The vendor opportunity at Unishippers Global Logistics
Unishippers Global Logistics operates 285 units, 211 of them franchised, under parent Unishippers Holdings. The franchisee base includes 107 mapped operators, none of them multi-unit, across 107 located units, concentrated in California, Florida, New York, Illinois, and Massachusetts. Item 19 makes a financial performance representation. Franchised outlets grew 6.6% year over year, and the royalty is 18.5% of Gross Profit Margin on shipments up to 150 pounds.
Who controls software purchasing
Software purchasing runs through Unishippers' headquarters, where Mary ("Dolly") Wagner-Wilkins holds the Chief Technology Officer role. Item 8 requires every franchisee to use the company's Customer Relationship Management software and pay a Technology Fee and CRM Fee to cover the company's administering costs, and to license additional software for myUnishippers, the company's newer technology platform. Item 11 also requires the licensed Unishippers Software and a Windows 10 Pro operating system.
Tech named in the FDD, and what is actually required
Franchisees must use Freight Manager, Unishippers' proprietary software for processing carrier payments; affiliate SGI is the only approved vendor of Freight Manager services. Franchisees must also purchase a computer, broadband internet service, a laser printer, and other software and products required to run the franchise, and must use UMS as their third-party Franchise Administrative Group for back-office billing and collections unless the company approves a franchisee's own arrangement.
Procurement, renewals, and timing
Item 8 runs an approved-supplier list maintained in Unishippers' Operations Manual: beyond the CRM software and myUnishippers platform, which must come from Unishippers itself, other products and services must come from approved suppliers or meet the company's specifications. Franchisees may request approval of alternate suppliers, except for parcel carriers. The royalty is 18.5% of Gross Profit Margin on shipments up to 150 pounds and 15% on heavier shipments, on a 5-year initial term, with one 5-year renewal available if all requirements are met, and further 5-year renewals possible under a then-current agreement.
How to read the Unishippers FDD
The embedded viewer below carries Unishippers Global Logistics' 2023 Franchise Disclosure Document in full, including the Item 8 technology and supplier rules summarized above.
Talk to FranCloud for a ranked list of franchise systems like Unishippers where the technology mandate and growth curve line up with your product.