What is a 3PL Franchise?

When looking for a new franchising opportunity, it is important to join an industry that has growth potential. Valued at $1.3 trillion and continuing to grow, the logistics industry is prime for capitalization. Many potential new franchisees, especially those with past logistics experience, are looking to start a 3PL franchise in order to take advantage of this rapidly expanding industry.

3PL, which is an acronym for a “third-party logistics” business, refers to a company that can handle one or multiple supply chain management elements for their clients. Whether the needs are distribution, warehousing, or shipping and fulfillment, 3PL franchises are constantly in high demand by businesses, both large and small.

Logistics is an industry that everyone uses, whether they know it or not, and many supply chains are managed by third parties. It’s estimated that four out of every five Fortune 500 companies, and 96 of 100 Fortune 100 businesses use some form of third-party logistics businesses to handle their supply chain management.

While larger companies take advantage of 3PL supply chain management services, small-to-medium-sized businesses also need to utilize the services they provide, as a cost-saving, efficiency-improving measure. Many SMB companies also want to become more competitive in the global market and turn to a third-party logistics business to manage their supply chains.

There are many benefits to establishing a 3PL franchise, including relative ease of entry into the industry, a relatively endless supply of clients, the opportunity for multiple revenue streams, and support from franchisors. It can be a very rewarding franchise opportunity for someone with previous logistics experience.

Many small-to-medium-sized manufacturers, distributors, and retailers often need help with the management of their supply chain. They often lack the resources to do it themselves, and if they tried to handle it themselves, they wouldn’t have time to manage the business. That’s where a third-party logistics business comes in.

Shipping specifically, can be a tricky proposition for many small businesses. While much of the supply chain management process is quickly evolving with technology and innovation, shipping has been slower to adapt to the automation. More and more businesses are going to need a third-party logistics business to handle their shipping needs, especially as it relates to international shipping or identifying carriers.

Compared to other franchise opportunities, the all-in startup cost for a third-party logistics franchise business is a less expensive financial investment. At most, a 3PL franchise owner is looking at a cost of just over $150,000 to start their new opportunity. This covers all franchise expenses including training, marketing, computer hardware, legal fees and insurance. Compared to franchises like hotels or food and beverage, a third-party logistics business is one of the most affordable.

A 3PL franchise is a fantastic opportunity for supply chain industry professionals or military veterans with prior logistics experience. It is the perfect opportunity for individuals who are high-energy, committed, and focused on customer service and building relationships with potential clients.

Think a 3PL franchise is right for you and your future? Nexterus is looking for qualified logistics and supply chain professionals who are prepared to take the next step in their careers by establishing a third-party logistics business. Click here to get started!