sell business

Why Do FedEx Contractors Sell?

If you have been looking to purchase a FedEx route, you might be wondering why owners sell in the first place. Buying a FedEx route is all about making an investment in yourself, your work ethic, and your future. That is why it is important to know why people sell in the first place.

So, why would an investor look to sell their route? Consider the following:

Ownership Scales

As of late, FedEx has released new requirements for scale amongst contractors. This means that no one contractor, with some exceptions, may own more than 15% of the routes operating out of a single terminal. For this reason, some contractors may be looking to sell their routes which push them outside of this allowance – meaning that they are still profitable but clustered too closely together.

Overlap Requirements

Owners have also been alerted to the fact that a new mandate entails that route owners must run both home delivery and ground routes for a single territory. For some owners, this may be more work than its worth (especially those who are looking to retire in the next ten years). For this reason, many may look to sell in order to sell to someone more willing to take on this kind of workload.

Personal Reasons

In life, things happen which necessitate change. For many route owners, they may be looking to do something beyond working as an owner of a route that pushes them to sell. This could be lifestyle changes, retirement goals, or simply looking for a change of pace, many owners may look to sell not because they are losing money, but because they are comfortable enough to move on.

Buying A FedEx Route Today

Whenever you are considering purchasing a FedEx route of your own, try to do your best to understand why the current owner might be selling. It can help inform you whether or not you are making the right investment, and if you can run the route to its full potential (or even better).

Either way, there are multiple reasons why people sell, and as the business of FedEx changes some owners may not be looking to keep up (and instead may wish to cash out). In these cases, you may be able to capitalize on a strong route from an owner who simply wants to avoid the future. If you dream big enough, you can seize on that moment to propel your own business goals forward.

Posted by .