They are not a franchise. The shops are independent, but they don't charge Pedego shop owners for anything except the bicycles. Of course dealers have to pay their local overhead expenses.
https://www.pedegoelectricbikes.com/own-a-store/
https://www.pedegoelectricbikes.com...second-careers-as-electric-bike-store-owners/
Actually, that's a faster way to grow than charging high franchising fees.
They are a franchise in everything except some specific contract language. Under Illinois Franchise law they would technically be considered a franchise, excluding the fact they do not specifically show charging a separate royalty fee. Their marketing, and requirements for their dealers, their website requirements (dealers cannot have their own), their requirement of stocking 80% Pedego ebikes (versus others), all is typical franchise stuff. Store logos and colors, providing store fixtures, POS, signage, accessories, mandatory HQ meeting, etc., the whole 9 yards is typical franchise. Their prices reflect what amounts to easily a 10% franchise fee, when compared to other ebike OEM's of similar product and component level. I researched them and vetted them like I do every other brand. Their prices are rather high for what you get as a buyer, and their warranties or service support appears no better than what a good ebike OEM would provide, though service to the consumer could easily vary from dealer to dealer even in a franchise like situation. They work well to make sure dealers locate stores on heavily traveled bike paths, encouraging them to do rentals (i.e. means they have to stock more ebikes for renting) and locate in good higher traffic population centers, so they provide franchise like coaching and training. (nothing wrong with that). Any good business person running an LBD can figure that one out. However, if they are 'popular', I don't see it here at all in the midwest. It'll be interesting to see how their dealers fare post the 25% tariff. With so little diversity of brands, and no avenue to source from other OEM's who wont face the increases, it could be interesting times for them. (and yes I do know of brands who will not be raising their prices having received communications from them already). Pedego's marketing to boomers is spot on, so if they are popular in some geographies, its largely due to that marketing and the typical franchise methods they employ for consistency among dealers. Though they do allow independents to carry their product, albeit without the benefit of buying at as low of a price as the ones that are exclusive Pedego dealers. The only thing that makes them get around the whole franchise thing, and claim of not being one, is that their 'fee' is simply buried in their pricing. To give their dealers a decent margin for the bike industry, the consumer is paying roughly a 20 to 25% premium versus other comparable brands. Their beefy looking bikes are indeed heavy, but that could play well with their target audience, who likely remember large bulky bikes from their youth. Fat cushy seats, thicker tires, many colors (not just black or white) a lot of those little nuances play well with their target audience. Their target audience also has more disposable income than other audiences, so the price premium isn't likely to affect their target consumer as much. Also the consistency of marketing, and making the dealers adhere to good solid retail principals, ensures every consumer gets roughly the same level of good service across their dealerships. Just like a McDonald's folks. Their target audience grew up with that level of consistency. Consistency of product and service sells. (something generally lacking in the bike industry with so many independent dealers). Not hard to figure out why they are doing so well. You have to give them credit. Other brands would do well to emulate them. Its early in the ebike game though, so we will see how others plan to catch up to their marketing.
Nothing better than a great e-bike. 
