FedEx Routes: Common Q&A
Interested in purchasing your very own FedEx route? Before you put the money in to make an investment of this size, you might have some questions that need answers. This is the list of the basic questions that you might have when it comes to first getting started. From here, you should be able to determine if a FedEx route is right for you, and if you’re ready to partner with a trusted brand to grow your very own business.
What do you need to know before you secure your route? Here are the basics…
Can you buy a route anywhere in the United States?
Yes, if it’s for sale! While FedEx does have a website where you can find listed routes for sale, it is almost always better to go through a broker. These are professionals who can help you find the right route for you so that you can ride it before you buy it (and not regret it).
Do you need to have a background in logistics?
While your previous experience will play a role in whether you get a route, you do not need to have experience working within FedEx (or in the logistics industry) in order to purchase and operate your own route. While FedEx enjoys partnering with people passionate about logistics, there are plenty of other ways that you can communicate your experience and passion beyond your resume.
If you own a route are you an employee of FedEx?
No, instead you are what is known as an independent contractor. This means that while you operate under the umbrella of FedEx, and reap the rewards that come from working with an established brand, you are not eligible for health insurance, retirement options, or the other benefits that come from being a full-time employee.
Do you have set hours?
It’s your business, so your hours are up to you. While customers might have requests for certain deliveries, it is entirely up to the owner of the route to decide when packages get dropped off in any given area. Don’t want to feel burdened by a 9-5 job? This is just the gig.
What are the startup costs after purchasing your FedEx routes?
Once you own your FedEx routes, you’re going to need two things: vehicles and people. You are going to have to buy your own trucks, and hire your own staff in order to drive them, along with the additional costs of ensuring that your new fleet has the right decals, branding, and software to represent FedEx at the highest level.
Do I have to deliver packages on my route?
No, not necessarily. While owners are more than welcome to work their routes, so long as they pass FedEx’s driving safety test, you can also manage your routes remotely. While this does come with its own set of risks, it’s more about how much faith you have in yourself (and your staff) as a manager. Whether you want to deliver packages yourself or oversee things from afar, you can easily have it both ways.
Are there different types of FedExroutes?
We’re glad you asked because there are essentially two basic types of routes that you can purchase from FedEx. First, you have the “FedEx Ground” routes, which involve dedicated routes with set schedules (to both residential and commercial addresses). Next, you have what is known as “FedEx Custom Critical routes.” There’s no set schedule for these ones, and you must (as the owner) deliver them yourself because these packages require special treatment.
Can you own multiple FedEx routes?
Definitely! In fact, owning multiple routes is a great way to develop your business. Typically, owning 5 routes is manageable for one owner, and can result in a great return (as long as you are willing to stomach some risk at the very beginning). Accruing more and more routes can be the savviest investment you ever make!
How much does the average route make?
Depending on certain criteria, the average route can expect to make between $30,000 – 40,000 per year. This will depend on the location of your route, the goods being handled, and any incentive bonuses that come from being a class-act owner.
Is it easy to secure financing for a FedEx route?
It all depends on who you ask. While traditional banks might be unwilling to loan you the required capital, due to a lack of collateral, there are plenty of alternative lenders (and things like small business loans) which can help ensure that you get the money you need to start buying routes right away.
FedEx Routes: Your Questions Answered
These are some of the basic questions that most folks going into the business of buying FedEx routes need to have answered. Don’t forget, buying a route is just like any other investment, but with the added benefit of being determined by your ability to work. If you believe in your ability to start a business, while having the backing of an international brand, you can sleep well knowing that your route is in good hands – your own!