Purchasing a FedEx route can be confusing but it doesn’t have to be. Because Route Advisors is here to simplify the process and walk you through every step of the way. From identifying available routes and determining their value to finding financing, Route Advisors is committed to providing the best customer experience in the industry so you can buy with confidence.
We’ve been there. We’ve run our own businesses and have a background in customer service so we know the challenges business owners face. We’ve also bought and sold our own FedEx routes. At Route Advisors, we offer you the benefit of our personal experience as well as the kind of expertise that comes from helping more than 110 clients successfully close on the sale of more than 897 routes.
One of the biggest hurdles in buying a route is getting though the FedEx approval process. Fortunately, Route Advisors has a thorough understanding of what it takes to keep your application moving – from the best times of year to apply to ensuring paperwork is filled out correctly and submitted on time. We also stay up to date in real time with the constantly changing requirements buyers are required to meet.
Curious about the benefits and challenges of owning and running a FedEx route? Want to know if owing a FedEx route is right for you? Need help securing financing? Route Advisors has built strong relationships with a variety of knowledgeable, trustworthy independent consultants who can provide you with answers to these, and many other, questions.
Our EXPERT purchase process includes expert advice on the valuation and confidential presentation of your business so that buyers understand its value, getting your listing seen by as many potential buyers as possible, vetting interested buyers, walking them through FedEx approval, and getting you to closing as quickly as possible. Route Advisors’ proprietary sales process is simple, yet extremely effective. Since 2014, we’ve helped more than 110 customers successfully close sales for 822 FedEx routes in the United States and Canada.
Michigan’s freight economy still runs through the automotive supply chain, and that shapes the commercial side of a route business here. Detroit, Grand Rapids and the I-96 and I-75 corridors carry most of the density, and the Ambassador Bridge at Detroit is one of the busiest commercial crossings on the Canadian border.
The state is geographically awkward for route operators: the Upper Peninsula is a separate market in practice, and northern Michigan territories carry stem miles that southern ones do not.
FedEx route businesses are priced on cash flow, not revenue and not route count. Across the route businesses Route Advisors currently has listed, asking prices run from 1.6x to 6.0x annual cash flow, median 3.6x; FedEx Ground P&D packages specifically run 2.7x to 5.4x.
Michigan’s minimum wage is $13.73 an hour, mid-range nationally. The variable that matters more is seasonality: lake-effect snow, sustained winter conditions and the resulting vehicle wear and absenteeism are measurable costs, and a buyer should ask how January and February perform rather than accept a full-year average.
Commercial concentration is the second question. A territory anchored by automotive suppliers carries a risk profile a residential route does not.
Route Advisors has no published listing in the state at present, and that is worth saying plainly. It does not mean nothing is available: a significant share of what we broker is never published, because sellers still operating cannot have their drivers and station manager learn the business is for sale. Tell us the market and the budget and we will tell you what is genuinely in play.
Contact Route Advisors for a free consultation.