Buy FedEx Routes for Sale

Buying a FedEx Route? Understand Why Contractors Sell

FedEx contractors cite many reasons for selling their FedEx routes: they are ready to retire, spend more time with family, or simply get a change of pace.

At the current moment, however, there is another reason so many contractors are selling their FedEx routes: FedEx is currently undergoing major changes to make the business more efficient and profitable.

How to identify high growth areas for your next route purchase

Many new investors want to focus their search in on areas that also have high population growth. Population growth does contribute to package growth. However, as we cautioned before, beware of route businesses in cities where outsized growth contributes to low unemployment rates and upward wage pressure. These can be expensive markets with substantial hiring challenges.

Planning on buying FedEx Ground routes in a metropolitan area? What you need to think about.

If you serve a metropolitan CSA you have unique factors to consider. To start, we find that in a strong economy it is more difficult to hire drivers in cities where there are many employers and unemployment rates tend to be low. However, because of the higher wages and deeper pool of talent, route businesses in metropolitan areas have the opportunity to secure smarter, highly capable employees.

Are FedEx Routes Good Investments?

Although it feels as if our world is already dominated by e-commerce, the market is not nearly done growing! We predict the e-commerce expansion to rise steadily for the next ten years. The total e-commerce volume will be so significant that we believe there will be enough business for all the current logistics players to sustain themselves and for new players to enter the market and thrive.

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

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.

How to Conduct Due Diligence on FedEx Routes for Sale

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.

Top 5 Questions to Ask as you Search for FedEx Routes for Sale

These Answers to These Questions Can Make or Break Your FedEx Ground Investment:

How much business can I afford? How involved do I want to be with the day-to-day operations? What sort of returns do I expect from my investment? What are my long and short term goals with the business ?

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?

FedEx Routes for Sale + Details on FedEx Ground Routes

FedEx Ground routes run Monday through Friday. Ground routes deliver primarily to commercial businesses and the packages tend to be heavier than residential packages and require larger trucks. Because deliveries occur to commercial locations, there is less seasonal variability in FedEx Ground routes and that can make planning your staff and resources simpler.

Why You Should Buy FedEx Routes for Sale from Route Consultant

We hope you’ll consider using Route Consultant as your consultant or broker in the process. We are FedEx brokers and consultants with actual FedEx contracting experience. We have experience in Home Delivery, Ground, and Linehaul routes. And our team has worked across the United States managing a fleet of over 250 trucks and a staff of over 200 drivers!