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Home > Franchises > Worldwide Express
Worldwide Express
A franchise agreement takes place when the concerned parties involved are bound together through certain contractual provisions. This is an arrangement whereby someone with an idea for a business, the franchisor, sells to another person the franchisee the rights to use the business's name, sell a product, or provide a service to someone else.
Worldwide Express was established in 1991, and they offered first time franchising in 1994. Franchisor is a privately held company with 12 employees, 7 employees in franchise department. Utilizing a Selling Partner for overnight express air and ground services makes perfect sense.
The selling partner concept has been well established in business where there are presently thousands of selling partners. In fact, industry leaders such as General Motors, Anheiser Busch and AT&T to name a few, are well established partnership based operations and continue to utilize outsourced networks to this day. The air express and ground sales partner market is in its initial expansion stages with only a few national resellers, of which Worldwide Express is the fastest and largest.
An exclusive aspect of the air express and ground delivery market is that it operates within a well-defined, proprietary transportation network that essentially limits the potential number of sales partnerships. This, in combination with their strong relationship with DHL and others, enables Worldwide Express franchisees to be one of a very special group positioned to take advantage of the huge $50 billion air express and ground market.
The costs and fees include total investment of $47500 to $348800, franchise fee is $28100 to 315000, ongoing royalty fee is 6 percent and Term of agreement is 5 years, renewable. The company’s ranking in Franchise 500 is 326 in 2006, 256 in 2005, 186 in 2004, 219 in 2003, and 174 in 2002 according to Entrepreneur magazine 2002-2006.
In the air express industry it is very costly for market leaders such as FedEx, UPS and DHL to acquire small to medium sized customers. Worldwide Express focuses on this vast highly fragmented market and handles marketing, account set up, maintenance, billing and collections which create tremendous value for their business partner, DHL. They attain this by delivering to customers a higher level of attention to service and detail, and substantially lower rates.
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