2009
200
$39,500
$22,000
$181,250
No
BlueGrace Logistics stands as a prominent third-party logistics (3PL) provider in the United States, offering innovative freight and supply chain solutions to businesses nationwide. Established in 2009 by Bobby Harris, the company has revolutionized logistics through its proprietary technology, BlueShip®, and a client-centric approach. Initially launched as a franchise in 2011, BlueGrace expanded rapidly, boasting nearly 200 locations across the country by 2016 .
However, as of February 2024, BlueGrace Logistics has ceased offering new franchise opportunities . Despite this, the company's legacy and impact on the logistics industry remain significant, making it a noteworthy case study for prospective investors interested in the logistics and supply chain sector.
Investing in BlueGrace Logistics offered several compelling advantages:
Proven Business Model: Leveraging the BlueShip® platform, franchisees could streamline operations and enhance customer service.
Comprehensive Support: From initial training to ongoing operational assistance, BlueGrace provided robust support to its franchisees.
Established Brand: With a strong national presence, franchisees benefited from brand recognition and a loyal customer base.
Technological Edge: The company's investment in technology ensured that franchisees remained competitive in a rapidly evolving industry.
Founding and Establishment
BlueGrace Logistics was founded in 2009 by Bobby Harris, a visionary entrepreneur who recognized the growing need for efficient, technology-driven freight management solutions in the United States. The company was established in Riverview, Florida, with the goal of providing small and medium-sized businesses access to professional logistics services that were traditionally available only to large corporations.
Franchise History
BlueGrace began offering franchise opportunities in 2011, aiming to expand its national presence through a network of independently operated franchise locations. By 2016, it had grown to nearly 200 franchise units, making it one of the fastest-growing logistics franchise systems in the country. The franchise model allowed entrepreneurs to leverage BlueGrace’s proven business model, proprietary technology platform, and brand recognition.
Ownership and Investment
BlueGrace Logistics is a privately held company. In 2016, it received a significant $255 million investment from Warburg Pincus, a global private equity firm. This investment supported the company’s expansion, technology development, and operational scaling.
Market Presence and Industry Position
BlueGrace operates in the 3PL (Third-Party Logistics) and supply chain management sector, providing freight services, shipping solutions, and supply chain optimization. Its proprietary technology, the BlueShip® Transportation Management System, sets it apart from competitors by automating logistics processes, improving operational efficiency, and enhancing customer service. The company’s client base includes both small businesses and large enterprises across the U.S., giving it a strong market footprint.
Brand Journey and Recognition
Over the years, BlueGrace Logistics built a reputation for innovation and reliability in freight and logistics. It leveraged a franchise model to rapidly scale operations while maintaining high service standards. The brand became synonymous with tech-enabled logistics solutions, setting benchmarks for service, training, and support in the industry.
Summary
Founded: 2009
Founder: Bobby Harris
Headquarters: Riverview, Florida
Franchising Started: 2011
Franchise Units: ~200 (as of 2016)
Industry: Logistics & Supply Chain Management
Key Technology: BlueShip® TMS
Ownership: Privately held, supported by Warburg Pincus investment
BlueGrace Logistics was recognized for its comprehensive support system, designed to ensure that franchisees could successfully operate their logistics business, even if they had no prior experience in freight management. The support spanned from pre-launch training to ongoing operational assistance.
Before opening, franchisees received extensive guidance to ensure a smooth start:
Site Selection & Setup: Assistance in choosing the right location for the franchise based on market demand and local competition.
Business Planning: Help with financial planning, forecasting, and budgeting to align with expected revenue streams.
Pre-Launch Marketing: Guidance on local marketing campaigns, outreach to potential clients, and strategies to build initial customer traction.
Legal & Compliance Support: Assistance with franchise agreements, permits, and adherence to local regulations in logistics and transportation.
BlueGrace provided hands-on training to teach franchisees the logistics and operational aspects of the business:
Freight Management Systems: Comprehensive training on the BlueShip® Transportation Management System, which helps manage shipments, track deliveries, and optimize routes.
Day-to-Day Operations: Procedures for managing client accounts, scheduling shipments, and handling customer queries efficiently.
Staff Training: Guidance on hiring and training employees to maintain consistent service standards.
Franchisees were supported in building their client base and promoting their services:
National Marketing Programs: Access to company-wide campaigns to boost brand visibility.
Local Marketing Assistance: Customized strategies for local market penetration, including digital marketing, email campaigns, and event participation.
Sales Training: Coaching on B2B sales, client acquisition, and relationship management to drive revenue.
To stay competitive, franchisees had access to ongoing learning resources:
Webinars and Workshops: Regular online and in-person sessions on industry trends, technology updates, and operational best practices.
Knowledge Base Access: A library of training manuals, standard operating procedures, and marketing resources for reference.
Even after launch, BlueGrace ensured franchisees received continued guidance:
Dedicated Franchise Consultant: Personalized support from experienced franchise advisors to address operational challenges.
Technology Support: Continuous updates and technical assistance for the BlueShip® platform.
Business Growth Strategies: Advice on expanding services, acquiring new clients, and optimizing logistics operations.
Networking Opportunities: Access to annual conferences and franchisee meetings to share insights and learn from peers.
BlueGrace Logistics sought franchisees who could successfully manage and grow a technology-driven logistics business. The ideal franchisee combined business acumen, financial capability, and a passion for service. Below is a breakdown of the characteristics and qualifications BlueGrace looked for:
Experience in Sales or Business Operations: Franchisees with experience in B2B sales, account management, logistics, or general business operations were preferred, as these skills helped in acquiring and managing clients.
Entrepreneurial Mindset: Self-motivated individuals who could take initiative, identify opportunities, and drive business growth independently.
Leadership Skills: Ability to manage a small team, delegate responsibilities, and maintain high operational standards.
Investment Readiness: Ability to meet the total investment required, which historically ranged from $39,500 to $181,250, including the franchise fee, infrastructure, marketing, and working capital.
Net Worth & Liquid Assets: Candidates typically needed a minimum net worth of $100,000 and $100,000 in liquid assets to ensure sufficient funds for setup and initial operations.
Risk Tolerance: Comfortable with the inherent risks of operating a new franchise while expecting a realistic ROI over time.
Customer Service Orientation: A strong focus on providing exceptional service to clients and building long-term relationships.
Industry Interest: Enthusiasm for logistics, supply chain management, and technology-driven solutions.
Long-Term Vision: Willingness to grow the franchise over multiple years, adapting to market changes and scaling operations.
Market Understanding: Awareness of the local business environment and ability to identify potential clients in underserved areas.
Geographic Preference: Open to establishing the franchise in regions with growing business activity, ideally where logistics demand is increasing.
Problem-Solving Skills: Ability to handle operational challenges efficiently.
Adaptability: Willingness to adopt BlueGrace’s technology and business systems fully.
Networking Ability: Capable of building partnerships and leveraging local business networks to expand the client base.
| Financial Component | Amount (USD) | Details / Notes |
|---|---|---|
| Initial Franchise Fee | $22,000 – $82,500 | One-time fee for brand and system access |
| Minimum Investment Required | $39,500 | Covers franchise fee, initial setup, technology, and working capital |
| Total Estimated Investment | $39,500 – $181,250 | Includes infrastructure, equipment, technology, marketing, and working capital |
| Working Capital | $7,500 – $40,000 | For day-to-day operations during initial months |
| Marketing & Advertising Budget | ~1% of revenue | Access to national marketing campaigns plus guidance for local marketing |
| Royalty Fee | 18% | Ongoing monthly fee for continued use of brand and system |
| Franchise Agreement Term | 5 years | Renewable upon successful performance |
| Break-Even Time | 12 – 24 months | Average period for franchisees to recover initial investment |
| Expected ROI | 20 – 30% | Depending on market location and business operations |
| Potential Revenue Streams | Freight management, shipping solutions, supply chain consulting, third-party logistics services | Diversified logistics services allow multiple income channels |
