Interested in a FedEx Franchise? Not in The U.S.
Have you ever thought about getting your own FedEx franchise? Turns out, in the United States, these don’t exist! Instead, FedEx sells routes to independent contractors who in turn service that route.
Let’s dive more into what that means for you…
Franchises Vs. Routes
Having a route is completely different than having what you might consider a FedEx “franchise.” When we think of franchises, in the traditional sense, there is a lot of risk that comes from setting up shop in a new area, with a new concept, to see if it will pan out.
Instead, FedEx routes have been long-established – they have been around since FedEx’s inception, and rely on infrastructure that previous exists (the roads, of course).
Compared to a franchise, which carries with a great deal of risk, FedEx routes are comparatively less risky. Why is that? When you purchase a route, you are purchasing a pre-existing audience of people who live along that route and would be serviced in that area.
As the population in the US grows, routes not only grow in density, but new routes crop up in order to be serviced. The demand itself, in an era of advanced logistics, is even more ingrained, rather than your typical franchise (think: food fast) where demand for your product might wain over time.
When you think of franchising a business, typically you need to consider a pretty steep amount of overhead. This typically entails staff, real estate, renovation and construction costs, product, and machinery.
When it comes to FedEx routes, though, your main costs are going to be your truck maintenance (and the trucks themselves), your gas, and your employees. The overhead is lower, which also harkens back to our point about decreased overall risk.
FedEx Franchise & FedEx Business Partners
When you run your own FedEx route, you need to think of yourself as more of a small business. As opposed to a franchise, which may have to answer to a larger corporation, servicing your own route relies on FedEx’s brand name, but you make your own rules and treat it like your very own business.
Ultimately, this results in greater autonomy and a greater sense of ownership when you succeed in generating revenue from your specific route.
Get Your Own Route
Now that you know more about the differences between FedEx routes, and how they essentially do not add up to a FedEx franchise, is it time you started considering getting your very own? There are plenty of routes for sale, offering you the unique opportunity to be your own boss – while relying on FedEx’s well-established and well-regarded image.