How does FedEx Route ownership 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 do I get a FedEx route 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.
Is a FedEx route 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 it cost to own a FedEx route?
The average FedEx route costs approximately $100,000. Depending on the number of routes you own, whether you run one yourself, and how many drivers you need, you can expect to employ approximately 1.5 to 2 people per route.
Do FedEx route owners get benefits?
As the owner of a FedEx route, the management of the operation and employees is done at your discretion. While contractors are not required by FedEx to provide benefits for drivers, they do play an important role when it comes to keeping your team happy and motivated to continue working for you.
How profitable is a FedEx route?
Profit margins for a FedEx route business range from 15-35% depending on the portfolio of routes, with long-distance linehaul team runs being the most profitable. Many FedEx Ground contractors start their businesses in this industry with P&D routes.
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.
How can routeroute consultant help you buy a 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 considering to make a purchase or already under contract on a business. These are full-day education events, a crash course in FedEx Ground route ownership.
What is absentee ownership of FedEx routes?
When an investor chooses to purchase FedEx routes for sale at a terminal that is not close to the investor’s primary residence or place of business, we call the arrangement absentee ownership. How common is absentee ownership? The number of contractors operating a remote business is larger than you might think and is increasing rapidly.
Is fedfedex ground open to remote owners?
FedEx Ground is open to remote owners or investors, and their openness appears to be increasing with time. However, in order to receive approval in the purchase process, they are going to want to see that—despite your location—you intend to be an engaged owner.
How much does it cost to start a FedEx Ground contracting business?
Startup costs for the FedEx Ground Contracting Business Opportunity amount to about $25,000. There are no acquisition fees charged by FedEx. You may also need to have at least 4 trucks of your own.