Signing out of account, Standby...
- 2022 Franchise 500 Rank
N/R Not ranked last year
- Initial investment
$88K - $124K
- Units as of 2020
2 100.0% over 3 years
Here’s what you need to know if you’re interested in opening a Nexterus Franchising franchise.
Nexterus Franchising is a supply chain technology and management company based in New Freedom, Pennsylvania. Nexterus Franchising is a family-owned business organization that has experience working with global, national, and regional transportation companies. These may include truckload, air, ocean, LTL, and parcel corporations.
Nexterus Franchising may be known for its innovative technology and client loyalty. Nexterus Franchising believes it can keep client relationships for an average of 15 years. Some services Nexterus Franchising provides consist of consultation on transportation management, warehousing, distribution, and business analysis.
Nexterus Franchising has used innovative strategies to solve supply chain management challenges since 1946. Starting in 2018, Nexterus Franchising began its franchising efforts to expand its reach further.
Why You May Want To Start a Nexterus Franchising Franchise
Nexterus Franchising may be perfect for franchisees who already have supply chain management experience or a desire to be a part of an ever-evolving business as a service provider. You can share your knowledge while also owning and operating your own business. Nexterus Franchising’s expertise and technology will back your supply chain management skills and a customer-focused attitude.
Nexterus Franchising may not be suited for franchisees who have zero experience in supply chain management. However, you can still apply if you have a long-term, strong desire to enter and learn the ins and outs of the supply chain management industry.
What Might Make a Nexterus Franchising Franchise a Good Choice?
A Nexterus Franchising franchisee has the chance to work with small-to-medium-sized companies, potentially valued at millions of U.S. dollars, to handle their transportation needs. You need to be more than a vendor for these companies; you should also be an advisor and partner. You should be an independent owner-operator involved in every aspect of the business, from planning to shipping.
If you don't have a dedicated building, you can run a Nexterus Franchising franchise from your home or mobile unit. An exclusive territory will be available for you. You can also opt not to have any employees besides yourself. Clearly, your full-time commitment and hard work are needed to ensure success.
To be part of the Nexterus Franchising franchise team, you should make sure you're financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include advertising fees and royalty fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.
How To Open a Nexterus Franchising Franchise
Before making any financial commitment or signing an agreement with the Nexterus Franchising franchise, you must perform your due diligence and establish if this is the right opportunity for you.
As mentioned earlier, Nexterus Franchising is better suited for white-collar supply chain executives who wish to remain in the business of the group. As part of your due diligence, you may want to speak to existing franchisees and ask the Nexterus Franchising team questions.
If awarded a franchise, franchisees receive a great deal of support from the Nexterus Franchising brand throughout the franchising process. In addition to pre-opening training, franchisees receive support through brand awareness, marketing, technology, and research.
About Nexterus Franchising
- Franchising Since
- 2018 (4 years)
- # of employees at HQ
- Where seeking
This company is seeking new franchisees in the following US states:
- # of Units
- 2 (as of 2020)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Nexterus Franchising franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
- $45,000 - $60,000
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $87,800 - $124,300
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
- $200,000 - $250,000
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
- $80,000 - $100,000
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Veteran Incentives
- 20% off franchise fee
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 5 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- In-House Financing
- Nexterus Franchising offers in-house financing to cover the following: franchise fee, startup costs
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- On-The-Job Training
- As needed
- Classroom Training
- 40 hours
- Ongoing Support
NewsletterMeetings & ConventionsToll-Free LineGrand OpeningOnline SupportField OperationsProprietary Software
- Marketing Support
Co-op AdvertisingAd TemplatesRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail Marketing
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- # of employees required to run
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Interested in franchise ownership like Nexterus Franchising? Request a free consultation with a Franchise Advisor now.
Are you eager to see what else is out there? Browse more franchises that are similar to Nexterus Franchising.
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