Here at Point Franchise, we have a number of courier and delivery franchises on our books. In this article, we look at some of the best courier businesses currently looking for new franchisees to help them expand to new territories. We’ll also explore the industry in more detail and analyse why you should consider getting involved.
In our modern economy, businesses need access to a one-day courier service that isn't going to let them or their customers down. With the growth of next-day delivery companies and increasingly impatient customers, there's a lot of money to be made in the courier and delivery industry. Here, we take a look at some of the top courier franchises.
The courier franchise industry in the UK
With more and more individuals and businesses ordering products online, the courier and delivery industry is booming. In fact, 3.65 billion packages were delivered across the UK in 2018; 400 million more parcels than the year before. Because of this, delivery sales increased by 12 percent, amounting to £12.6 billion – and they’re forecasted to rise even more in the years to come.
The UK is home to some of the world’s most established courier businesses, such as DPD, DHL, TNT and Parcelforce. This means that any company hoping to make it in the industry must offer a high-quality service that distinguishes it from its competitors.
The good news for prospective franchisees is that franchises help business owners really make the most of this competitive industry. They offer entrepreneurs the equipment, expertise and support required to succeed. While setting up an independent courier business start-up could be a struggle, partnering with an established franchise gives prospective entrepreneurs a much higher chance of turning a significant profit.
Advantages of starting a courier business
- You’ll be working in an industry that is thriving – You only need to take a look at some of the statistics we’ve already highlighted to see that there is scope to start a very profitable business in this sector.
- You can benefit from low start-up costs – If you’re starting an independent business, you don’t necessarily need to rent business premises - all you’ll need is a vehicle. Similarly, many franchises allow you to operate from home, minimising your expenses.
- It’s an industry that lends itself to repeat custom – In other words, once a business has discovered you and knows that you offer reliable and affordable services, it will probably continue to be one of your clients for months or years to come.
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The best courier services in the franchise sector
If you're looking to join a thriving courier and delivery franchise, you’ve got several options to choose from. Each boasts a distinct set of advantages and will suit different types of franchisees. Let’s look at five of the most popular investment opportunities.
1. World Options
About the business: As the name suggests, World Options offers global courier services aimed at commercial customers. Meeting the remarkable demand generated by the online shopping industry, it provides retailers and other businesses with a cost-effective and hassle-free service that saves them time and money. World Options uses an innovative digital portal to provide customers with easy access to the service and give them more time to focus on their business.
Becoming a franchisee: As a World Options franchisee, you can balance your work and personal life while turning a substantial profit. The courier franchise is seeking out individuals who are ambitious, passionate about the World Options project and committed to growing their business by working closely with the franchisor.
The investment: A World Options franchise costs around £30,000 +VAT. This provides you with access to the entire franchise package and ongoing support from the franchisor’s dedicated management team. Because you’ll join a network of over 70 franchisees, you’ll be part of a large-scale team that you can approach for advice and extra support.
2. Post & Packing
About the business: Post & Packing focuses its operations on business customers. It provides them with a range of services, including archiving, PO box rental, parcel delivery and international services. Established in 2012, the business has gone from strength to strength, and its UK network now encompasses around 10 franchise units.
Becoming a franchisee: Unlike other franchises on this list, Post & Packing operates out of physical, brick and mortar stores, ensuring they receive both passing trade and targeted custom. While you set up your store, the Post & Packing franchisor offers a good deal of guidance and support.
The investment: The initial cost of a Post & Packing franchise unit is estimated to be around £25,000. However, additional working capital will be required to see the business through its early loss-making period. Approximately 70 percent of the initial investment can be borrowed from a major lender, but the remaining 30 percent must be in the form of personal assets.
Did you know? 3.65 billion packages were delivered across the UK in 2018; 400 million more parcels than the year before
About the business: InXpress is the go-to business for your international shipping needs and has partnerships with world-famous names like DHL, TNT and UKMail. As one of the world’s largest parcel delivery franchises, it has the experience and expertise to help grow new franchise units in a variety of international markets. Its UK network now consists of around 80 franchisees, but there are still plenty of opportunities for savvy entrepreneurs.
Becoming a franchisee: The company is looking for individuals who are sales-orientated, business-minded and excellent communicators. All franchisees must be committed to the InXpress brand and understand that the business model should be followed to the letter.
The investment: If you’re considering an InXpress franchise, you can expect to make a total investment of £30,000. Working capital of approximately £15,000 will also be necessary to get your business on its feet. As the franchise can be run from home, business premises are not required, which reduces your overheads.
In return for your investment, you can access start-up and refresher courses online to boost your knowledge and expertise, while a dedicated business coach will aid your development.
This solid support network has enabled InXpress to be a British Franchise Association-HSBC Brand Innovation Award winner and has led franchisees to see a return on investment just 18 months after the launch of their unit.
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4. Speedy Freight
About the business: Speedy Freight advertises itself as the UK's leading same-day courier service. It offers a unique service that sees packages picked up within an hour of an order being made, and then delivered within 24 hours. This ensures that customers are happy and the business is able to grow. Using every type of transport conceivable – from scooters to freight trucks, planes and boats – this courier franchise makes sure its customers' deliveries get where they need to be as quickly as possible.
Becoming a franchisee: Franchisees need to be able to commit to growing their business over a sustained period and demonstrate good managerial skills. They’ll also need to be dedicated to the business’ values and providing “speedy” service to each and every customer.
The investment: A Speedy Freight franchise unit requires an initial investment of approximately £40,000. As with other franchises, you may be able to borrow up to 70 percent of this figure from an official lender.
5. Diamond Logistics
About the business: Last but not least, Diamond Logistics boasts more than 25 years of industry experience and has won several big prizes in recent years. For example, in 2016, it was placed in the Virgin Fast Track 100 and, in 2017, it made it into the Financial Times’ list of Europe's top 1,000 fastest growing companies. Diamond Logistics aims to provide customers with a one-stop logistics service that incorporates same-day, overnight, international and fulfilment services into a single business model.
Becoming a franchisee: Diamond Logistics can be started as an independent franchised business or added onto an existing courier business. This is achieved through a modular, add-on system and companies only pay for the extras they require.
The investment: Because of Diamond Logistics’ add-on franchise model, investment costs can vary significantly. However, the minimum initial investment required for a basic franchise unit is £60,000.
Start your own courier franchise unit today
With consumers and business owners being accustomed to the instant gratification afforded them by technology, delivery businesses must be reliable, responsible and – most importantly – punctual in order to stay afloat. When starting your own courier franchise, remember that a company that delivers goods behind schedule or in bad condition risks damaging its reputation and, therefore, its profitability.
We’ve gone over some of the best courier service opportunities in the franchising world at the moment, but there are plenty of others out there. To see our complete list of delivery franchises, just click here.
Alice Tuffery, Point Franchise ©