Is DPD Franchise Good or Bad? How Much It Cost to Open DPD Franchise

DPD is an international parcel delivery service and a good investment for any willing entrepreneur. It delivers on behalf of the biggest high street brands, including Apple, M&S, Boots, Lush, Nike, ASOS, Next and John Lewis. The company constantly leverages on technological innovation so it can remain the market leader.

DPD’s award-winning Predict service provides customers with a one-hour delivery timeslot and a real-time map where they can trace the whereabouts of the driver.

When you join DPD as a franchisee, you become an Owner-Driver Franchisee – or ODF – and carry out deliveries in your local territory. Franchisees work five days a week, but there is the flexibility to fit this around your personal life.

You can choose which days work best for you and, if you’re eager to maximize your earnings, you can even work a seven – day week. This franchise opportunity combines the independence of being your own boss with the chance to operate under the umbrella of a brand that has a good reputation in the parcel delivery business.

Its low startup cost simply means that the franchise offers a potentially good level of profit in the long term. DPD’s five-year franchise agreement also gives a certain degree of security and a reliable source of income, particularly when you take into account the continuing growth of online shopping in the UK, which is a primary driver of growth in the delivery and haulage industry.

The UK boasts of having the third largest ecommerce market in the world, according to Statista, and was worth £586 billion in 2017.

Reports also highlight that by 2022 it is expected that about 93 per cent of people in the UK who are connected to the internet will be shopping online. If this statistic proves to be correct, it will be the highest penetration rate for online shopping in Europe.

Have it in mind that just like all franchisors, DPD provides franchisees with comprehensive training and ongoing support, the latter is very necessary if you have never run your own business before.

Note that once the franchisees are up and running, they can maximise their earning potential through the use of DPD’s route planning technology and earn loyalty rewards once their businesses become established. For example, for every 100,000 stops completed, franchisees earn a financial bonus.

In the United Kingdom, most DPD franchisees agree that their businesses give them job satisfaction, have helped them stay healthy and active and, in many instances, improved their work – life balance.

Although the DPD franchise has all the elements of an excellent franchise, you are advised to conduct in depth research into any opportunity and take expert independent advice before making an investment.

Advantages of Becoming a DPD Franchisee

DPD’s franchise opportunity allows entrepreneurs to become Owner Driver Franchisees, delivering parcels in their local territory. Below are few advantages of becoming a DPD franchisee.

1. Access to a comprehensive training programme

Have it in mind that once you become a franchisee, you won’t be left in the dark. DPD strives to make sure that its ODFs are confident with the technology and operational processes used as part of the job by providing training and ongoing support.

In addition, you will meet other ODFs at DPD’s social events, so you can discuss any concerns with people who are going through the same process. Therefore, you will spend less time worrying and more on maximising your earnings.

2. Double revenue streams

Also, note that you will earn money from both deliveries and collections. Also, you will receive payment monthly, so you won’t have to wait to be paid. And what’s more, there’s room for growth if you want to expand your business, as after three months you will have the chance to take on more routes.

3. Vehicle support package

Even though it is likely you will use your own vehicle for your rounds, but a vehicle support package is offered by DPD. It includes van servicing, a fuel card and a full uniform, from shorts to fleeces.

4. Latest technology

DPD are known to always invest in the latest technology to support franchisees in planning their route. Handheld technology will guide drivers to each stop, while the Predict service provides customers with a one – hour delivery slot. This is an incredibly useful service and allows customers to reschedule and change their delivery location.

5. DPD offers long – term contracts

Also, note that this franchise contract lasts up to five years so DPD can retain the most talented ODFs. Also, you will be able to take advantage of the DPD loyalty programme that celebrates your key milestones and provides cash rewards.

Challenges of Becoming a DPD Franchisee

Indeed no job comes without challenges, and being a delivery driver can be very demanding from time to time. Howbeit, here are few challenges of considering this franchise opportunity.

• Your day may be severely affected by bad weather, traffic jams, road accidents or maintenance work. This can be challenging and have a big impact on your schedule. In situations like this, you will have to work out an alternative route. If your delivery destinations are within a badly affected area, you may have to reschedule the delivery for another day.
• If your van breaks down, you won’t be able to stick to your schedule. A breakdown can cost you hours, so it is very important you keep your vehicle in good condition. Also ensure you use DPD’s vehicle support package and perform regular maintenance checks so that you can get small problems sorted before they become big ones.
• You may have to drive all day. There’s no getting away from the fact that you will be driving for most of your day. As a result, you will need to find a way to keep your concentration levels up. Always ensure to stay hydrated, take suitable breaks and get fresh air whenever you can.
• Timings can be tight. You will more or less have to deliver a certain number of parcels in a day. So, it is important you work efficiently and stick to a route in order to reach your targets

How Much Does It Cost to Open a DPD Franchise?

In the United Kingdom, three are three different options to choose from when you join DPD. Coupled with becoming an ODF, you can also choose to become an ‘employed driver’ (an employee with a full package of employment benefits) or a self – employed Owner Driver Worker (ODW) (a self – employed contractor that receives paid holiday, sick pay and pension entitlement).

Howbeit, becoming an ODF remains the best way to maximise your earning potential with the company. Typically, there are a variety of deposit plans to suit potential franchisees, so there is flexibility over the amount you pay and when you pay it.

Option one involves a full payment of £1,300, with £1,000 being the deposit and £300 being the fee. Or there is a total payment of £2,300, with £2,000 being the deposit and £300 being the fee. Have it in mind that this deposit amount depends on the franchisee’s suitability score.

Or, if you choose to split the payments up a little more, in option two is a total payment of £1,300, with £300 being paid up front.

After, you can make five £200 payments or eight £125 payments. Note that within just three years, you should be able to grow your business to reach a £140,000 – £170,000 turnover. In the second and third year, there is room to add an additional route, which will grow your income further.

Conclusion

In 2018, 3.65 billion parcels were delivered across the UK; an increase of 400 million packages from the year before. According to reports, volumes are expected to rise by 54 percent between 2019 and 2023. This means it is a fantastic time to consider running your own business in the delivery sector.

DPD says all its franchisees have the potential to turn over between £140,000 and £170,000 annually after three years of trading.

These figures are based on franchisees providing a first class collection and delivery service on a consistent basis and adding an additional route in years two and three. If you are planning to open a DPD franchise, then you must visit their official website and register yourself. You can apply on their website after registering on the website.