Are FedEx Routes Worth It?

What does FedEx Ground owner operator make?

Average FedEx Ground Owner Operator Driver yearly pay in the United States is approximately $42,049, which is 81% below the national average..

Are routes a good investment?

1. A bread route provides a stable income opportunity. You can purchase a bread route for a lot less than what it would take to buy into most other business opportunities. Once you establish your territory and get a regular stream of deliveries going, then your income will become very stable.

How much does a FedEx driver make an hour?

How much does a Delivery Driver make at FedEx in the United States? Average FedEx Delivery Driver hourly pay in the United States is approximately $17.99, which is 18% above the national average.

How do I evaluate a FedEx route?

Find the Value of Your RoutesStep 1: Compile a Profit and Loss Statement. … Step 2: “Normalizing” the Profit and Loss Statement. … Step 3: Identity Shareholder Compensation. … Step 4: Determine Industry Multiple.

Why are so many FedEx routes for sale?

Investors that purchase routes for sale with some or significant room for efficiency improvements, can often get these routes under market value. Rarely, do we see contractors lose their contract with FedEx Ground. If they do, it’s a result of repeated safety concerns or customer service issues.

Can you finance a FedEx route?

How to finance your FedEx route purchase. There are a number of ways to finance a business acquisition. However, most FedEx routes that we have seen are financed using one, or all, of the following options: SBA-backed loans.

How do I get a FedEx delivery route?

To own a route with FedEx, you will have to sign a contract with FedEx and become an independent contractor. This means you are not an employee of FedEx and will not receive health insurance, a retirement plan, or other benefits from FedEx. Additionally, FedEx requires that your business is set up as a Corporation.

How do I get a FedEx delivery contract?

The qualifications for work as an independent contractor for FedEx Ground include: At least one year of commercial driving experience within the last three years; Have no record of positive alcohol or drug test; Have a current commercial driver’s license; and.

How much do contract FedEx drivers make?

How much does an Independent Contractor make at FedEx in the United States? Average FedEx Independent Contractor yearly pay in the United States is approximately $66,581, which is 74% below the national average.

How much can you make owning a FedEx route?

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.

How does owning a FedEx route work?

In a nutshell, route owners inherit an established book of business and need to purchase the equipment necessary to successfully do the work. When it comes to FedEx routes, individual owners set their workers pay, which can be hourly or daily. Within legal and FedEx guidelines, the owner sets the wage and frequency.

Do FedEx drivers buy their routes?

No FedEx supplies the truck. Fed Ex Ground is a company where different people own the route and the driver works for that owner and pay. For the Express side of the business you work for the company and do not buy your route nor your own truck. If employed by FedEx Ground you do.