7 Types of Shipping Franchises: Which One is Right for You?

Ready to get started in the shipping industry, but wondering which model is the best fit for your goals and budget? We’ve saved you some legwork with a list of several types of shipping franchises, and how each might look in terms of tactics and workflow.

Before choosing your Business Model, it’s good to have an idea of what Trading Model your franchise contracts might utilize with clients:

types of shipping franchises

Step One: Decide what Trading Model do you want your franchise to focus on:

Strategic: In a Strategic Model, your business will depend upon ongoing contracts with long-term customers. If your franchise is well-recognized, has a proven track record, and has established trust with its customers over time, you might benefit from the security of established, repeated clients.

Transactional: In a Transactional Model, your business comes from meeting specific, one-time needs for customers. For instance, When you use a courier to return a parcel to an online store, you’re a party in a transactional relationship. Each ‘transaction’ is arranged individually and may or may not result in repeat business. This gives you more freedom to adapt your workflow when needed.

Tactical: The Tactical Model is a blend of the Strategic and Transactional business models. Companies outsource to you on a long-term basis [Strategic], but individual contracts can be negotiated within that agreement over time [Transactional].


Step Two: Pick Your Business Model

Now that you know more about the Trade/Contract Model you might use, you can better gauge which business model is best for your franchise:

  1.   Home-Based Services Resellers

This model has its limitations in terms of physical expansion, but has the advantage of lower overheads and more flexibility. As long as you are skilled at working out profit margins, you will cope well with the opportunity to buy shipping services at trade price and resell them to meet your financial goals.

  1.   Print & Ship Centers

There are numerous high profile examples of this franchise model, which is a good clue to how successful it is! Your store will have a very clear physical presence as a franchise using this model stores and hires out its own equipment. Beware: since it’s a multifaceted model, you will “wear a number of hats”! And all your responsibilities and strategies will be centered around a strong corporate image, to which you must subscribe.

  1.   Packing Franchise

A scaled-down version of the Print & Ship Center, this model gives you a community-based, services-oriented store. You’ll be offering a full range of packing and printing options, together with related services that provide companies and individuals with off-site office assistance.

  1.   Self-Storage Franchise

Most of us at some point require extra space. This service is a more logistically simple franchise to run and can be expanded to include either strategic or transactional shipping.

  1. Warehouse Franchise

This model is similar to Self-Storage Model but much more work-intensive in terms of the range of products and equipment your company will house.

  1. Door-to-Door Courier / ‘Letterbox Marketing’ Franchises

This model offers the advantage of low overheads, high demand, and lower turnover than more industrial franchises. It’s very labor-intensive; but if you are prepared to put in the hours, this model can be both lucrative and manageable.

  1. Freight-Forwarding Franchise (NVOCCs)

Businesses need Export and Import Management/Transport and this a franchise opportunity on a large scale. It’s worth taking an in-depth look at the services included in Freight Franchises. Often they’re divided into smaller specialist franchises that you can tailor to your business goals (e.g. services such as consolidation/deconsolidation of goods).           

With so many different franchises out there, It can seem daunting to decide your next steps. But once you decide on your goals, and your preferred way of doing business, choosing your Trade Model and Business Model will come more naturally.

Still need help deciding from these types of shipping franchises? Contact our team to explore the possibilities!