Is Buying a FedEx Route a Good Investment?

Category: Best Practices

Like home ownership, owning a business is a dream that many Americans share.

However, along with the many advantages of becoming a business owner—including greater independence and flexibility, the opportunity to build a strong team, and the chance to carve out a financial future for you and your family—there is often a certain amount of financial risk that comes with starting your own small business.

The good news? Owning a FedEx route business is one of the smartest, most financially stable investments you can make. Your initial startup costs are minimal (essentially just the price of the routes, your vehicle fleet, and hiring and outfitting your employees) and after that, FedEx routes can show an average increase of 15% per year.

Not only that, but your business is backed by the reputation and reliability of an industry giant. Plus, you never have to worry about marketing costs, and the service you provide is one that people will always have a need for.

Below we’ve highlighted several of the benefits of owning a FedEx route business. 

  • FedEx contractors are paid weekly, which greatly minimizes working capital requirements since you are not waiting on receivables.
  • The recent surge in online shopping that began during the pandemic is only expected to continue, meaning even greater opportunities for revenue.
  • And speaking of consistent revenue, the stability of owning a FedEx route allows owners to keep a watchful eye on staffing and equipment needs so that they can plan and budget effectively.
  • As we mentioned above, the FedEx brand comes with a long history of growth and success. And because of its diverse business operations, it is not overly reliant on any other entity. For example, even if Amazon experiments with new technology such as drone delivery, the FedEx business will not be greatly impacted. (FedEx only handles only about 3% of Amazon’s shipping business.)
  • Being part of the FedEx family also gives you access to the flexibility, networks, and leadership that has helped the ship stay afloat during difficult economic times. The company has historically overcome potential challenges with ease, including rising fuel prices, the global economic crisis in 2008, and, most recently, the global COVID-19 pandemic.
  • With the organic growth in some FedEx areas in excess of 10% year over year, the company rewards successful contractors with additional routes.

Ready to buy? We’re ready to help.

The time is right to consider purchasing your FedEx route business through an experienced broker. With continued growth and the backing of an internationally recognized organization, buying FedEx routes is not just an excellent investment; it’s the first step toward the financial freedom and flexibility you have been dreaming about. Click here to view available routes in your area, or contact KR Capital today to get started.