage.

Being a Brick partner requires a blend of business and interpersonal skills. It involves a commitment to maintaining high service standards, fostering positive relationships with venue partners, and continuously looking for opportunities to expand and improve the service network.

Learn more about growing your user base as a Brick partner

Read our guide to getting more venue sales

Chapter 2: Selecting Your Path: Evaluating the Market Operator and Network Partner Models

Now that you're familiar with the basics, it's time to dive a little deeper. In this chapter, we'll compare the roles of Market operators and Network partners side by side. You'll learn about the responsibilities, benefits, and challenges associated with each option. We aim to provide you with all the information you need to make a decision that feels right for you. Remember, there's no right or wrong choice, only what best aligns with your goals and lifestyle.

The differences between a Brick Market Operator and a Network Partner are based on scale, exclusivity, and support. Market Operators manage a larger network, typically starting with at least 100 stations, and have the opportunity for market exclusivity, which allows for significant business growth and prioritized support from Brick. Network Partners, on the other hand, start with a smaller scale, usually a minimum of 20 stations, lack market exclusivity, and have a more passive business model with basic support. Revenue, costs, and the level of assistance from Brick also differ between the two roles.

There are some fundamental differences between the two models.

Brick Network Partnership

A partnership centered around building a passive income portfolio independently.

Features

• Self-serve training & guides
• Ready-to-use sales templates
• Community access
• Onboarding + 5 hours of partner success

Key Financial factors

• Minimum first order: 20 stations
• Monthly operations fee: €5 / received station
• Revenue share: 70% retained

Brick Market Operator Partnership

Starting from €10 000/year, with growth targets unlocking a model optimized for saturation and expansion. Typically, as we work together with Market Operators, we are co-investing to achieve rapid growth.

Features

• Everything in Network Partnership
• Market exclusivity during expansion
• Full access to Partner Success Manager 
• Brick Premium access
• Achievable Milestones targets with Growth credit rewards
• Growth credits: Order stations for free

Key financial factors 

• Minimum first order: 100 stations
• Monthly operations fee: €5 / placed station
• Revenue share: 85% retained

Evaluating the partnerships – the correct fit for your franchising business

Responsibilities of Brick Partners

As the partnerships have two different orientations, one vying towards passive income, and the other towards market expansion and saturation, it is important to note that you will find yourself with varying degrees of responsibility depending on your partnership model.

As a Network Partner, you are responsible for fewer stations, and only have a very limited recurring cost, for the uptime of the station SIM, and customer support.

Market Operators at Brick are granted exclusive rights to operate the franchise in their region, granted that they achieve the milestones set together with their Partner Success Manager. This puts a lot greater responsibility on Market Operators to achieve their goals or lose their benefits.

Benefits of Brick Partners

In a similar fashion to the responsibilities, a Network Partner has few benefits other than the basics of earning money from station rentals through their stations. A Market Operator, however, receives several benefits designed to aid in their growth.

As a Market Operator, you get full access to a Partner Success Manager (PSM), dedicated to helping you with any questions you might have as well as guiding you in the right direction. Your PSM will give you weekly breakdowns, help you analyze your performance, provide benchmarks and guidance, and be your voice when speaking to the rest of the team about your needs and wants.

Financial Payoff for Brick Partners

The financials are very different for the two partner types. As a Network Partner at Brick, you retain 70% of the revenue and pay €5 per owned station as an operations fee – covering customer support and the SIM card cost of your station. As a Network Partner, you pay your stations based on a per-order price list.

As a Market Operator, you retain 85% of the revenue and pay €5 per placed station in operations fee. Your price list is cumulative as a Market Operator, meaning that you get better pricing the more your network grows. You also get access to financing options, and have the right to signed premium and advertising contracts. 

Read our specific breakdown of the difference between Market Operator partnerships and Network partnership

Chapter 3: Financial Framework: Capital Requirements and Funding Strategies for Market Operators and Network Partners

Let's talk money—but in a way that's not overwhelming. This chapter is about understanding the financial aspects of starting your Brick franchise. Here we'll cover the initial investment, ongoing costs, and the different funding options available to you. Whether you're leaning towards becoming a Market Operator or a Network Partner, we'll help you create a financial plan that's both realistic and attainable. Think of this as your guide to financial preparedness in the franchising world.

Initial Investment Breakdown for a Brick Franchise

First; let's dissect the initial investment required to get your Brick franchise off the ground. 

The Brick stations are priced in a so-called bracket model, the more you invest the better the price. 

Most of our Network Partners invest in 25 stations as a starting point, and the average initial station investment is €6125. The minimum investment, however, is €4580. We recommend that all Network  Partners should be able to put up the station costs for at least a full year, for the network to pick up speed and garner traction. We recommend that you put up at least €7500 to get the network started. Being unable to do so may put unnecessary financial strain and stress on you.

For our Market Operating partnership, we require a minimum of 100 stations, and a fixed fee of €10000, putting the minimum investment at €28500. The €10000 fixed fee covers our onboarding costs and partner success investments. This fee can be converted into credits at the end of the first year, assuming that you reach the growth targets set together with your partner success manager. We recommend that all market operators can put up at least €35000 as an initial investment, being unable to do so may put unnecessary financial strain and stress on you.

Ongoing Operating Expenses for a Brick Franchise

Running a Brick franchise involves varying degrees of operating expenses. We have partners who operate a large-scale business with staff, and others who do everything on their own. This affects your operations immensely, and Brick does not recommend any particular means of operations, as you will know your limits better than we do. Marketing expenses or custom designs for placements are strongly discouraged, especially before 100% of stations are placed, instead focus on expenses that scale with your income – such as revenue share. 

For Network Partners, your main operating expense to pay attention to will be the operations fee or the fixed fee. The operations fee will be invoiced yearly or monthly. As a Network Partner, your other costs will be dynamic, and as such not be a cost that you need to consider too much.

As a Market Operator you have a yearly fixed fee of €10000 but only pay operation fees based on stations that are placed, and as such already generating revenue. The yearly fixed fee can be converted to credits to purchase additional stations for Market Operators who reach their yearly targets.

Brick Franchising and Funding Options

Brick offers some funding options for our most ambitious partners, but we have no options for initial financing. We offer growth credits for Market Operators who reach their yearly milestone targets. Market Operators who have agreements with exciting venues are also offered leasing options. Exceptional Network Partners may also be offered leasing to help with the cash flow and growth of their network, but their responsible Success Manager provides this possibility.

Financial Planning and Management

Creating a sound financial plan is essential for the success of your franchise. We'll walk you through the process of developing a realistic budget, forecasting revenue and expenses, and setting financial goals. 

Brick powerbank sharing stations are a great investment for their low operating requirements and stable revenue stream. A single station can operate autonomously with little-to-no maintenance required for up to 36 months, and stations that remain in place grow steadily with 100% revenue per day year-over-year. Maintaining a great relationship with the venues is something that will increase your revenue and decrease your maintenance costs as well, as the venue may be willing to help with the more minuscule maintenance activities.

It is prudent to consider all scenarios and account for seasonality. While powerbank sharing stations are a revenue-generating asset, it can take time for any venue's local audience to adapt to and accept its existence.

Case Studies and Success Stories

To wrap up the chapter, we'll share inspiring success stories from Brick franchisees who have successfully navigated the financial challenges of franchising. These case studies will highlight different financial strategies and lessons learned, providing you with valuable insights and motivation.

By the end of this chapter, you'll have a clearer understanding of the financial commitments involved in starting and running a Brick franchise. With the right knowledge and planning, you can set the stage for a profitable and sustainable business. Let's embark on this financial journey together, ensuring that your franchising venture is built on a solid financial foundation.

Launching Brick in Scotland

Scotland is one of Brick’s earliest markets outside of Sweden. David, our main representative in the region, has been a key partner in developing the franchising model and has simultaneously shown great ambition in the expansion of his local network.

David values the independence of the partnership model, that he can generate passive income without needing a lot of technical expertise. His network has great revenue per station, meaning that he maximizes the revenue generated and minimizes the maintenance requirements.

Read the full case study of Brick in Scotland here

Launching Brick in Amsterdam

As the Netherlands is a fairly similar market to other successful Brick markets, we decided to make it a key focal point of Brick’s expansion in late 2023 and early 2024. Together with two key partners Brick got ready to launch in Amsterdam and Amersfoort.

Both partners had initial success with placements of their Brick stations, but struggled to gain traction among the end-users. Both partners quickly identified the main issue being the absence of the popular Dutch payment method iDeal. 

Brick HQ quickly implemented iDeal, and the number of users started growing quickly. Another success factor has been key locations within the tourist areas of Amsterdam, as many tourists may come from countries with different electrical plugs, walk the town for too long, or simply out for a bachelor party, all scenarios where a rentable charger becomes very handy.

Brick in the Netherlands is heavily featured in this article

Launching Brick in Finland

It took only a few weeks after Brick was launched in Finland for it to become one of the most lucrative powerbank rental markets in Europe, per station. The local partners did three key things: focused on venues that overlap with the user base at large, onboarded the venue staff, and placed the stations with great visibility inside the venue.

Read the full story of Brick in Finland

Learn more about financials and regulations for Brick franchises

Chapter 4: Legal Landscape: Understanding Contracts and Agreements for Market Operators and Network Partners

From franchise agreements to licensing, we'll guide you through the key documents and terms you need to know. Our goal is to make this process as transparent and straightforward as possible, giving you the confidence to move forward with your franchising decision.

Key Components of the Brick Market Operator Agreement

Milestones

All Brick Market Operators set milestones together with their partner success manager. The milestones lay the foundation for growth credits and exclusivity, both of which require performance on the partner’s side to be active.

Exclusivity

Market exclusivity is stipulated as a reward for staying in line with the growth targets set for any given market. A partner holding exclusivity may recruit additional partners to work together with them, for a percentage of their earnings.

Growth credits

A reinvestment of the base fee paid by Market Operators when they reach their targets. The Market Operator agreement stipulates how to earn the credits, and how to use them.

Region

The importance of locality cannot be overstated when it comes to powerbank sharing. Many of the venues where the concept is the most popular need a local contact to help with maintenance and onboarding. The agreement clearly defines the area in which the market operator is responsible for operations, and gets exclusivity.

Brand and immaterial rights

All franchisees must use the Brick brand and may not mix it up with additional brands, even if the company name is different than the brand, the brand must be the only thing that is fronted. As a franchisee, you are granted the right to use the brand, software, and other immaterial rights, but that right can be forgone if abused.

Premium/business-to-business deals

Market Operators may sign premium deals, but the revenue share to Brick HQ remains the same as stipulated for rental revenues.

Non-compete clause

As a franchisee, you may not work with any other powerbank sharing company during or after the agreement with Brick.

Length of the agreement

The agreement runs yearly and can only be terminated by the franchisee.

Ending the agreement

The contract can only be terminated by the franchisee, or by default for any breach of the contract. Upon ending the agreement Brick will send a final invoice for the agreed-upon fees, and then terminate the business relationship.

Key components of the Network Partner Agreement

Operations fee

Network partners pay operations fees for all stations purchased, starting from when the stations arrive, i.e. the cost starts even though the stations may not be earning any money for the partner.

Revenue share

Network Partners' 30% revenue share is a flat amount that includes transfer fees, which are paid to Brick payment service partners.

Region

Network Partners are restricted to operating in a single region, as agreed upon during the initial calls with Brick.

Chapter 5: Building Your Business: Strategies for Success as a Market Operator or Network Partner

Welcome to the heart of your Brick journey—building your business. This chapter is designed to arm you with the strategies, insights, and practical steps needed to establish and grow your Brick franchise successfully. A critical component of this journey, especially for market operators and network partners alike, is the importance of venue selection and relationship-building. Let’s dive into why this aspect is crucial and how you can effectively approach it.

The Importance of Venue Selection

Choosing the right venue is about positioning your franchise for maximum success. The location of your Brick powerbank sharing stations franchise is directly correlated with your earnings. Not only do you want a station placement that generates a great deal of revenue, but you also want it to be a positive brand beacon and a placement that influences other venues to contact you for their Brick stations. 

Selecting a venue goes beyond mere real estate; it's another node in your network, and as this node gains popularity, so does the rest of the network. For all partners, the challenge is to identify venues that complement the existing network, enhancing brand consistency and synergy across locations.

Building Relationships with Venue Owners and the Staff

Establishing strong, positive relationships with venue owners, managers, and staff, is key. These partnerships can lead to beneficial arrangements, such as better deals, and of course an increase in trust. A venue owner, and staff, that trust you are more likely to recommend your Brick Stations. But how do you build these relationships effectively?

1. Research and Outreach: Start by identifying venues that are of interest to you, and that are likely to garner a good rental crowd. Read our article about what a good venue for Brick stations is to get a stronger understanding of what you’re looking for.

2. Mutual Benefits: Approach the venue with the mindset of creating a win-win situation. Be clear about what you can offer, whether it's increased foot traffic, revenue share, shared marketing efforts, or a unique product offering that complements their existing services. They are not doing you a favor, you’re both in it together – and that should be up-front. 

3. Professionalism and Persistence: First impressions count, so approach each interaction with professionalism. However, don't be discouraged by initial rejections. Persistence, coupled with a respectful understanding of their needs and concerns, can eventually turn a no into a yes. At Brick, we’ve had several venue owners come back to us years after our initial reach out, and turned ‘no’ to ‘yes’ several times after 

4. Building a Community Presence: Becoming an active member of the local community can significantly enhance your relationship with venue owners. Attend local events, join business associations, and contribute to community projects. This visibility not only builds your network but also establishes your franchise as a committed community player.

5. Ongoing Communication: Once you've secured a venue, the work doesn't stop there. Maintain regular communication with the venue owner, seeking feedback and offering support. This ongoing dialogue can lead to improved operations, collaborative opportunities, and a long-lasting partnership.

Dig deeper into Brick investment, strategy, and operations

Conclusion

In conclusion, this comprehensive guide has endeavored to provide you with a thorough understanding of what it takes to become a successful Brick franchising partner. Whether you choose the path of a market operator or a network partner, the foundation of your success lies in understanding the critical aspects of installation, management, and maintenance of power bank sharing stations, along with fostering strong relationships with venue owners and effectively managing financial and legal obligations.

As the author, I've aimed to equip you with the necessary tools and knowledge to navigate the intricacies of the Brick franchising model. Remember, the journey to building a successful franchise is continuous and requires commitment, strategic planning, and a deep understanding of your local market and community needs.

The essence of Brick franchising is not just in providing a service but in creating value for your customers, partners, and the community. By adhering to the principles and strategies outlined in this guide, you are not only setting up a business but also contributing to a sustainable, innovative, and customer-focused ecosystem.

I encourage you to approach this opportunity with enthusiasm, diligence, and a commitment to excellence. The path ahead is filled with potential for growth, innovation, and significant contributions to the evolving landscape of mobile power solutions. Embrace the challenges, celebrate your successes, and continually seek ways to improve and expand your franchise. Here's to your success as a Brick franchising partner.

Become a Brick Partner

Powerbank sharing with Brick holds promising prospects for your success! A Brick Representative is ready to connect with you when you are. Continue reading the essentials of a Brick partnership or submit an application