Common Questions & Answers About Purchasing FedEx Routes

Do you want to start your own business? If you have worked at all in the delivery industry, you know how hard it is to work for someone else. But you also know how profitable the delivery industry can be. But starting your own delivery business puts you in competition with some of the largest names in the business.

However, what if you could partner with FedEx to own your own route? The good news is that you can. But before you put invest the money in purchasing a route, you might have some questions. Here is a list of some of those questions, and the answers that will help you determine if a FedEx route is right for you.  You can also find more information from Route Tycoon.

Are you ready to partner with a trusted brand to grow your very own business?

Can I purchase a FedEx Route anywhere in the United States or Canada?

The short answer is yes, if it’s for sale. FedEx does have a website where you can find routes available for bid, but it is almost always easier to go through a broker. They help you not only find the right route for you, but they also can help you understand the value of the route and help you negotiate what comes with it (including the truck and other equipment).

You can (and should) also ride a route before you buy it so you don’t regret your purchase.  Besides, how could you own the route if you have no idea where the route is going to everyday?

In fact, we have client purchase routes across borders, they purchase routes in the US or Canada as a way for them to obtain Visa.  Please check with your Immigration attorney or reach out to us (www.routeadvisors.com) for more information. 

What are the startup costs after purchasing FedEx routes?

Once purchase more than one FedEx route, you’re going to need two things: vehicles and people. You are going to have to buy your own trucks and hire your own drivers. Those drivers must also be approved by FedEx even though they are your subcontractors.

You also need to ensure that your new fleet has the right decals, branding, and software to represent FedEx at the highest level. This is another place a broker can help. Often trucks are included in the sale of a route, and you may be able to hire the driver who is already running that route and is familiar with it.

If you’re purchasing FedEx routes are you employed by FedEx?

No, instead you are what is known as an independent contractor. This means that while you operate under the umbrella of FedEx and reap the rewards that come from working with an established brand, you are not eligible for health insurance, retirement options, or the other benefits that come from being a full-time employee.

Just like any other entrepreneur who owns their own business, you need to provide those things for yourself. It’s about more than just driving and route and getting paid. It’s also about setting up and running your own business.

Do you have set hours?

Not exactly, no. It’s your business, so your hours are up to you. While customers might have requests for certain delivery and pickup windows, it is entirely up to the owner of the route to decide when packages get dropped off and picked up in any given area.

That being said, keep in mind that businesses and others do have certain expectations. You wouldn’t open a breakfast restaurant at 11 a.m., so don’t expect to deliver packages to a business at midnight. But you don’t have a clock in and clock out time, just an obligation to server your customers to the best of your ability just like in any other business.

Don’t want to feel burdened by a 9-5 job? This is just the gig for you!

Do you need to have a background in logistics?

FedEx does have to approve you if you choose to buy a route. There will be a background check and an evaluation of your experience. However, you do not need to have experience working within FedEx or elsewhere in the logistics industry in order to purchase and operate your own route.

There are plenty of other ways that you can communicate your experience and passion beyond your resume, and often previous experience running your own business can make a real difference.  Route Advisors will guide you through the FedEx interview process and you will benefit from our extensive experiences!

Do I have to deliver packages on my route?

No, not necessarily. While owners are more than welcome to work their routes, so long as your staff pass FedEx’s driving safety test, you can manage your routes remotely and leave the driving to them.

This does come with its own set of risks. If you have faith in your staff to get the job done unsupervised and handle any emergencies that arise, it is possible. Many multi-route owners drive one route and hire drivers to handle the others and cover vacations, sick days, and time off.

Whether you want to deliver packages yourself or oversee things from afar, you can easily have it both ways.

Are there different types of FedEx routes?

Yes. There are essentially two basic types of routes that you can purchase from FedEx.

The first is “FedEx Pick-up and Delivery Ground” routes, which involve deliveries to both residential and commercial addresses. There are also pick-ups, usually at businesses, but sometimes at residential locations as well. These are the trucks you see driving around town delivering packages. Note that these are not FedEx Express routes. Those drivers and routes are handled differently because of the need for set schedules.

Secondly, you can also purchase “FedEx Linehaul routes.” These are for the owners and drivers of tractor trailers, and can be dedicated, set schedule routes, or undedicated routes that are more flexible.

A good broker can help you determine the route type that is right for you.

Can you own multiple FedEx routes?

Definitely! In fact, owning multiple routes is a great way to grow and develop your business. Typically, owning up to 5 routes is manageable for a single owner, and can result in a great return.

There is some risk, and more routes means more trucks and drivers, and a lot more responsibility. However, with that comes profit. Accruing more FedEx routes can be the savviest investment you make!

Is it easy to secure financing when purchasing FedEx routes?

It all depends on who you ask. While traditional banks might be unwilling to loan you the required capital due to a lack of collateral, there are other financing options available to buyers of FedEx routes; for example, SBA lenders.  We can help you understand the options and put you in touch with the right lenders at the right time so you can own your FedEx routes without the large cash down payments!

This is often why new owners purchase a single operation and expand their business from there. Remember, working with a professional to answer your questions will help you move toward purchasing the right routes first, and getting the financing you need.

How much does the average FedEx route earn?

Depending on certain criteria, the average P&D route can expect to profit between $25,000 – 50,000 per year. This will depend on the location of your route, the condition of your trucks, the stability of your workforce and any incentive bonuses that come from being a class-act owner.

This also depends on your work to grow your route, any vehicle or equipment purchases and repairs, and even the price of gas. A broker and other experienced owners can show you ways to minimize these costs and have the most profitable routes possible.

Purchasing FedEx Routes: Your Questions Answered

Starting a business can be a bit overwhelming, but if you are willing to learn quickly, work hard, adapt to changes as you go, and invest in yourself, a FedEx route may be the right choice for you. Contact us today and learn about riding a FedEx route to see what owning one is all about.

If you believe in your ability to start a business, while having the backing of an international brand, you can sleep well knowing that your route is in good hands – your own!  Please visit us at www.routeadvisors.com and see how you can own and run your own profitable FedEx Route business. If we didn’t answer all your questions or you are ready to explore route ownership, get in touch! We’re happy to help.

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