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Logistics franchise involves starting a logistics business under the label of an already exisiting logistics solutions provider. A logistics franchise business can undetake activities including warehousing, distribution, courier, delivery and trucking.
Logistics business franchises start with signing the contract with the franchisor, and getting packages to be shipped from your logistics facility. Every franchisor will have certain terms and conditions the franchisee must adhere to. There are also eligibility requirements to start a logistics business franchise.
How to start a logistics franchise?
Given below are steps you should follow to start a franchise:
- Decide on a location
Check out different areas and find PIN codes that doesn’t have delivery courier services. You can also try areas with only a few delivery services. Areas should also have a significant demand for last mile delivery services for it to be a profitable business opportunity.
- Select a franchisor
After identifying a location the next step is to select a franchisor. Research thoroughly on the internet about supply chain and logistics companies looking to expand their business through franchises. Read their terms and conditions and requirements to start a logistics business under their brand name.
- Apply for the franchise
To apply online for a logistics franchise, you must first visit their official website. The website will have a form you can fill to apply for the franchise. They will also ask certain documents to prove you identity and place of business.
- Know terms and conditions
After the company receives your application, the area manager will contact you to explain the details of the business. You can ask all your doubts and throughly get to know the terms and conditions.
Wait for receiving a response to your application. Once you receive an approval you can start the business as instructed by the area manager.
Requirements to start a franchise business
Every logistics company franchise needs upfront investment and certain material requirements to start. Here are some mandatory requirements that you would need to start a logistics courier franchise:
Any logistics franchise you sign up to join will require investing a sum of money that is mentioned by the franchisor in the contract. For setting up franchises in India this money can range from ₹50000 and ₹2,00,000.
Franchise in logistics would require a significant amount of space to stock shipments before they are delivered. Most logistics franchisors demand for a space between 400-600 sq.ft.
Like every business, you should have certain basic equipment like computers, internet connection, generator for uninterrupted power supply, vehicles for transportation, barcode scanners, printers, etc., to start a franchise in logistics.
There must be a minimum number of personnel you must hire as delivery executives and some people to fulfill delivery requests on the computer. The number of employees requested by Indian logistics franchisors are usually 10 and above.
Once you have the above requirements you will be trained on how to start the business by personnel from the franchisor’s company.
Logistics franchises in India
There are many logistics franchises in India that you can sign up for. Here are some of the top franchises:
Delhivery is known to provide logistics services to all the major e-Commerce and enterprise firms in India. They have branches in over 1400 cities and deliver to more than 13000 PIN codes. The investment for taking up the franchise of Delhivery is between ₹50000 to ₹2 Lakhs.
Ekart boasts 10 million shipments a month to over 3800 PIN codes. They are one of the most well known logistics firms for next day delivery services. The investment in eKart logistics franchise is ₹1 Lakh to ₹2 Lakh.
Amazon logistics delivery franchise offers entrepreneurs the opportunity to operate their own Amazon delivery service. According to Amazon, delivery opportunities occur throughout the day, and most of their facilities run 24*7 in multiple shifts. Therefore, this opportunity will require the owner of the business to be involved in daily operations.
Amazon logistics franchise looks at work history, experience, education, financial information etc., to determine the eligibility of the applicant. The investment cost in this franchise ranges from ₹1.5 Lakhs to ₹5 Lakhs.
Documents required for applying to logistics franchise
While documents asked by each logistics franchise will differ, here are some common documents that must be submitted:
- Proof of identity (PAN/Aadhaar Card)
- Business registration (Sole proprietorship/LLP/Pvt ltd)
- GST Registration
- Property address proof (electricity bill/ration card)
- Shop and property documents like rental agreement
- Shop and Establishment Registration from local authority
- Cancel cheque of applicant
How to apply for a logistics franchise?
Once you select a franchise, simply go to their website. They will have a form which you will have to fill out and submit to apply for the franchise. You will also have to submit the above-mentioned documents along with the application.
The franchisor will check your eligibility and then approve your application. The area manager will then contact you and explain all the details and terms and conditions of setting up a logistics franchise under the brand name you have selected.
Before buying into a franchise, you should carefully read the Franchise Disclosure Document. This explains franchise fees, expenses, performance expectations, and other key operating details. Read this document thoroughly to understand the contract you are signing. It would also explain the benefits of entering into an agreement and the resources that the franchisor would provide to operate the business.
Don’t forget to compare the benefits and costs associated with each logistics franchisor before entering into a legal agreement with any logistics company.
- What is courier franchise?
Franchise that invites businesses to deliver couriers from one place to another is a courier franchise.
- Is a logistics business franchise profitable?
Profitability of a logistics business franchise depends on the initial investment that must be put in by the franchisee according to the contract. It also depends on the percentage share of profit margin that you must give the franchisor.
Also read: What is transport cost and how to calculate it?