Due to the predictable revenue stream, FedEx routes are excellent business investments. Few variables impact revenue and the e-commerce market continues to drive steep growth in the logistics space.

How do you purchase a FedEx ground route?

You can get a FedEx Ground route contract if you are an independent business that is established as a for-profit corporation and are registered and in good standing in the state in which you plan to conduct business. The first step toward achieving the contract is to submit the Request for Information to FedEx.

Can you purchase FedEx routes?

You can buy a FedEx route on a FedEx route marketplace, or from an independent owner; once you do, you’ll gain access to a fleet of trucks, employees, and equipment necessary to deliver packages all over the country. FedEx routes function as a business and can be a great way to make money.

How much money do you need to buy a FedEx route?

An average priced FedEx Ground route for sale will require a down payment of around $150,000-$200,000, plus working capital. Higher cost routes, like our premier linehaul listings, may require down payments in excess of $1,000,000.

How profitable is a FedEx route?

While a very profitable business, FedEx route businesses do not generate profit margins of 30% or more. These are healthy businesses! For example, if you purchase a FedEx Ground route with approximately $800,000 in revenue per year, you can expect to pull in approximately $120,000 in profit (or 15%).

How much does a FedEx contractor make per package?

FedEx’s rates to contractors vary widely by location and are negotiated individually. But on a rough basis, a contractor can expect about $1.50 per SmartPost parcel, compared with $2.70 for a conventional one.

How do FedEx route owners get paid?

A route owner can make an annual profit of $30,000 to $50,000 on a single route, he said. Each business has a unique contract with FedEx that outlines the terms of how they’ll be paid. FedEx usually pays route owners based on how many stops the truck makes and how many packages the driver picks up and delivers.

How does owning a FedEx route work?

In a nutshell, route owners inherit an established book of business and need to purchase the equipment necessary to successfully do the work. When it comes to FedEx routes, individual owners set their workers pay, which can be hourly or daily. Within legal and FedEx guidelines, the owner sets the wage and frequency.

How do I finance a FedEx route?

If you are considering financing an operation of FedEx Ground routes, the two most common types of loans are a Small Business Association loan and a conventional loan. However, you can also use a creative financing approach, which can significantly expedite the selling process.

How much do FedEx route owner make?

How to buy your own FedEx Ground route?

Route Consultant can guide you through the entire process of purchasing your own FedEx Ground routes. Additionally, we host New Investor Summits for individuals consider a purchase or already under contract on a business. These are full-day education events, a crash course in FedEx Ground route ownership.

Who is the best person to sell a FedEx route?

If you’re considering selling a FedEx business, call Miriam. YOU WILL NOT BE DISAPPOINTED!!!” “I hired Miriam Liang to help sell the FedEx routes I owned for 13 years. She was recommended by colleague at FedEx Ground. She is professional and takes confidentiality seriously.

Is it possible to finance a FedEx route acquisition?

It allows you to own a logistics and delivery company with a great client base – all while leveraging FedEx’s great brand reputation and resources. However, getting the financing to purchase a FedEx route can be a challenge. This type of business structure does not fit common bank lending models well.

Where are the FedEx Ground routes in Ohio?

26 Zip Code Fed Ex Ground Routes out of the Perrysburg, Ohio FedEx Depot; 33 Delivery Trucks and Vans; 1 Tow Truck; an Office and Repair Center Building; and 4 Managers. All set up in 4 companies: 2 companies…