Hopp business franchise

What exactly is the Hopp franchise about?

Hopp was initially founded in Reykjavík back in 2019, to show locals there that there are better ways of moving around their city besides using a car. After enormous success in Reykjavík, we noticed that there are many other smaller cities where electric scooter sharing services could be extremely useful, but are not available, because the bigger players are not interested in them. Therefore we set up our services as a franchise, to enable local entrepreneurs to set up and operate a successful local shared mobility business, starting with scooters and then expanding to cars and taxis.

What are the locations, in which countries?

We have over sixty locations in 13 countries. We are operating in Sweden, Denmark, Finland, Poland, Germany, Spain, Budapest, Bahrain and the Dominican Republic among others.

What needs to be done to become a franchisee?

The first step is to visit our franchising page and submit a questionnaire there. We try to keep our franchising solution as accessible as possible, but we work personally with all of our leads to understand if the market they are interested in is feasible.

What is the required financial investment?

It depends significantly on the size of the city and number of scooters, but can range from 20.000 EUR all the way to 500.000 EUR.

What are the franchise fees?

We handle all centralized operations for the franchsiee, meaning that they incur very limited central overhead. A part of our franchising solution is payment processing, which means a franchising fee of 18% all inclusive.

What are the steps to open a franchise?

As a franchisee, you are responsible for all the local operations, meaning you need to purchase the scooters, import them, set up a warehouse, talk to the local government, hire staff, procure management vehicles, etc. We are of course there with the franchisee for every step of the way, and have helped over 60 franchisees across the globe with the same tasks, so we can be very helpful with our experience.

How does the franchisor assist the franchisee at the beginning? Are there any training sessions, assistance in selecting a location, and implementation?

We help a lot before and during the startup phase. One of our core services is launching assistance, where one of our launching managers has weekly meetings with the franchsiee prior to launching, and then attends and helps manage the franchisee's launch in person.

What are the expected potential revenues?

It varies significantly based on number of scooters and the parameters of the location. But our franchsiees are usually operationally cash-positive from day one and pay off the initial scooter investment in under 20 months.

Is there a special platform for users?

What makes us special as a franchise is our focus on software, all of the user's interactions happen in our app - which can be found on the app store under the name "Hopp". 

What duties will the franchisee have?

The franchisee is responsible for everything that happens on-location and on the street. This is very varied and diverse, but generally it means maintaining the scooters, charging them, talking with the municipality, rebalancing, staffing, local marketing, etc.

What are the plans for the future?

We are on a trajectory of healthy growth that we first and foremost aim to maintain, additionally, we are working towards expanding our core services to customers to include car sharing and ride-hailing as well.

By Agnieszka Bąbik