Velocity Express Expands National Network with Franchising Strategy
Velocity Express Corporation, the nation’s largest provider of time definite regional delivery solutions, unveiled plans to expand their already extensive national delivery network though franchising.
Chairman and CEO Vince Wasik announced the formation of the company’s new subsidiary Velocity Systems Franchising Corporation (VSFC). The new company will be responsible for developing franchise agreements with local and regional delivery companies in markets not currently served by Velocity Express.
“Through our franchise model, Velocity Express can offer our national customers increased geographic coverage and enhanced service offerings by partnering with the best, local and regional delivery companies in a specific market. In turn, by becoming a Velocity franchise operation, our franchisees will have access to opportunities created by our national account sales strategy, which they may not have had access too. This is truly a “home-run” for both of us.” Wasik stated.
Ted Stone the company’s CFO added, “Franchising will allow us to improve our gross margins by dramatically reducing the capital expenditures required to open new markets, while allowing us to expand our capabilities. As we migrate from our current agency relationships to franchise agreements we will also strengthen our financial performance.”
Wasik then announced that Drew Kronick, the company’s Executive Vice President of Business Development and Supply Chain Solutions, will serve as the President of VSFC. “I am very excited about where we are headed with our franchising initiative. This is a huge competitive advantage for us in the marketplace and will enhance our already strong value proposition to our customers. Unlike 3rd Party Logistics relationships, we will have a much closer bond with our franchisees, who will be certified in the procedures required by Velocity Express’s customers.” Kronick concluded.
