Question: How Do I Get A FedEx Route?

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..

Can you finance a FedEx route?

FedEx routes have only been eligible for SBA financing for a few years, and many lenders and business brokers are not aware of this. Very few lenders want to finance FedEx routes and even fewer understand the FedEx business model enough to get the loan underwritten and approved.

Are routes a good investment?

1. A bread route provides a stable income opportunity. You can purchase a bread route for a lot less than what it would take to buy into most other business opportunities. Once you establish your territory and get a regular stream of deliveries going, then your income will become very stable.

Is buying a FedEx route a good idea?

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.

Why are so many FedEx routes for sale?

FedEx Ground contractors cite many reasons for selling FedEx Ground routes. Many of our sellers are ready to retire, spend more time with family, or focus their business efforts elsewhere. We also often post FedEx routes for sale that represent only a portion of one contractor’s business.

How much do FedEx route owners 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 does a FedEx contractor make per package?

Fedex Ground Independent Contractor SalaryAnnual SalaryWeekly PayTop Earners$96,000$1,84675th Percentile$67,000$1,288Average$56,451$1,08525th Percentile$34,500$663

How many FedEx routes can you own?

5 routesTypically, owning up to 5 routes is manageable for a single owner, and can result in a great return. There is some risk, and more routes means more trucks and drivers, and a lot more responsibility. However, with that comes profit. Accruing more FedEx routes can be the savviest investment you make!

Can you buy a UPS route?

Fedex and UPS aren’t franchises. Their routes aren’t sold or bought. Their drivers are employees that are assigned a route. The route is determined by corporate (and computers), not by the driver.

How much does it cost to buy a FedEx route?

The average FedEx route costs approximately $100,000. At the same time, you can expect to employee approximately between 7 – 10 people. From there, it’s all about the little things: trucks, uniforms, decals, and software.

How do you get a FedEx route?

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.