Owning a Franchise vs. a FedEx Route

There is an interesting distinction to be made between owning a franchise and owning a FedEx route. There are similarities, but many more differences.

First of all, FedEx does not offer franchises in the United States at least.

When it comes to routes, instead you actually purchase your own route, which is essentially a small business. Part of that business is the FedEx infrastructure, including the terminal where you will load and unload packages. The rest of your infrastructure already exists roads, parking lots. Loading docks, and more.

A FedEx Route Is Your Business

When you buy any kind of a franchise, there is typically a franchise agreement that you sign. It establishes certain rules and policies that you must follow, suppliers you must use, and certain non-compete clauses and other legal red tape.

Instead, when you buy a FedEx route, you are buying your own business. Essentially, you sign a contract with FedEx agreeing to certain terms of service and boundaries. Other than that, you use your own trucks, your own supplies, buy your fuel wherever you want, and can even grow and spit your routes within your territory.

Typically, you hire your own employees, and can even keep them as independent contractors just like you are.

FedEx is A Trusted Business Partner

When you buy a FedEx route, you are partnering with one of the must trusted logistics companies in the world. Not only that, but you are starting with a group of already dedicated, brand loyal customers in a certain area. You don’t have to worry about marketing and building trust in the way a traditional franchise has to.

Instead, there are already residents and businesses who use FedEx services. You are just there to provide them quality customer service, but you have a lot of freedom when it comes to how you do that. You only have to answer to the larger FedEx corporation in a limited number of ways.

You can actually set your own schedule to a certain extent, make your own rules and company policies, and treat your route like your own logistics and delivery business. At the same time, FedEx has proven formulas that have worked for other route owners, things that are easy to duplicate.

Low Overhead and Risk

Here is where things can get a little tricky with a franchise. Not only do you have to operate under someone else’s guidelines and share profits with them, but you also have a great deal of overhead, from rent to utilities to maintenance and cleaning. There are a lot more employees involved, and all the costs that go along with that.

That’s risky too. Many franchises don’t make any profit at all in the first year. Many even operate at a loss for a while. It takes a long time to develop a good ROI. With a FedEx Route, you can start earning right away, and how much you earn is largely up to you. You buy your trucks, whether used or new, manage your own staff if you own more than one route, and have many more choices for supplies, fuel, and more.

This low overhead and reduced risk make a FedEx route an appealing business investment. Your routes will grow, and new ones will develop as the population in your area gets denser. New routes created in the areas around you may be ones that you can purchase from other route owners. As FedEx creates new routes, they may come up for bid so that you can acquire them.

The Big Advantages of a FedEx Route

Think about the reasons you want to work for yourself and what you really want out of owning your own business. If you are tired of working in a corporate world, under someone else’s rules, a franchise might not be that different for you. Sure, you will own it, but a certain amount of control will always remain with the parent company of your franchise.

But if you really crave being independent and owning your own business, a FedEx route may be a much better answer. Without the risks and costs of setting up your own business from scratch, you get the support of a large company and the brand recognition and trust that comes with it without some of the other baggage that makes owning a franchise so challenging.

Ready to take the plunge and own your own business? Is a FedEx route the right choice for you? Contact us today to find out more!


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