Table of Contents
- 1 Are FedEx delivery routes a good investment?
- 2 How much does a FedEx ground route owner make?
- 3 How does owning a FedEx route work?
- 4 How much does it cost to buy a FedEx route?
- 5 How do I buy a FedEx route?
- 6 Is it profitable to buy a FedEx route?
- 7 Why do brokers/sellers advertise FedEx routes for sale with extraordinary profit margins?
- 8 Is FedEx Ground a good investment for You?
Are FedEx delivery routes a good investment?
As a relatively sound and stable investment, FedEx routes can show an average increase of 15\% per year. You can spend countless nights wondering how much does it cost to buy a FedEx route, but you would be better served to understand the benefits and opportunity that being an operator can present.
How much does a FedEx ground route owner make?
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 much money do you make owning a FedEx route?
The yearly average profit for a FedEx route has been reported at between $30,000 – $40,000. While this might not seem like you are going to be a millionaire, the best part of owning a FedEx route owner is that you don’t have to own just one. Renowned business tycoons own multiple FedEx routes.
How does owning a FedEx route work?
To own a route with FedEx, you will have to sign a contract with FedEx and become an independent contractor. This means you are not an employee of FedEx and will not receive health insurance, a retirement plan, or other benefits from FedEx. Additionally, FedEx requires that your business is set up as a Corporation.
How much does it cost 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.
What is buying a route?
You make money owning a bread route by earning a commission (usually around 20\%) on your sales to various businesses in your territory who buy bread from you. In many cases, your territory is “protected,” which means no one else can sell your brand of bread to retailers in your area.
How do I buy a FedEx route?
Is it profitable to buy a FedEx route?
While a very profitable business, FedEx route businesses do not generate profit margins of 30\% or more. As you look to buy a FedEx Ground route, look for P&D businesses with profit margins between 15 and 20\% of revenue. These are healthy businesses!
How profitable are fedfedex ground routes?
Fedex Ground routes can be very profitable, although not immediately. You will need to buy the route and the truck (which vary in sizes) and then pay for things like insurance, but the routes can generate several hundred dollars a day in revenue.
Why do brokers/sellers advertise FedEx routes for sale with extraordinary profit margins?
At times you will see brokers/sellers advertise FedEx routes for sale with extraordinary profit margins. They create this attention-grabbing margin by inaccurately calculating or intentionally misrepresenting the Total Expenses of the business.
Is FedEx Ground a good investment for You?
Our answer to those top questions is always yes! Our team is one of the largest active contractors to FedEx Ground in the US and, if we could go back and do it all over again, we would absolutely invest in this industry.