Unishippers Franchise Costs & Fees
Date of Incorporation: 1987
Franchising Since: 1987
Headquarters: Salt Lake City, Utah
Business Description: The franchisor is Unishippers Global Logistics, LLC. Unishippers operates and licenses franchises to others to operate businesses offering shipping services under the “Unishippers” name and marks.
Franchise Offer: A Unishippers franchise permits franchisees to promote, establish, bill, and collect on customer accounts for transportation services offered by one or more domestic and international carrier companies.
Financial Assistance: Unishippers may offer financing for the Initial Franchise Fee for a National Franchise and the Purchase Price for a Select Franchise. Unishippers may finance up to 50% of the Initial Franchise Fee for a National Franchise and 50% of the Purchase Price for a Select Franchise for a period of 42 months, at an interest rate of the then-current prime rate plus 2.5% APR. Unishippers does not guarantee any notes, leases or obligations, nor does it receive any payments from any person for the placement of financing with that person.
Training and Assistance: Unishippers provides an Initial New Owner Training Program for new franchisees that currently consists of approximately 120 hours of classroom training, 120 hours of on-line pre-work, and 32 hours of on-the-job training. Unishippers will provide the New Owner Training Program at its headquarters or at another designated location. Franchisees and their Designated Manager (if they are not the manager) must attend and successfully complete the Initial New Owner Training Program within 10 months following the full execution of the franchise agreement. As part of the Initial New Owner Training Program, new franchisees are required to spend at least two days at another Unishippers franchise office, designated by Unishippers, to complete the internship portion of the Initial New Owner Training Program. Franchisees must require that their sales personnel attend training sessions provided by Unishippers in accordance with Unishippers’ training standards and procedures. Unishippers also provides annual training for franchisees and/or sales managers. These training sessions take place at the Unishippers Annual Convention and Sales Meeting and provide a brief review of sales techniques and product updates.
Territory: Depending on the type of franchise franchisees choose to purchase, their Marketing Area can be either multiple (Multi) or single (Single). A Multi franchise means that more than one franchisee has the rights to a particular marketing area. Any Shared Accounts revenue (as defined in the Shared Account Policy) in such marketing area will be split. A Single franchise means that only one franchisee has the rights to a particular marketing area. Any Shared Accounts revenue (as defined in the Shared Account Policy) in such marketing area is not split. Typically, Select Protected and Select Marketing Areas are identified by city, county, zip codes or other political or geographical boundaries. One sales territory in a metro franchise is comprised of about 12,000 businesses. Unishippers prefers to limit the size of a metro franchise to fewer than 24,000 businesses. State franchises are based on counties that do not feed major metropolitan areas. One sales territory in a state franchise is comprised of about 84,000 businesses. Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that the franchisor controls.
Term of Agreement and Renewal: The length of the initial franchise term is 5 years. One additional 5-year renewal term is available, if all requirements are met.
Obligations and Restrictions: Franchisees will be held personally liable for the fulfillment of the obligations of the franchise. If the franchisee is a business entity, each individual with an interest of 5% or more in the franchise will be required to personally join the franchise agreement and sign a Guarantee and Assumption of Obligations. Spouses will not be required to personally join the franchise agreement and sign a Guarantee and Assumption of Obligations unless they hold an interest of 5% or more in the entity. Franchisees must promote, market, and sell only those services and goods described in the Franchise Agreement, except as otherwise authorized in writing by Unishippers.
Estimated Number of Units: 295
|Name of Fee||Low||High|
|Franchise Fee||- Single Select Franchises – $30,000 base fee, plus $15,000 per Sales Territory within Marketing Area.
- Multi Select Franchises – $30,000 base fee, plus $10,000 per Sales Territory within Marketing Area- National Franchises –$30,000
|Real Estate Deposit and Improvements||$0||$15,000|
|Fixtures, Furniture, Equipment and Signs||$2,500||$7,500|
|Computer Hardware and Software||$3,000||$9,000|
|Initial Inventory and Supplies||$500||$5,000|
|P.O. Box/Lock Box Set Up Fee||$56||$128|
|Utility Deposits and Costs||$150||$450|
|Broadband Internet Service||$30||$300|
|Telephone Deposits and Costs||$150||$450|
|Business Licenses and Fees||$100||$2,000|
|Ground, Ocean and Air Freight Licensing Fees and Surety Bonds||$563||$563|
|Travel and Living Expenses during Training||$3,000||$8,000|
|Travel and Living for Basic Sales Training Program (dependent on # of non-owner sales consultants)||$0||$3,000|
|Additional Funds - 6 months||$1,100||$319,200|
|Training Costs||$2,500 for Initial New Owner Training Program, which includes Initial New Owner Training Program, plus the amount of Franchisee personnel and manager's costs and compensation for attending training. If the Franchisee wishes to send more than one person to this training, the Franchisee must pay $500 for each additional person. $750 per franchise for Freight Manager training.|
|Type of Fee||Amount|
Single/Multi Select Franchises
|The greater of: 18.5% of Gross Profit Margin on shipments zero to 150 pounds and all other services and products. 15% of Gross Profit Margin on shipments over 150 pounds.
The Minimum Royalty Payment, as defined in the Franchise Agreement.
|National Franchises||15% of Gross Profit Margin on shipments over 150 pounds. On shipments zero to 150 pounds as follows:
- First 6 months from date Franchise Agreement is signed – Royalty Payment is waived.
- Months 7- 12 – 5% of Gross Profit Margin.
- Months 13-18 – 10% of Gross Profit Margin.
- Months 19-24 – 15% of Gross Profit Margin.
- Starting on the 25th month following date of Franchise Agreement – 18.5% of Gross Profit Margin.
|Marketing Fund Contribution||% of Gross Profit Margin:
Phase 1: 1%
Phase 2: 2%
Phase 3: 3%
|Customer Relationship Management (CRM)Technology and Hosting Fee (includes UONE and Express Manager)||Technology and Hosting Fee: $65.00 per territory per month.
User Fee: $25.00 per user.
|Financial Management Software||Currently zero.|
|Freight Manager Fee||Fee based on Unishippers System shipments transacted through Freight Manager. Current per shipment fee is approximately $5.20
Initial New Owner Training Program is $750 (only required if franchisees are performing their own Administrative Services).
Additional training, EDI/Data Integration, Customer Coding and Development, and Consultations/Development of Processes and Procedures (both internal and for customers and carriers) will be billed at a rate of $150 per hour.
Contract Maintenance, System Configurations, Historical Reporting, and Batch Rating/Analysis is billed at a rate of $68 per hour.
$25 per shipment per week fee assessed by SGI for shipments disputed by franchisees and left unresolved for more than one month. Fee will be assessed if the dispute is deemed invalid, in SGI’s sole discretion.
Late fees: If ACH is returned, franchisees are subject to a 10% or $250 return fee, whichever is greater.
|Late Fees||10% of royalty payments, and advertising assessments not paid by due date.|
|Interest||Lesser of 18% per year or highest rate allowed by law on all overdue amounts.|
|Non-Sufficient Funds (NSF) Fee||Payment returned for NSF will incur the following fees:
- $150 for returned UPS carrier payment.
- 10% of returned carrier payment of SGI, but not less than $250
- $35 for returned Technology Hosting Fee payment.
|Amendment Fee||$500 - $3,000, depending on the type of amendment to the Franchise Agreement.|
|Debts to Carriers||Amounts billed by or owing to Carriers on shipments, services and goods.|
|Other Debts||Amounts billed by or owed to third parties.|
|Convention Related Expenses and Any Other Mandatory Meetings||Registration fees and costs of travel and accommodations. Registration fees in 2015 were as follows:
Owner Early Bird: $260
Owner Standard: $300
Owner Onsite: $360
Employee Early Bird: $210
Employee Standard: $250
Employee Onsite: $310
|Insurance Payments||Amounts imposed by insurance companies.|
|General Indemnification||Depends on circumstances.|
|Promotional Material Reimbursement||Depends on circumstances.|
|Indemnification for Noncompliance with Laws||Depends on case.|
|Inspection Charges||Costs of further inspections.|
|Audit Charges||Amount of understatement, up to 18% interest and costs of audits.|
|Purchase Option for Indemnification and Costs||Amount of indemnification and costs arising from the merger or conversion.|
|Debts at Termination||Payment of all debts owed to Unishippers and others.|
|Termination Indemnification and Costs||Indemnification of Unishippers and payment of all Unishippers costs related to the termination payment in the Franchise Agreement or the written authorization and waiver.|
|Owner Liability, Guarantees and Assumptions||Amount of liability, guarantee and assumption.|
|Costs of Mediation/Arbitration||One-half of total cost.|
|Attorneys’ Fees and Costs||Amount of the franchisee’s attorneys’ fees and costs.|
The above information has been taken from the FDD of Unishippers. Year of FDD: 2016
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