How to Start a Logistics Franchise in India: Investment, Licensing, and ROI Explained

India’s logistics industry is growing at a rapid pace, fueled by the rise of e-commerce, digital trade, and increasing demand for fast and reliable delivery services. With the sector expected to reach $380 billion by 2025, investing in a logistics franchise has become a smart business move for aspiring entrepreneurs. Whether you’re considering a courier service, last-mile delivery, or supply chain management franchise, this guide breaks down everything you need to know to get started — from initial investment and legal requirements to ROI timelines.
Why Choose a Logistics Franchise?
Unlike starting a logistics company from scratch, a franchise allows you to operate under a well-known brand name with access to proven systems, existing customer bases, and operational support. Logistics franchises offer benefits like:
Low startup risk
Brand trust and network access
Franchisor training & technology
Fast scalability in urban and rural areas
Popular logistics franchise brands in India include DTDC, Delhivery, Blue Dart, XpressBees, and Shadowfax.
Step-by-Step Guide to Starting a Logistics Franchise in India
1. Research and Choose the Right Franchise Brand
Begin by evaluating logistics brands based on:
Investment range
Business model (B2B, B2C, Hyperlocal, etc.)
Franchise fees and royalty charges
Area/territory rights and support system
Check franchise directories or platforms like Franchise Discovery to compare options.
2. Understand the Investment Required
While investment varies by brand, here is a general breakdown:
Type of Logistics Franchise | Investment Range | Area Required |
Courier/Parcel Services | ₹2 – ₹5 Lakhs | 200 – 300 sq. ft. |
Last Mile Delivery | ₹5 – ₹10 Lakhs | 300 – 500 sq. ft. |
Warehousing/Distribution | ₹10 – ₹20 Lakhs | 500+ sq. ft. |
Note: Investment includes infrastructure setup, franchise fees, tech integration, branding, and operational costs.
3. Legal & Licensing Requirements
Before starting operations, secure the necessary documentation and registrations:
Business Registration (Sole Proprietor/LLP/Pvt Ltd)
GST Registration – Mandatory for invoicing and compliance
Trade License – From the local municipal authority
FSSAI License – If handling consumable products
PAN Card & Aadhaar Card – For individual and business identity
Franchise Agreement – Signed contract with franchisor
You may also need a NOC (No Objection Certificate) for your premises and basic insurance for vehicles (if applicable).
4. Location and Infrastructure Setup
Choose a location with:
High demand for delivery/courier services
Easy accessibility for transport vehicles
Proximity to residential, industrial, or commercial hubs
Ensure your setup includes:
Office space and counters
Internet connection & systems
Packaging and scanning tools
Shelving and storage area
Franchisors often help with branding, interiors, and tech installation.
5. Training and Onboarding
Most logistics brands offer:
Staff training (pickup, packaging, inventory)
Software training (tracking, invoicing, booking)
Customer service and complaint management
Operations and marketing support
This ensures that even first-time entrepreneurs can manage the business efficiently.
Return on Investment (ROI)
Logistics franchises typically offer a ROI period of 12 to 24 months, depending on location, brand, and market demand. Key profit contributors include:
Per-shipment commission
Bulk delivery contracts (B2B)
Value-added services (e.g., same-day delivery, reverse logistics)
Many franchise owners break even within the first 12–18 months if they manage operations and customer relationships well.
Conclusion
Starting a logistics franchise in India is not only profitable but also scalable with low risk. With the right brand, strategic location, and strong operational planning, you can tap into India’s growing delivery economy and become a key player in the supply chain ecosystem.
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