Is owning a FedEx route profitable?

Is owning a FedEx route profitable?

As you look to buy a FedEx Ground route, look for P&D businesses with profit margins between 10%-25% of revenue. 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 do FedEx ground 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.

Is buying a FedEx route worth it?

FedEx routes can be highly profitable, but they may not offer the full potential profitability of starting a business from scratch. If you invent something new or capitalize on a new market, you could conceivably make more money that way.

How much does it cost to start a FedEx business?

That said, your primary startup costs will be for your routes and vehicles. FedEx routes are available all across the country. Depending on the type of route you are considering (P&D vs. linehaul), a single route may cost anywhere from $100,000 to $400,000, depending on its profitability, location, fleet, etc.

How much do FedEx contract owners make?

What are Top 5 Best Paying Related Fedex Ground Independent Contractor Jobs in the U.S.

Why are people selling FedEx route?

An ISP Wants to Retire Retirement is the most common reason prompting a FedEx ISP to sell their route. The FedEx Ground brand officially launched in 2000, so many contractors have delivered packages for more than twenty years.

How do I get a FedEx franchise?

How to Apply

1. Determine Whether You Qualify. Answer a few simple questions to determine whether you qualify for the FASC program. …
2. Create a FedEx Account. If your store is new or you’re taking over a store from a previous owner, set up a new FedEx account number by calling 1.800. …
3. Fill Out an Application.

How much is a FedEx route worth?

How Much Are FedEx Routes Worth? On average, a FedEx route is worth between 2.5 times and 3 times the free cash flow that it generates. The annual profit per route is between $30,000 and $40,000 per year, so if you multiply that amount by the industry multiple, you get a range between $75,000 and $120,000 per route.

How do I get a FedEx contract?

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.