Currently, USPS completes the last mile delivery of these SmartPost packages. However, USPS and FedEx Ground are modifying the agreement so that FedEx Ground will roll out SmartPost last mile delivery across the United States. Most FedEx Ground territories are going to see a significant volume increase—we predict a jump of 25-100% in most markets!
Update: We were thrilled by the enthusiastic response to our May Summit. We sold out four weeks in advance and had a long waitlist. Because of this, we are proud to announce an additional Summit date in June.
June 21, 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!
Terminating a contract can provide serious service interruptions for FedEx Ground customers and is a critical issue. FedEx Ground aims to provide seamless delivery service for all areas of operation.
This being said, it is rare for a contractor to lose their FedEx Ground contract. Further, contractors almost always receive opportunities to resolve issues in advance of a contract termination
You will often hear us (and others) note that FedEx route businesses are tax-friendly investments. What do we mean by that?
These businesses include substantial numbers of vehicles that you are able to depreciate over time. The vehicle depreciation in FedEx route businesses allows you to offset the revenue stream from the business.
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.
Based on industry averages and our experience in the logistics industry, this calculator helps you focus in on your target route price.
You can use it to explore your options based on down payment or based on your expected take-home pay.
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.
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.
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 ?
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?
Fact: the person coming to your door driving a FedEx Ground truck and wearing a FedEx Ground uniform is NOT a FedEx Ground employee.
Our current portfolio of Active and Under Contract routes have an average list price of approximately $760,000.
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.
You can buy, operate, and sell the routes that move FedEx packages from one location to the next. FedEx routes have a long history of solid profit margins and FedEx as a company continues to outpace performance expectations. There’s much to love about this type of investment!
It’s finally here! Our New FedEx Contractor Checklist has been a hit for some time now, and the complementary manual is now ready for download.
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!
Are you having trouble getting a response from a route broker? Or, are you finding that every listing that peaks your interest is under contract before you ever even make contact with the broker? In this industry, there are 20 prospective buyers for every FedEx route for sale listing you see. As we noted previously, the market is hot!
It should come as no surprise to you that the best and easiest way to find FedEx routes for sale is online. However, not all online listings are created equal.
If you are an investor ready to chart your own business path, we think you should give investing in FedEx routes serious consideration. You will be poised for success in the route industry if you bring a few of these traits and know-hows along to the investment…
As you evaluate potential FedEx routes for sale as an investment, you need to consider the financial implications of each route’s geography. Routes that are more rural or more urban have specific challenges and benefits.