Financial Insights
Kylie Larson
Financing a FedEx Route: Don’t Be Afraid of ...

Don’t be afraid of using debt/leverage to buy these businesses. These FedEx routes for sale can sustain a higher debt load than what some other businesses allow. Typically, your finance source will require a down payment of 20% or more. With a 20% down payment you lever your business 4:1. You have 1 part down payment and 4 parts debt.

Linehaul Runs, Financial Insights
Annalee Mueck
Are FedEx Ground Linehaul Routes for Sale a ...

We talked extensively in past posts about the risks of FedEx linehaul routes. Now, let’s get into more detail about the rewards!

Financial Insights, Buy FedEx Routes for Sale
Annalee Mueck
How much does it cost to buy a FedEx route?

FedEx routes for sale can range in price dramatically. In the past year, we have seen opportunities range on the lower end at $299,000 to our highest priced listing at $5,390,000.

Our current portfolio of Active and Under Contract routes have an average list price of approximately $760,000.

Financial Insights, Buy FedEx Routes for Sale
Annalee Mueck
How Much Money Can You Make if You Buy a FedEx ...

While a very profitable business, FedEx route businesses do not generate profit margins of 30% or more. As you look to buy a FedEx route, look for P&D businesses with profit margins between 15 and 20% of revenue. These are healthy businesses!

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Financing FedEx Routes for Sale: How to Minimize Your Down Payment

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The standard minimum down payment for a conventional bank loan is 25%. For an average priced route ($850,000), you would need a down payment around $212,500. This is a hefty amount of cash on hand. Plus, we recommend holding back approximately $50,000 of additional liquid funds as working capital.

If you are wondering about options to minimize or reduce your down payment requirements, you’re not alone.

SOLD OUT! Route Consultant's FedEx Ground Summit

FedEx Summit.jpg

Update: The seats for our first Summit filled fast. We are thrilled with the enthusiastic responses from prospective investors! We hope to announce future Summits and other in-person events soon.

If you are interested in being on the waitlist for this event or in being notified about future events, please sign up for our notification list.

May 7, 2019 · Nashville, TN

A Learning Experience for Potential Investors

Interest and competition for FedEx Ground routes increases year after year. A look at the details reveal that FedEx Ground routes are a fantastic bet!

Because of this fervor we are experiencing a steep increase in the number of potential FedEx Ground route investors seeking guidance. To best serve highly interested investors, we are offering this content-rich summit: a crash course in FedEx Ground routes.

Key Summit Benefits

  • Content-packed summit covering the breadth and depth of a FedEx Ground route investment, plus content personalized to your needs and extensive time for additional questions

  • Led by an actual FedEx Ground route owner and logistics expert, Spencer Patton

  • Additional presentations and information from other industry insiders

  • Networking and one-on-one opportunities intentionally built into the summit schedule

  • Opening refreshments, group luncheon, and optional dinner out in Nashville

  • Centrally located in Nashville, TN at the Richland Country Club; easy access from I-65 and the Nashville International Airport (BNA)

  • If you use our brokerage to buy a FedEx Ground route, we will refund $500 of your summit cost at closing!

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How Route Businesses Pay FedEx Ground Drivers

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In our experience, the salaries and wages (payroll) in a FedEx Ground route business cost between 40 and 50% of total business revenue. This is the largest line item expense in your profit and loss (P&L) statement. It’s no wonder then that many prospective business owners want more details about how drivers get paid.


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How to Conduct Due Diligence on FedEx Routes for Sale

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As you consider buying FedEx Ground routes for sale you need to know that these businesses are structurally simple and niche. What do we mean by that?

If you know what to look for, conducting due diligence on a FedEx Ground operation can be straightforward. However, if you approach due diligence with these routes as you would a more traditional business for sale you are going to miss key flags.

Before You Buy: 5 Questions to Ask About FedEx Routes for Sale

When you like the looks of a route for sale: ask these questions next:

How comfortable am I with the presented financials? What is the Listing Multiple telling me? What is this business’s ISP compliance and overlap status? Does this business meet my involvement preferences? What is the current quality of the fleet and how will that impact future business revenue and expenses?

Financing a FedEx Route: Don’t Be Afraid of Debt to Get Started

Don’t be afraid of using debt/leverage to buy these businesses. These FedEx routes for sale can sustain a higher debt load than what some other businesses allow. Typically, your finance source will require a down payment of 20% or more. With a 20% down payment you lever your business 4:1. You have 1 part down payment and 4 parts debt.