There are two distinct types of FedEx routes, and if you are considering buying a FedEx route, it’s important to figure out if you want to purchase pick-up and delivery (P&D) routes or a linehaul run. There are important and significant difference between FedEx P&D routes and FedEx linehaul runs.

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.

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 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!

Just as you will evaluate a listing and a seller, a broker will be evaluating potential buyers. Does this investor understand what they want and how this investment works? Many investors are kicking the tires on FedEx Ground investments these days and brokers are inundated with basic inquiries. Once you establish yourself as an educated and serious investor, brokers will be more likely to reach out to you when a strong opportunity becomes available.

As you look to buy a FedEx route, look for P&D businesses with profit margins between 10-25% of revenue. These are healthy businesses! While a very profitable business, FedEx route businesses do not generate profit margins of 30% or more.

When purchasing a FedEx Ground operation, you should always be prepared to have your manager give notice. Your manager will not be contractually obligated to you, so it is important to secure a window of support from the seller in case you lose your manager.

Difficult days on the job are part of every job. They can feel particularly stressful for your drivers. And they have options to go elsewhere if they are stressed too often. Be sure you have an atmosphere where team members feel respected and can be open with management about their concerns.

Drones are sexy. We get it. The idea of drone delivery feels like the future. As fun to think about as drone delivery is, it’s not a realistic mode of transportation for the type of packages FedEx Ground delivers

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.

For the vast majority of FedEx Ground contractors, payroll is the largest operational expense. It’s no exaggeration that how you pay your drivers and manage your payroll expense will have a material effect on the profitability of your business as well as the productivity of your team.

FedEx Ground routes have predictable revenues with few variables. It’s what makes these businesses such solid investments!

If your revenue is predictable with few variables to significantly change it, then how do you impact your Net Operating Income (or take-home pay)? You focus on Total Expenses.

There are two types of FedEx Ground routes: pickup and delivery (P&D) routes and linehaul runs. If you are investing in FedEx Ground routes for the first time, we highly recommend P&D routes. Why? P&D routes are easy to learn, less expensive than linehaul, and have a consistent revenue stream each month.

As we continue to face labor shortages, contractors struggle to recruit drivers for their operations. To help combat the challenges of finding drivers, we have partnered with Bright Flag Recruiting. One of the biggest challenges contractors face when buying or operating in a market is determining what they need to pay to be competitive when recruiting and retaining drivers.

What many contractors don’t know, however, is that there is a strong argument for using full-service leases in some cases. If you have routes that travel 35,000 miles a year or less, a full-service vehicle lease may be the best option for you.

Fuel cards are the way your drivers will pay for fuel (if you enroll in a fuel card program). These cards look like a credit card, but there are important differences between a fuel card and a credit card.

Every day, Route Consultant’s FedEx routes for sale receive a record number of inquiries about listings via our website and hotline. Our team, and other vendors in this space, are inundated with requests and questions throughout the day. SBA lenders are in a similar position, particularly right now. Our goal is to prepare you to get to the front of the SBA lending line.

Electric vehicles (EVs) are all the rage in today’s consumer market. Many cities and states, particularly on the east and west coasts, are edging ever closer to lowering emissions and adopting a more electric vehicle friendly environment. FedEx Ground has vowed to be fully carbon neutral by 2040. EVs will certainly be a big part of that initiative.

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.

Did you know that 99% of all of our transactions are asset purchase agreements (APAs)? When purchasing a FedEx Ground business, it’s imperative to be aware of the type of sale you intend to make.