Capital notes
Logistics Path capital notes
Logistics Path capital notes set out the real cash you need for courier, delivery and mobile service franchises, from upfront fees to working capital for slow months.
Costs to budget for logistics franchises
Start-up costs in logistics franchises are shaped by your format. Most courier and last-mile franchises need at least one vehicle or van, sometimes bakkies with PrDP drivers. Budget for the upfront franchise fee, which is usually due before any vehicle, fit-out or equipment expenses.
Vehicle purchase or lease is usually the biggest line. Add costs for branding, tracker systems, and insurance from day one. Depot or parking space, even for a mobile service, adds a deposit and often a first month's rent. Equipment for scanning, route planning, basic shelving and secure storage may be mandatory.
Opening stock is rarely large unless you handle parts, packaging or consumables for same-day service. Ongoing costs include monthly royalties, marketing levies, technology fees and insurance renewals. Most courier systems require regular audits, and some charge a monthly tech or call centre fee.
- Upfront franchise fee
- Vehicle or fleet purchase/lease and branding
- Depot/parking deposits and rent
- Equipment and tech setup
- Insurance premiums
- Royalties and marketing levies
- Working capital for slow months
Where buyers underbudget in logistics
Buyers often focus on the vehicle and fee, but underestimate working capital to cover slow collections, insurance excesses or damage, and downtime when a key driver is off the road. Costs for route management software, vehicle trackers and rising fuel prices can quickly increase overall spending.
Depot lease escalations and annual vehicle licence renewals also slip through early budgets. Driver-led models must allow for a minimum wage of R30.23 per ordinary hour, limited to 45 ordinary hours each week, with higher rates due for work on Sundays or on public holidays. PrDP drivers are a legal requirement for vehicles over 3,500 kg, which can influence your wage bill.
Building your cash float and buffer
The CPA franchise disclosure document must state outlet numbers, net profit and turnover growth for the last year, and give a solvency statement. Use these to check if the model supports positive cash flow in quieter months. Ask for written projections, with their assumptions, and check what past franchisees say about actual float required.
Contact at least three current owners from the list in the disclosure, and ask directly about payment cycles, late-paying clients, and insurance claim delays. Compare your planned buffer to theirs. If fuel or insurance rates have shifted since the disclosure year, adjust upwards.
What to send us for a review
To help you build realistic capital notes, send the franchise disclosure document, a summary of your planned territory or base, and any figures or fee sheets already supplied by the franchisor. If you have spoken to a current owner, share the notes.
We will match your structure to the working capital risks for your chosen format and area. Numbers & Notes sessions can include depot lease comparisons, vehicle finance structuring, and owner wage buffers.
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Send your logistics cost lines
Share your intended area, delivery or courier setup, and franchise information with Ms Siphokazi Mbanjwa. We will help you check working capital and spot underbudgeted cost lines.