Should I buy a courier franchise or an independent courier company?

Buying an established courier operation can mean taking over a franchise location or a company that has always stood alone. The trucks and routes may look alike. The relationship does not. One comes with a franchisor and a set of rules. The other leaves you to supply the systems, training and supplier terms yourself. Here is how to weigh them without deciding for you.

What a franchise can offer

A recognized name, dispatch and tracking systems, training and sometimes national accounts can make a courier business easier to run. Ask which of those you actually receive, and which the current owner built personally. Ask how much of the revenue comes from the franchisor’s network and what happens to it if the relationship ends.

What it costs you in control

Read the franchise agreement for ongoing fees, the territory you may serve, required suppliers and the term. Find out whether the franchisor must approve you as a buyer, how long approval takes and whether a transfer fee applies. Whether any franchise disclosure rules apply where the business operates is a question for your lawyer, who should review the agreement before you commit.

What an independent asks of you

An independent keeps its own pricing, customers and routes, but its systems, brand and accounts depend on the people who built them. Ask whether the software is licensed to the company or the owner, which customers are under contract and how new work is found. Check whether any large account depends on the seller personally.

• Which customers belong to the business and which to the network.
• What you may change, and what needs approval.
• What you would have to build or buy yourself.