If you sense this is a fantastic investment for you, you are likely searching now for the right business to purchase. FedEx will not consider you for purchase of a route until you've been approved by their safety department to drive for them, pass a background check and drug screen, and get DOT certified. Truck repair and maintenance numbers vary widely based on a businesses investment and efficiency strategy, but new contractors can expect fleet maintenance expenses to account for approximately 11 to 15% of revenue. When owners want to sell, many use a broker since the statistics prove that sellers will typically get more even after commission than if they didn’t use a broker (this isn’t always the case, as explained in why your broker sucks). All the sales efforts for routes are performed by their own corporate advertising departments and have corporate sales reps to establish new large clients. You must then work for a minimum of 1 year either as a temp or for a contractor. One route analysis based upon up to 52 weeks of settlements you provide. Get emailed when a new article is published: Routes 101 – The fundamentals of buying a route. Throughout the course of a typical week we hear similar questions over and over: are FedEx routes a good investment? ... which may be more costly to maintain and carry a higher safety risk. Understanding the known and unknown risks of contract changes (IC to ISP conversion, Overlap compliance, etc), Discovering the typical effects of ISP negotiations, Determining the potential future and current value of a route bundle, Understand typical negotiation amounts and tactics specific to a route bundle, Financing options for routes, growing your business rapidly, Determining an estimated profitability of a route based from owners profitability claims, Helping better discover whether routes are even a good fit for you, Investing in multiple routes and understanding the risk of long distance route management, How to find the hidden costs of routes many sellers “forget” about, Do FedEx routes really make the amount of money they claim to, How much FedEx ground routes pay vs FedEx Home Delivery routes, and why the answer is becoming irrelevant soon, Why are people really selling their routes and if that question even really matters, If routes are so great, why are so many FedEx and other truck routes for sale, Better determining if a semi-absentee route can actually be successful long term, Knowing when a highly profitable route could be a disaster to own, Structuring your acquisition to help you potentially and immediately increase your resale price. Help determining if FedEx is a good fit for you and/or exploring financing options for routes. all pay a premium to have bread companies deliver bread and stock it on their shelves. Multi-page report of a potential value of a route. It’s not just about being a contractor and having knowledge of this industry – it’s about knowing the brokers, knowing which types of people routes are a good fit for, knowing terminal managers behaviors across the country, and knowing numerous contractors that have the inside scoop in differing markets across the country. Pepperidge Farm, Mission Tortilla, Snyders-Lance, Flowers (Natures Own, Tastycake), Bimbo (Sara Lee, Arnold, Orowheat). We recommend working with a respected, well-known industry consultant to model revenue and expenses before you purchase any business advertising eye-popping profit margins. Be careful of claims with figures far outside the ranges of other listed businesses. Usually after seeing only a few recent paychecks from the company, you can realize that there’s probably not too much variation beyond those checks. If you are looking at FedEx linehaul operations, consider that healthy linehaul businesses may demonstrate profit margins between 20 and 45% of revenue.

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