Franchising Since: 1987
Headquarters: Dallas, Texas
Estimated Number of Units: 290
Franchise Description: The franchisor is Unishippers Global Logistics, LLC. The franchisor contracts with companies that provide small parcel (via air express and/or ground delivery) and freight (full truckload and/or less than truckload) shipping services, and other transportation services with third party carriers to provide these services at a discount. Franchisees are granted the right to use the Unishippers marks and set up customer accounts with certain carriers and to provide customer service on these customer accounts. Franchised businesses are conducted according to a business concept, format, and operation collectively called the Unishippers system.
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Territory Granted: Franchisees will not receive an exclusive territory. Franchisees will have the non-exclusive right to open or relocate one or more Unishippers offices in the continental United States, to solicit Unishippers sales and accept Unishippers orders, and to carry on business as a Unishippers franchise using the Unishippers marks, with the exceptions denoted in the FDD. Franchisees may not establish customer accounts for businesses that are active customer accounts of a carrier(s) or of another sales and marketing business contracting with carrier(s) as defined in the carrier contract(s) or as communicated by the franchisor.
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 the franchisor. See FDD for limitations in the customers franchisees may sell to. Franchisees must meet certain minimum performance and other requirements under the Franchise Agreement. If franchisees fail to do so, the franchisor may terminate the Franchise Agreement.
Term of Agreement and Renewal: The length of the initial franchise term is five years. One additional five-year renewal term is available, if all requirements are met.
Financial Assistance: Currently the franchisor offers financing for the initial franchise fee for a new franchise, if the franchisee meets the requirements. Depending on their qualifications and the franchisor’s then-current financing policies, the franchisor may finance up to 100% of the initial franchise fee for a period of 60 months. In addition, the franchisor currently offers financing for start-up funding for a new franchise, if franchisees meet the requirements. Depending on the franchisee’s qualifications and the franchisor’s then-current financing policies, the franchisor may finance up to $50,000 of the start-up costs for a period of 60 months. Franchisees may not finance any part of the initial franchise fee or purchase price of the franchise with any other person, partnership, corporation, or other business entity. The franchisor will file a Uniform Commercial Code Financing Statement (UCC-1) in substantially a form attached to the Franchise Agreement to perfect its security interest in the franchise. The franchisor must be in the first lien position.
Estimated Initial Investment
Name of Fee | Low | High |
Franchise Fee | $1,500 | $30,000 |
Real Estate Deposit and Improvements | $0 | $10,000 |
Fixtures, Furniture, Equipment and Signs | $0 | $7,500 |
Computer Hardware and Software | $1,000 | $7,500 |
Initial Inventory and Supplies | $250 | $1,000 |
Utility Deposit and Costs | $50 | $500 |
Telephone and Broadband Internet Service | $150 | $500 |
Business Licenses and Fees | $100 | $2,500 |
Broker Authority, BOC-3, Unified Carrier Registration, and Licensing Fees | $390 | $500 |
Surety Bond | $600 | $1,300 |
Automobile | $300 | $4,000 |
Insurance (for the first year) | $525 | $2,500 |
Organizational Expenses | $1,000 | $7,500 |
Travel and Living Expenses (during training) | $2,500 | $8,000 |
Additional Funds – 3 Month Initial Period | $9,000 | $150,000 |
ESTIMATED TOTAL | $17,365 | $233,300 |
Other Fees
Type of Fee | Amount |
Royalty Payments: Select and National Franchises | The greater of: (i) 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; or (ii) minimum royalty of $17.50 per 4 week month or $21.88 per 5 week month and increasing by that respective amount each month. |
Marketing Fund Contribution | Currently 1% of gross profit margin. Phase 2: 2% Phase 3: 3% |
Technology Fee | Currently $65.00 per territory per month. |
User CRM Fee | Currently, $62.24 per user/per month. |
Freight Fees | Fee for LTL and FTL shipments: Current per shipment fee is approximately $5.20 ($3.70 for each bill of lading (BOL) and $1.50 for each invoice on BOL). Fee assessed if a dispute is deemed invalid: $25 per shipment per week fee assessed for shipments disputed by franchisees and left unresolved for more than one month. Not applied where prohibited by law. $20.00 fee per BOL for Missing BOL. Not applied where prohibited by law. |
Administrative Group Fee | Currently, 7%-26% of gross profit margin, depending on the type of shipment (UPS, LTL or TL). |
New Term Fee | $5,000 |
Transfer Fee | $15,000 - $30,000 – new to system (as applicable); $5,000 – in-system |
Amendment Fee | $1,000 - $5,000 |
Late Fees / Rejected Payments | 10% of the amount owed to the franchisor that is past due or rejected, minimum of $250. |
Interest | Lesser of 18% per year or highest rate allowed by law on all overdue amounts. |
Debts to Carriers | Amounts billed by or owing to carriers on shipments, services and products. |
Other Debts | Amounts billed by or owed to third parties. |
Mandatory Meeting Fees | Registration fees vary between $0 and $500 per person. |
Meeting Non-Attendance Fee | $1,000 |
Insurance Payments | Amounts imposed by insurance companies. |
General Indemnification | Depends on circumstances. |
Inspection Charges | Costs of further inspections after the first one. |
Audit Charges | Amount of understatement, up to 18% interest (or highest rate allowed by law) and costs of audit. |
Debts at Termination | Payment of all debts owed to the franchisor and others. |
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