• Third-Party Logistics Franchise
  • For franchise information call: 888-752-0441

FAQ

What is a BlueGrace Logistics franchise?

BlueGrace Logistics is a full-service, third-party logistics franchise that leverages extensive industry knowledge, best-in-class premium shipping rates, and industry-leading technology to handle transportation and shipping needs for small, medium, and enterprise businesses. We arrange freight that doesn’t fill a truckload into one full truck. We also arrange full-truckload, international, guaranteed and expedited shipments, as well as enterprise solutions and freight bill auditing.

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What is third-party logistics?

Within the $600 billion transportation and freight industry, there are two types of logistics companies: asset-based companies that own and operate trucks and warehouses, and non-asset-based logistics firms that arrange for, broker, or resell freight space and solutions. Non-asset-based firms like BlueGrace Logistics don’t own or operate trucks or warehouses but do sell freight services to small, medium, and enterprise level companies. 3PL is the fastest-growing segment of the shipping industry, and non-asset-based companies are one of the fastest-growing parts of 3PL.

Is this industry growing?

Third-party logistics companies currently own 25% of the $600 billion transportation industry. That number is expected to increase to nearly 33% percent by 2018. As the saying goes, “If you bought it, a truck brought it,” and as the population grows and the economy improves, the shipping industry also grows. That means opportunity for 3PL businesses.

What are the requirements for becoming a franchisee?

A successful BlueGrace Logistics franchise owner loves working with people, has the ability to market a business, can network with other business owners, and enjoys building and managing a high-performance sales team. Many BlueGrace Logistics franchisees have a background in freight, but this is not a requirement; some of our most successful owners had a prior consultative sales background. You must also meet our financial qualifications and be able to fund the startup of the business, which ranges from $39,500 to $181,250.

Do I have to have a shipping or freight background?

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We don’t require candidates to have a shipping or freight background, just solid consultative sales skills. Franchise owners who have experience with shipping will have a shorter learning curve and may open faster than those without. BlueGrace offers its franchise owners training on how the freight industry operates.

How much does a franchisee make?

We encourage prospective franchisees to do their due diligence before committing to any business venture. The research may be performed by examining Item 19 in our Franchise Disclosure Document, which provides historical data on financial performance. Other research should include discussions with existing BlueGrace franchisees on topics such as business operations, marketing, and finance. Profits and losses depend on the franchisee’s ability to manage the business, drive sales volume, and control operating costs.

What is the timeline for opening a franchise?

Those who have a shipping or freight background typically open their franchises before others. Most people get out of the gate within three to six months. For others, depending on the learning curve, it could take a year to 18 months. We provide ample training and support needed to do well in our industry.

How much is our franchise fee?

BlueGrace Logistics offers two types of franchises: national franchises, which allow a franchisee to sell to any customer anywhere in the U.S., and territorial franchises, which allow a franchisee to sell only in a specific geographic area. National franchisee fees are $82,500, and territorial fees range from $22,000 to $38,000.

What’s the total investment for a franchise?

Total investment for a franchise ranges from $39,500 to $181,250. This includes construction, computers, rent, utility deposits, insurance, travel expenses, labor, professional fees, business licenses and fees, and other items.

What types of ongoing support does BlueGrace provide?

We pride ourselves on a best-in-class franchise support team. Unlike many franchise systems where a single franchise support person might support 50-60 franchisees, BlueGrace support staffers support a small number, often as low as 15-20 franchisees per support person. This allows them to get much more involved in helping each owner ramp up faster and achieve performance goals in a shorter timeframe.

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How are territories defined?

BlueGrace Logistics offers two types of franchise territories. National franchises are able to sell to any customer anywhere in the country. We also offer limited territory franchises that have geographic boundaries. Limited territory franchises are often defined by the number of target businesses within the territory boundaries; when we evaluate a territory, we do research to see how many target BlueGrace Logistics customers operate in that area, and the territory is priced accordingly.

Do I have to own trucks or warehouses?

No. BlueGrace Logistics is a non-asset business. That means we don’t own trucks, which is what makes us, as a company, more marketable to shippers. Our service is not limited to the number of trucks and warehouses we own, and our franchisees are able to sell shipping solutions to any customer using just about any freight company.

Do I have to have employees?

A successful BlueGrace Logistics franchise would typically have four to five employees in addition to an involved owner. Typically, you would hire two outside sales people, one inside sales person, a freight logistics coordinator to handle operations and an administrative assistant or bookkeeper. You don’t have to hire all of these when you start, but you’ll want to add them to take advantage of the growth opportunity.

Do I have to have an office?

What’s great about this model is you can customize your business development plan however you see fit. You don’t need an office, but we would like all our franchisees to build a company like ours. There’s no reason why a franchisee can’t have the success we’ve had over the past six years.

Who are our customers?

Our customers range from small business to midsize shippers to what we call our enterprise clients — those who ship $1 million annually. Typically, our customers ship from business to business or may fall under retail, manufacturing, and warehousing categories.

 

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