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fedex route...

Hello everyone,
I am looking to buy a fedex route. I wanted to know the pros and cons for the ground route. What kind of expenses are expected? How much they reimburse for gas, maintenance or anything else? What kind of bonuses do they give out? Does fedex require to change vehicle on certain mileage? Do they regulate contractors for hiring drivers, etc?
I see alot of contractors selling their route, seems like there is a reason so many are for sale. Any other info will greatly be appreciated.

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Jun 13, 2017
Kyle Rohner
KR Capital LLC
Multnomah County, OR

Our firm specializes exclusively in the sale of FedEx ground, home delivery, and linehaul runs and I can tell you that these are absolutely fabulous businesses. A couple things you might consider as you evaluate whether to purchase a FedEx business:

1.) When you buy a business, the first thing you should ask yourself is, "How will I get out?" Coming from a more traditional M&A background where I sold businesses of all kinds, I have never seen higher buyer demand than that of FedEx routes. This is important because if you get into the business, you know there is a strong buyer market should you decide to sell.

2.) Minimal transition risk. In more traditional business sales, it is vitally important that the seller successfully help transition the customers to the new buyer. This isn't always an easy task, particularly given that the customer has no idea who the new buyer is or whether they will receive the same level of service. With FedEx routes, the customer transfer is automatic. Once purchased, you will own the service areas and so any delivery destined for your service area is yours by default.

3.) Weekly Pay. FedEx pays its contractors every week (direct deposit) for the prior week's work. This is a huge benefit to the contractors because it effectively eliminates most working capital requirements. There is no danger of unpaid receivables or late customer payments because all of your compensation comes directly from FedEx.

There are lots of other nuances (most good, some bad) that are associated with the FedEx business. If you're interested in more information, please feel free to reach out to our firm via our website at www.KRRouteBrokers.com.

Sep 17, 2014
Tony DiNitto
Route Tycoon Inc
TX

I know this question is older, but for the benefit of other people looking for these answers I'll go ahead and answer them based on the IC structure (some states are the ISP model though and may be different).
1) Expenses after receiving your paycheck from FedEx are gas, vehicle maintenance, and employee (if applicable).
2) I wouldn't think of being reimbursed for gas, that "reimbursement" is already part of your paycheck. What that does is allows you to not stress out about the cost of gas since the reimbursement goes up or down in accordance to the current gas prices. Just realize you're paying for your gas at the end of the day. They do not reimburse maintenance (or anything else).
3) Bonuses are typically your multiple route bonus (for owning multiple PSAs/routes), a monthly CCS bonus that varies depending on the route type, and Christmas/Peak Season bonuses.
4) You don't have to change a vehicle on a certain mileage. However, a vehicle that breaks down too frequently will be a headache to both you and the terminal managers and they could do things to twist your arm to change the vehicle.
5) There are strict regulations on hiring new drivers - background check, drug test, verifiable driving experience (this can be detailed and varies often).
6) You actually don't see a lot of routes for sale. It's an extremely small percentage of the amount of routes out there - literally 1000's...if you see 50 routes in the America for sale that's 0.05% attrition and that's a conservative amount (it's probably even lower). People love their routes. You can find out more about routes at www.RouteTycoon.com.

Aug 5, 2014
ROUTE BROKERS®, INC. * * * * * * * * * * * * * * * * * * F R E E * CONSULTATIONS

Hi Daniel,

In answer to your request, we would be pleased to assist you in your search for a FedEx route. We are Brokers that specialize in the Route Distribution Business. Some examples would be Snapple, FedEx, Boar's Head, Pepperidge Farm, etc.

Our firm, RouteBrokers.com has the largest selection of ESTABLISHED distribution businesses in the United States. These are NOT Franchises. We currently have NATIONWIDE over 250 businesses for sale. We have been in business for over 25 years and have sold THOUSANDS of businesses.

Our goal with any client is to develop a long term relationship. You can only do that if you listen to your clients and assist them in moving through the maze of legitimate questions needed to be answered before a business transaction can be consummated. Most of our new clients are referred to us by our existing clients. We would be pleased to work with you and truly believe that soon you will be referring new clients to us also.

Look forward to hearing from you soon.
Ken Sussman
Route Brokers, Inc.
516-482-8250
1-877-4-ROUTES (1-877-476-8837)
www.RouteBrokers.com

Jun 18, 2010
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buying either one is good/ the pay you to load deliver signatures/bonusesonly expense you have is wearntear on truck let me know of more questions billyharper06@comcast.net

Jan 10, 2010
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Delaware County, PA

I have done this work for 2 years in Chicago area ( northbrook) but if you are not going to do at your own.......don't buy it first of all, second if you can not do more than 100 stops a day , you will not really make money and then usually fed ex decide what zip code and streets should go on what truck , you will have designated area but still always something out of your way... third con you have to deliver to the resturants before 11 Am , otherwise you are screwed up... So, if you need more cons... I have it........Pro's not much..... you can make about 60k a year but have to run the route and then you have pay everything out of it... all maintenace is yours, gas and everything.....if your truck breaks down you need to run a route....get rental truck.......Sorry I don't mean to scare but Ground is not really a FEDEX.... you will be better off working for FedEx itself pays about $20-24 an hour....but they dont' hire easy..thanks

Jan 3, 2010
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Monmouth County, NJ

I meant to much to discuss in a forum post

Dec 29, 2009
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Monmouth County, NJ

I formed a trucking company and am now servicing Fedex Home Delivery. Ground is a different animal than home delivery. Lots to discuss in a forum post. There are pros and cons in every business. There are headaches with every business. With the right route/location, one can easily gross over 6 figures with a very good net and ROI. The key is to eventually own more than one ( as you would want to do if you owned a franchise or pizzeria, etc ) and become more of a manager and let the routes run themselves.

Dec 29, 2009
Jon Holmquist
Edgemaster Model 400 sharpener
President
Marion County, OR

Hello Daniel, where are you looking for the route and I guess I would ask Why? You know that they have surveyed everything so that you would be buying a job with you handling the headaches not them. Look at getting a franchise that does many of the same things with the headaches already worked out and with you having the benefit of owning the business. Or just get a job with a delivery service and let them take the deductions for all expenses. Doesn't sound like the best deal when other things work better. Check out our franchise and then several others first. Thanks Jon at Edgemaster Mobile Sharpening.

Dec 28, 2009

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