Are FedEx routes worth it?

FedEx routes can be highly profitable, but they may not offer the full potential profitability of starting a business from scratch. If you invent something new or capitalize on a new market, you could conceivably make more money that way.

How much can you make owning FedEx routes?

A route owner can make an annual profit of $30,000 to $50,000 on a single route, he said. Each business has a unique contract with FedEx that outlines the terms of how they’ll be paid. FedEx usually pays route owners based on how many stops the truck makes and how many packages the driver picks up and delivers.

Is owning a FedEx store profitable?

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

Can you finance a FedEx route?

If you are considering financing an operation of FedEx Ground routes, the two most common types of loans are a Small Business Association loan and a conventional loan. However, you can also use a creative financing approach, which can significantly expedite the selling process.

Whats it like owning a FedEx route?

One of the most significant advantages of owning a FedEx route is that the business will have a reliable income. FedEx is widely used in the United States and is one of the leading logistics engines for package delivery. Keep in mind that, while the income is reliable, it also has seasonality to it.

Is buying a route a good investment?

If you have some money to invest and time to work, then a bread route can be a fantastic investment. You’ll have the opportunity to earn a steady income while building the value of your accounts. This combination of circumstances can lead to a significant profit margin in time that you can pocket.

Can you get an SBA loan for FedEx routes?

FedEx routes are eligible for SBA financing and have an extremely low failure rate.