Howdy Ags, I've recently learned a little bit about purchasing FedEx Routes. Seems like they could be a great investment. It's a little scary that there are a lot of them for sale out there right now, so either people think now is a great time to sell, or they don't like owning them for other reasons.

Has anyone else ever considered doing this or have any knowledge about running this type of business?

Thanks!

Same question came up in TexAgs last year or so. Dig around

Okay, thanks. I figured it had been discussed here before, but my initial search didn't yield anything. I'll take another look.

Had a cousin that owned one in the Houston area til about 4 yrs ago. It was good enough to pay himself and his dad their salaries but there wasn't much left after that.

Thanks for the info. There's a lot to consider here but it appears managing the business comes down to being able to keep/hire drivers and maintain the trucks. The end game goal is growing cash flow and selling for a good multiple. I've seen some FedEx routes for sell with an absentee option that seems attractive and desirable. Would love to hear from others who have had experience with these or know someone who does.

I know a guy who bought 8. He thought it was going to be a mailbox business. He was sorely disappointed.

As mentioned above, drivers and trucks are your biggest problems. No shows, break downs. Recruiting, training and retaining.

Thanks, and a mailbox business is exactly what I'd prefer, although I am willing to work too. But if anyone has any good ideas for mailbox money, I'm all ears!

Marry someone who has family land with royalties

Nothing to add but the insurance costs for this business will be high. Just FYI.

Thanks, I agree!

Friend does it and makes decent coin. Works at it like full time job. Keeping up w trucks and drivers is a pita

Franta Claus said:

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Howdy Ags, I've recently learned a little bit about purchasing FedEx Routes. Seems like they could be a great investment. It's a little scary that there are a lot of them for sale out there right now, so either people think now is a great time to sell, or they don't like owning them for other reasons.

Has anyone else ever considered doing this or have any knowledge about running this type of business?

Thanks!

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Are you talking about home delivery routes or line haul routes? I've sold several line haul operations, but I don't have much experience on the home delivery side. I'm happy to chat and answer as many questions as I can for you - jeremy at sigma mergers dot com.

Well, generally I was talking about both, but the Line Haul routes seem more appealing to me. I may take you up on your offer to discuss this, and other opportunities you might have.

My thoughts from a few years ago.

https://texags.com/forums/57/topics/2720035

Knew somebody doing this. Started as a sub for other drivers to get his feet wet. Then bought one route, home delivery. Truck and maintenance. Driving all day. Mean dogs. Dog bite. Hospital bills. Weather. Truck rentals when main ride was in the shop. Deduct everything because it counts against earnings.

Bought second route. Found driver. Driver no shows sometimes. Wife gets commercial license and proper training, can now sub. Wife wrecks truck. Insurance rates. Other issues.

Friend sells both routes and says never again.

Somebody I know semi retired at 38 from where we worked and eventually bought a couple routes and now owns a substantial amount. He got into it because he wanted to live elsewhere and own his own business and it was an easy way to do both. He came back to town last year and I had lunch with him... he told me Fedex routes are just buying yourself a job. What that job is depends on how many routes you own. Like he drove daily when he owned 2 or 3... not anymore now that he owns a lot more.

I've heard that from most people I know that went into it. Need scale to get out of the "buying a job" equilibrium

The reality is that just about any business can be a "job," and it has more to do with the size and organizational structure of the business you're buying than it does with the type of business it is.

I've worked on several FedEx line haul business transactions, and there was only one of those where the owner ever got behind the wheel. So in my first-hand experience, these businesses can be absolutely perfect for an owner who wants to manage an operation, rather than pull a trailer over the road.

With that said, they are demanding businesses and require an owner's oversight and attention - CDL drivers are a tough group to manage, FedEx has some strict guidelines you have to adhere to, and equipment is expensive and requires constant maintenance/service.

But overall, I've found these to be excellent business opportunities.

I will make one qualifying statement here, however - most of these posts don't designate whether the subject business was a line haul operation or home delivery operation, and that makes a huge difference. The general opinion amongst FedEx contractors that I know is that home delivery is much tougher, time-consuming and frustrating business to own, with much less upside and much more capital requirement to scale.

My experience has been strictly with line haul businesses.