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Starting a Business | Ultimate Guide

FedEx Routes for Sale: The Ultimate Guide

Published December 11, 2019

Published Dec 11, 2019

WRITTEN BY: Robert Newcomer-Dyer

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This article is part of a larger series on Starting a Business .

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Much of FedEx’s success is due to the over 12,000 independent business owners who own the routes and deliver and pick up packages, keeping the FedEx machine running smoothly. These entrepreneurs hire and train delivery personnel, purchase and maintain vehicles and other equipment, and oversee the day-to-day operations on their route.

Where to Find FedEx Routes for Sale

FedEx routes for sale can be found a number of different ways. One common method is through word-of-mouth. Prospective route owners that have contacts in the shipping or logistics industries can tap their network to determine what routes are for sale that might be of interest to them.

While FedEx lists routes for sale at its website, BuildaGroundBiz.com, at the time of writing this article only a dozen or so routes were listed. Another common method for finding a FedEx route for prospective owners that don’t have existing industry experience or contacts is through business brokerage sites. Brokers like KR Capital maintain targeted buyer lists and can notify buyers when new routes come up for sale that meet their criteria.

Some of the top sites that list FedEx routes for sale are:

• KR Capital : Broker that lists nationwide FedEx routes for sale, with about two dozen at the time of this writing. Maintains a targeted buyer’s list with nearly 10,000 buyers that are notified when specific routes come up for sale.
• BizBuySell : Business listings website listing nationwide FedEx routes for sale, search “FedEx” using advanced search feature.
• BizQuest : Business listings website listing nationwide FedEx routes for sale, with about 300 at the time of this writing.
• Routes to Success : Broker that lists FedEx routes for sale in NY, GA, NJ, PA, SC, TX, VT, with about a dozen listings at the time of this writing.
• Capital Route Sales : Broker that lists FedEx routes with about a dozen listings at the time of  this writing.

Although finding the right route may prove challenging, it’s important to do due diligence when a route that meets your criteria does become available. Most industry experts recommend not buying a route without riding it first. This will give you valuable insight into problems that may arise in the field such as unhappy employees, poorly maintained vehicles, and other logistics that likely won’t be covered in conversations with the seller.

Minimum Eligibility to Own a FedEx Route

Contrary to what you might think, most people who buy FedEx routes don’t have driving or trucking experience, and that is OK. You don’t need such experience to own a FedEx route. However, most usually become interested in the opportunity because of a background in logistics, shipping, or management.

To own a route with FedEx, you will have to sign a contract with FedEx and become an independent contractor . This means you are not an employee of FedEx and will not receive health insurance, a retirement plan, or other benefits from FedEx. Additionally, FedEx requires that your business is set up as a Corporation .

Some of the logistics a FedEx contractor is responsible for are:

• Equipment: Contractors are responsible for buying or leasing equipment such as vehicles, as well as maintaining that equipment.
• HR: All hiring, training, and employee retention is the responsibility of the route owner.
• Benefits: Route owners will be responsible for offering insurance and retirement plans (if applicable).
• Accounting: Accounting and bookkeeping responsibilities such as payroll and business taxes are managed by the contractor.

Although you are an independent business owner and will oversee the day-to-day operations of the route, you must also comply with certain FedEx rules. For example, you and your employees will have to wear FedEx uniforms, and the drivers you hire will need to satisfy FedEx’s driving safety rules.

Most owners of FedEx routes are owner-operators. Not only do they own the route, but they also drive and deliver packages regularly or from time to time when their employees call out sick or are unavailable. If you plan on driving, you will have to meet FedEx’s driving safety rules. You should see your contract for any additional requirements.

The minimum standards that must be passed by an owner-operators are:

• No more than 3 moving violations in the last three years, and a maximum of one in the last 12 months
• Able to pass a Department of Transportation physical and drug test
• A valid Commercial Driver’s License (CDL)

The contractor agreement that you sign with FedEx lasts one to three years, and it renews automatically unless the contractor wants to get out of the business or if FedEx can demonstrate that the contractor is not meeting the terms of the contract.

Types of Routes You Can Buy

Before beginning the search for a FedEx route, you should narrow down the type of route you would like to purchase. There are two types of business opportunities available to contractors; FedEx Ground, which is the most common type of route, and Custom Critical. The FedEx Ground routes are further separated into pickup and Delivery (P&D), and Linehaul routes.

The two main types of FedEx independent contractor opportunities are:

• FedEx Ground: These consist of routes with residential and/or commercial customers. These are dedicated routes with set schedules. You own the route and can drive the route or can hire employees to do the driving.
• FedEx Custom Critical : This covers deliveries that require special handling such as temperature control. There’s no dedicated route and no set schedule, and you must be an owner-operator to participate (i.e., you own and drive the route).

The two different types of FedEx Ground routes are:

• Pickup and delivery (P&D) routes: You drive a van or truck and drop off and pick up packages to and from residential or commercial addresses (or a combination of both residential and commercial).
• Linehaul routes: You drive a tractor trailer and cross state lines to deliver loads to and from designated FedEx hubs. These routes are usually more expensive compared to P&D.

Independent Service Provider (ISP) Model

In May 2020, FedEx will finish transitioning to an independent service provider (ISP) model. With this transition comes some changes to route ownership requirements, and ISPs will be required to own at least five routes or 500 stops per day under the new model.

According to Kyle Rohner, CEO of KR Capital: “With the transition to the ISP model, there’s a route overlap component: historically you would have ground contractors—commercial accounts and businesses—and home delivery contracts, you might have one contractor that owned the ground routes in a certain ZIP code and a home deliver contractor sending his truck into that same area, which is not terribly efficient.”

Contractors that are unable to meet these upcoming requirements will be required to enter negotiations with FedEx to expand their routes, sell their routes, or merge with another contractor to satisfy the minimum requirements. Existing and prospective contractors should ensure they fully understand FedEx’s shift to the ISP model which becomes fully active in 2020.

Expected Costs & Earnings of a FedEx Route

In many ways, says Rohner, being a FedEx contractor is a “double edged sword.” On the one hand, you don’t have to spend time or money on sales and marketing, customer acquisition, rent, or utilities. However, the hours can be long, you have to work on some holidays , and most importantly, you must follow pay schedules and other rules set by FedEx in your contractor agreement.

Revenues & Profits

The three ways FedEx contractors are typically paid are:

• Annual rate: FedEx contractors are paid a flat annual rate based on the size and other characteristics of the route.
• Delivery and pickup payments: Contractors receive a payment for each delivery and pickup, for example $1 and $2 respectively.
• Bonuses: Contractors can earn bonuses for things like customer service and safety achievements.

When you add all this up, the average annual profit for a FedEx route is around $30,000-$40,000 per route. Keep in mind that this multiplies with every additional route that you own. Actual profits will vary based on where your route is located, how many employees you have, the number of loads you handle, and other factors.

The three biggest expenses of owning a FedEx route that may impact revenues are:

• Buying the route itself
• Paying and retaining employees
• Vehicles and other equipment (as well as fuel, maintenance costs, etc.)

While the cost of a route varies widely based on its location, number of employees, and other factors, the average price is about $100,000 per route, says Rohner. Several routes often come bunched together if you are buying linehaul routes. In fact, FedEx estimates that 92% of packages are handled by contractors with multiple routes.

The average number of people employed by a FedEx Ground contractor is seven. In addition to paying their salary, you will have to take into consideration employee benefits (should you choose to provide them) like health insurance and retirement plans.

Apart from the route and employees, you’ll need to purchase equipment.

Some examples of the type of equipment you’ll need to purchase are:

• Vans, trucks, and (depending on your route) planes
• Uniforms for yourself and employees
• Decals for vehicle
• FedEx scanners and software

There’s no particular dealer that you need to go through to purchase this equipment as long as it meets the specifications laid out in your contract. FedExTrucksforSale.com has several options for vehicles. Rohner says that most contractors use FedEx terminals where packages are stored to park their vehicles, so you most likely won’t have to pay for vehicle storage.

Adding all these expenses up, it’s apparent that owning a FedEx route can be a costly endeavor. That being said, if you can provide great service and build on your customers’ loyalty to their “FedEx guy” or “FedEx girl,” then you can potentially go very far in this business.

Benefits of Owning a FedEx Route

There are several distinct advantages to buying a FedEx route, and these routes are highly sought after for a number of reasons. Among these benefits, route owners will not be required to make any sales or marketing efforts, can expect to be paid on time, on a weekly basis, and may choose to manage remote routes that are not in close proximity to their residence or place of business.

Some of the primary benefits of owning a FedEx Route are:

No Sales or Marketing Required

FedEx handles all of the required sales and marketing efforts involved in developing routes. Owners only need to handle the logistics of picking up and delivering packages on scheduled routes. This can be a huge benefit for owners that are not interested in managing the development of routes, and would prefer to focus on transportation logistics instead.

A key concern prospective owners will want to be aware of is that routes may experience diminished performance over time, and there is very little control an owner can exercise over this. While the package delivery industry itself continues to grow, as does FedEx’s market share, some routes may be subject to heavy competition. Would-be FedEx route owners should consider diversifying routes to avoid an outsized impact to revenues from any one route.

Reliable, Quick Payments

FedEx pays its route contractors on a weekly basis, for the previous week’s package deliveries. Pay is executed by direct deposit, and is generally reliable. Revenue for routes is generally considered to be consistent week-over-week. However, pay can be impacted by both peak delivery periods, as well as dips in shipping activity. Contractors will want to plan accordingly, and ensure that they are managing logistics efficiently during seasonal changes.

May be Managed Remotely

While FedEx does not advertise its routes as absentee owner compatible, FedEx routes may be managed remotely, and many route owners do not perform any package delivery, instead focusing on the management of route logistics. Prospective owners looking for an absentee-owner route may find that the logistics of managing one or more routes requires more effort than they planned for, and in general FedEx does not encourage absentee ownership.

Excellent Growth Potential

“FedEx is growing very rapidly, organically. So based on the growth that FedEx is experiencing you might benefit from that directly. There are growth opportunities that become available to existing contractors at no charge. So, as FedEx opens up a new territory, or gains new customers, those new customers need to be serviced, and those opportunities are awarded to contractors that demonstrate an ability to be successful and serve customers well. “The way that works is FedEx will make an announcement that a new opportunity has become available, and existing contractors will put together an RFI making a case for why they should receive the new opportunity, creating additional upside for growth.” —Kyle Rohner, CEO of KR Capital LLC

Financing Options to Buy FedEx Routes

Most borrowers need some kind of financing to purchase a business such as a FedEx route. There are a variety of options for obtaining financing . Generally speaking, you will need a loan to cover the cost of equipment and working capital to hire and pay employees, storage fees, etc.

The least expensive source of financing for most people who buy a FedEx route will be an SBA loan , which can be for working capital and to buy equipment.

Some of the typical requirements to qualify for an SBA loan are:

• Credit score: At least 680
• Cash flow: Existing route should be cash flow positive
• Collateral: Primary personal residence may need to be put up as collateral, as well as FedEx vehicles and other equipment related to the business, up to 100% of the loan, or to the greatest extent possible

If you meet these requirements, we recommend South End Capital for SBA loans when buying a business. They excel at relatively quick turnarounds on SBA loans and offer free consultations. As with all SBA loans, borrowers should expect to bring up to a 30% down payment.

ROBS financing is an option for both SBA loan down payments and complete funding. Through a ROBS, aka “Rollover as Business Startup,” you can finance a business using your retirement account. You can learn more in our Ultimate Guide to ROBS Financing , or speak with our recommend ROBS provider, Guidant Financial.

Bottom Line

Buying FedEx routes for sale can be a lucrative and flexible way to get into business with fewer costs than traditional brick and mortar businesses. There are multiple opportunities to find a FedEx route of interest to you, and when you’re ready to purchase, there are multiple financing options to get you going.

Need financing to get started? Guidant Financial is an experienced ROBS provider which can help you convert your retirement funds into working capital today. They also offer free outside counsel throughout the entire process. Set up a free consultation with an agent today.

Visit Guidant

About the Author

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Robert Newcomer-Dyer

Robert has over 15 years of experience in sales leadership, finance, and business development. He recently spent six years leading a team of small business financing professionals, facilitating the deployment of critical capital to over 9,000 small businesses across the US.

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The Ultimate Beginners Guide to Buying (or Avoiding) FedEx Routes.

Why would I want to buy a FedEx route business?

Most people are attracted to route ownership since it has the potential to allow for working less than in their current career as well sometimes making dramatically more income.

Before FedEx routes became more publicly sold, if someone was looking to escape the corporate grind (or some other business they were operating), most people only had 2 choices:

1) Start your own business. 2) Buy a franchise.

With a franchise, you typically have significant initial investments as well as having the long period prior to establishing any cash flow. With your own business, you typically have significant risk that you’d  never  have any cash flow. Working with FedEx has a tremendous amount of benefits compared to many other businesses and has often been regarded as  one of the best businesses to acquire  for many buyers.

FedEx allows a contractual relationship for the delivery of many of their parcels in the US and Canada, which the territories can be bought and sold.

Essentially you can buy a FedEx business that has an established system in it similar to a franchise, however, allows for the potential to generate cash flow the first week you’re in business.

FedEx has had a successful history of over 20 years working with contractors. It allows a balance between the freedom of owning your own business but with a very structured system already in place for you to follow.

However, while this business model has been very lucrative for many contractors coming from a variety of career backgrounds,  the business is NOT always a good fit for everyone.

What is a FedEx route business?

FedEx Ground and Home Delivery routes are contracted out to independent business owners. When you buy a route, you’re essentially paying for the trucks that often come with the business, and to take over the contract with FedEx. Usually employees transfer over to new owners with no problem, and many businesses are turnkey since they have a manager in place.

Essentially though, you’re paying for trucks and the goodwill of the FedEx contract which stipulates the legally protected territory that you will own.

How do you buy a FedEx route?

When someone wants to sell their routes, they usually will contact one of several brokers out there to sell it for them. The brokers have 3 primary responsibilities: 1) To advertise the route on sites like BizQuest.com and others, 2) To answer basic questions from potential buyers, and 3) To assist in the transfer process.

Therefore, you’d go to a site like BizQuest.com, find a route listing you like, contact the broker associated with that listing, and the broker will provide additional information on that opportunity.

What do I get exactly when I buy a route?

Most of the time it’s just the contract and the trucks. Sometimes trucks do not come “free and clear” (eg. paid off) and you need to take over the monthly payments on the loan or lease.

Can anyone buy a FedEx route?

Approval rates for new contractors is very high for buyers with general business experience.

However, not everyone will be able to buy a route though, as FedEx must interview the potential new contractor. While many people are approved to work with FedEx, not everyone is. Most of the time people are rejected due to a very low amount of business experience, however, people from all different business backgrounds have come to work with FedEx and found tremendous success.

What do I have to do to manage a FedEx route?

This could differ from day to day, and is a critical question to ask with each individual route business. Some route bundles can be more “semi-absentee” than others.

Understand that all route bundles are NOT created equal, and whether a manager in place or not is not the only factor for semi-absentee operations.

For the most part, ownership takes both low and high level expertise for the overall management of the business, dealing with the trucks, FedEx stipulations, and HR components that are typical in many businesses.

Are the brokers, forums, and sellers a good source of information to learn?

Forums can be a very bad place to learn about routes as many uninformed people and disgruntled owners go there and don’t give the full truth of the situation.  There’s many reasons why  a forum can be a dangerous place  to learn.

As for brokers, they’re paid by the seller and essentially are working for them – NOT you.

While some good brokers out there will give good information, some generalized brokers are not knowledgeable about FedEx routes specifically. At the end of the day, the information you’re receiving about a route from a broker is inherently highly biased – their job isn’t to train you on how to evaluate routes, their job is to sell a route and help with the transition process.

I don’t fault brokers for being marketers , nor do I fault them for relaying inaccurate information when they’re tricked by some unscrupulous sellers.

However, I feel it’s reasonable for anyone to be wary of “training” offered by someone that doesn’t get paid unless you buy something. If you didn’t know whether a Lexus or a Mercedes was better, would you ask a Mercedes salesman how to evaluate which car is better?

How can I tell the difference between a good and a bad route?

Most routes are “good,” but usually not quite AS good as claimed in the listing. Other times a good route might be a disaster for others. There are ways to determine whether a route is a good for you personally, which is why we have the route evaluation training available.

What are good profit margins on a route?

When you understand how FedEx routes actually get structured and paid via a route engineer, you’ll discover there’s no rule of thumb here. FedEx pays differently for different types of routes based on region, state, designation, negotiations, etc. If you try to look at a listing and presume that 30% (or some other arbitrary number) of the gross income should be the net income, it won’t work and that financial model will break as soon as you compare it to other routes.

There are many complex and proprietary reasons for this that are discussed in training. But consider that even on a simplistic level, if you look at one operation where the owner drives a route and maximizes his profitability, his percentage of net income percentage of his gross income will be much higher than a different contractor that has layers of management (and expenses) to make his business more semi-absentee. You can see why saying something ridiculous like “Well, this FedEx route makes only 15% margins in terms of it’s EBITA, so it must be bad. And this other one making 40% margin must have an owner that’s lying. I know the average is 20% from what I read online!” 

Meanwhile, both of margins are accurate in each deal, and the 15% margin business might be a superior operation. This is just one of many reasons why you want to avoid trying to figure good margins are in a FedEx route deal. 

So remember, you have to evaluate each route properly to determine what the actual net income is, and using off the cuff models like this will make it seem like some sellers are exaggerating their net income, which in reality, they’re truly hitting the profit levels claimed.

What should I look for when evaluating a route?

All routes are similar in that they’re all FedEx routes. However, the differences between those routes can tremendous. The reality is that to properly know what to look for takes several hours to analyze, as some routes are higher risk and/or higher difficulty than others.

The training  course on how to evaluate FedEx routes  will allow you to examine routes properly using proprietary FedEx specific knowledge and not simple general business concepts.

Are FedEx routes risky?

Relative to buying other businesses, FedEx routes can be lower risk. Also, when you know how to evaluate them properly, you’ll be able to better mitigate and evaluate your risk properly.  For an untrained buyer, FedEx routes can be extremely risky and can lead to very large losses.

Most FedEx contractors are good people and you should  trust but verify.  That said, there are VERY few examples of routes I’ve evaluated where the seller wasn’t exaggerating profits to a degree (or made it seem less risky, or made it seem easier than it was to manage). Sellers doing this is exceedingly common, but the difference between sellers is the degree of the exaggeration do they want to try to get away with. 

While business ownership is inherently risky, routes can be far lower risk than other businesses  when evaluated properly.

How much money can I make with a FedEx route?

Most contractors can generate net incomes ranging from $100k to over $1M. However, most route owners will make about $200-$500k on average.

There are reasons you don’t see too many route owners making more than $500k though, as it has to do how routes are structured in relationship to FedEx corporate. 

If you’re a hedge fund, private equity group, or anyone looking to scale the business beyond $500k net income, you should absolutely  get evaluation training  before acquiring routes and then learning about Scale Rules after it’s too late. 

Are all routes profitable?

Most routes are profitable as no one would operate them otherwise, and FedEx needs contractors to be profitable to continue to work with them and keep their business alive. There are thousands of contractors in North America and are truly the backbone of FedEx’s US operations.

Some routes are not profitable due to a variety of factors, but these situations are highly unique.

Can I keep my day job and buy routes as passive income?

Passive income and absentee ownership is possible with  all  businesses.

The better question is, will a passively owned business be run into the ground due to neglect, and how long will it take before the business is destroyed?  That is the question you should be asking.

The reality is that 100% absentee owned and passive income in routes is very atypical. However, some contractors do this, but the routes have to be structured in a way to allow for this as well as the owner must be well suited for this.

If I told you there was a business that required no skill, no stress, no effort, cranked out money every single day, had no risk and you’d make hundreds of thousands of dollars because the manager does everything, you’d say a business like that was too good to be true and a scam. But when those  exact same attributes  are restated and sugar coated with “absentee owned,” somehow it seems believable again.

While it’s clearly possible to be semi-absentee and successful, you need to know how to evaluate if a semi-absentee business is being run into the ground or it’s semi-absentee because it’s a well run organization.

There are ways to determine and identify well run operations from the negligent / failing operations. Many buyers trying to “save money” by forgoing proper due diligence training sadly find out they’ve bought a highly neglected operation only  after  they’ve purchased. 

Are routes a good long term investment?

Routes have provided stable income for thousands of contractors for over 20 years. While there is always change looming in nearly every industry out there, the future of FedEx contractors seems very bright in the next several years even with many disruptions / adaptations that may be present in logistics.

Will autonomous driving, Amazon, drones, and robots destroy this business model?

These things could affect contractors certainly.

The reality is that I see no way that the industry will be disrupted so severely that FedEx contractors go out of business in the near future. These advancements to the logistics industry could allow for even more packages to be easily shipped at even cheaper rates than before and spur even more growth in the shipping industry.

When we shifted to a 7 day standard delivery workweek back in 2020, we saw FedEx embracing the fact that being adaptable and changing is required to stay competitive. Contractors duties may change significantly several years in the future, but people wanting packages shipped doesn’t seem to be going away and we need people to coordinate those efforts, however they may be.

Are FedEx routes the best franchise to buy?

Technically, FedEx routes aren’t franchises as you pay no royalties, franchise fees, etc. Route businesses are basically a contractual relationship between an independent business owner and FedEx.

As for them being the best business to buy, they can provide benefits beyond many other businesses that are for sale out there.

What do I have to do to get a route?

• Make sure you’re well suited for route ownership and this is something you want to do. Get  assistance here .
• Make sure you have the money for this and/or have secured a reasonable financing connection. Get introduced to banks that can specifically  finance FedEx routes here . 
• Find a route for sale using a site like BizQuest.com.
• Reach out to the broker / seller and get more information.
• Evaluate the route.
• Place an accepted offer.
• Go through the application process at FedEx.

Is it true that you can get routes for free directly from FedEx?

Yes, but you’re not going to get them.

Those free routes are going to go to established contractors that FedEx knows, likes, and trusts as opposed to someone that doesn’t have any experience in FedEx routes. It’s possible for a route to be awarded to someone completely new to FedEx, but you get what you pay for – they’re likely the worst routes ever. So, even when you “win” a free route, you probably still lose.

What’s a linehaul route and is it as good as a Ground and Home Delivery route?

Most people starting out in logistics will gravitate towards Home Delivery and Ground more.

Linehaul routes are a totally different model than Home Delivery and Ground, and attract different buyers with different levels of income fluctuation tolerance, as well as different risk tolerance, and time available for operations management.

One is not “better” than the other, but usually one is more  suitable  for you.

What does the typical process look like when buying a route after an offer is accepted?

Each broker uniquely dictates how a lot of transfer process will go. Some brokers will want a LOI (Letter of Intent) to be signed early on prior to due diligence, while others find this to be a waste of time.

Many brokers will want deposits placed ranging from 5-10% of the purchase price, and sometimes those deposits may or may not be refundable.

A typical process might look something like the following. After your due diligence is over and you’ve placed an accepted offer. You then will:

• Place your deposit on the route,
• Fill out a contractor application,
• Interview with the terminal manager,
• Set up a corporation,
• Get your corporation audited by a CPA,
• Get your RFI created (the RFI is a “Request for Information,” which is also known simply as the business plan for your routes),
• Set up your eVerify account and get the state to issue letters of Good Standing,
• Jump through a number of other hoops FedEx will require,
• Determine a transfer date.

The broker helps with this process, but primarily is dictated and assisted by the terminal manager and the seller.

What’s the difference between a FedEx route and bread routes?

Bread routes are great for  single  route ownership that is typically low stress, flexibility of hours, very stable, requires high owner involvement, and generates a $50-$100k net income on average.

FedEx routes allow for a net income that is often significantly higher than bread routes. With higher income potential also comes more effort (either intellectually or physically), additional skillsets required, and a higher risk relative to a bread route.

Can I get my CPA or lawyer to help me evaluate a route?

CPAs look at tax returns, which are often can be exceedingly misleading. Lawyers understand business law and business concepts just like many people. Both of these professionals can be helpful, but CPAs are usually best suited to help you file your taxes and lawyers are best to draft up custom contracts for unique acquisitions.

Neither a lawyer, nor your CPA, has likely owned routes and knows the real hardships (and profitability) that comes with route ownership. They will not know what is likely coming in the next FedEx contract that will affect your pay rates, nor will they understand certain massive risk points of certain routes (eg. if that route won’t have its contract renewed and you’re buying a time bomb). As a very simple example, they don’t know what a scanner should cost, what it could cost, and more importantly, what it will cost moving forward.  

Lawyers and CPAs are valuable assets to your acquisition – but using them primarily for due diligence purposes can be crippling for a company specific evaluation that required proprietary knowledge to evaluate properly such as FedEx.

I have lots of business experience; do I still need due diligence training?

Yes – Generally speaking, this is  only  person that should be considering FedEx routes and getting the training.

The training covered is  not  basic business concepts but instead concepts that are specific only to FedEx routes. No amount of business experience can tell you at what service metric FedEx will not renew a contract, or why certain well performing profitable routes will not have a contract renewed, how to determine the difficulty of a route to know how much certain employees in certain regions are typically paid, or knowing what is coming in future contracts that will affect your profitability massively, and so on.

Are all the good routes taken and not for sale?

No. The amount of failing and/or awful routes is a small percentage of the overall routes that exist.

However, routes that are distressed or having difficulty often are the ones for sale.

Many routes are fantastic operations, and there are many excellent routes for sale where people are selling just due to retirement, moving, burn out, and/or simply cashing out.

Are all the sellers out to trick me?

No, not ALL of them by any means – overall, this is not a “scammy” or unscrupulous industry.

The sellers for the most part, in my opinion, are good people just ready to move on. But like many people selling something, they will make things look significantly better than what they are, and they will presume that everyone is a great fit for buying their routes.  Since not everyone is a good fit for routes , and routes can be significantly worse than what’s been claimed, is what leads some contractors to have felt “duped” or scammed. 

The good news is that a proper due diligence process specific to FedEx routes allows for the mitigation of many of those risk points. The bad news is that this business seems overwhelmingly simplistic, so many experienced business owners believe that training won’t be valuable for them. This potentially results in their route endeavors failing terribly.

FedEx operations are relatively simple, but FedEx acquisitions are NOT simple. 

This service is aimed to help brilliant business minded individuals regardless of their experience, and the typical client I have is usually highly experienced and very business savvy to realize that industry and/or company specific due diligence expertise is required for a successful business acquisition.

I have no business experience whatsoever; will due diligence training help me?

The first and most important part of due diligence is to assess if you’re well-suited for route ownership.

Many people have wisely bought FedEx routes as their first business, as the system in place by FedEx allows for a method that results in the majority of contractors remaining profitable.  However, routes require general business knowledge and expertise that is beyond the scope of due diligence training.

You should  already  have a very solid understanding of business concepts, comfort with managing HR issues, and so on. Many people coming from management backgrounds in a variety of industries such as real estate, finance, and high tech have found success in the FedEx world.

Do I have to pay the full purchase price of a route or can I finance a FedEx route with an SBA loan?

Since 2019, financing has been very favorable.

Banks often go back and forth on whether they like to loan on routes, but currently, we’re in a time that loans are possible. You should have about 20% of a down payment usually to make sure you have a reasonable chance of being financed.

How much is a FedEx route worth and how do I figure out the value of what a FedEx route?

Valuation for the masses is a simple process. There are a number of things that go into valuation that clients learn during training, but the majority of buyers do not know of any method beyond looking at comps (eg. what other routes are selling for currently).

Finding how much  you  should pay for a FedEx route is not the same as determining the value of a FedEx route. 

There is no “set” or “official” valuation, but since 2019, we have seen routes sell for as low as around 2.5 times the net income, up to around 4 times the net. I have watched the average valuation for routes steadily increase throughout the years and have looked at the listings regularly since 2009. 

To properly figure the value of a route, you need to evaluate the route deeply beyond just the net income and obvious general characteristics such as the fleet condition.

Are FedEx routes the best business to buy?

I think for the  right   person , they’re one of, if not  the , best business to buy.

My experience with a high number of non-route businesses for sale is that the sellers of typical businesses (eg. not a FedEx business) have one of the following situations:

• They are on their way out or having a downturn. I remember seeing this quite a bit when Sears franchise owners were selling their locations years ago.
• Aren’t making any money. There are many that are running a loss but want you to buy it and ‘turn it around.’
• Have extensive risk. This was the case when many vape shops were for sale years ago when there was significant legislation on whether vapes would continue to be legal or not.
• Have nearly impossible due diligence processes. Businesses that are cash heavy can easily have their books altered to look better and little ways to prove it.
• Are nightmares to operate. I’m thinking of the restaurant owner that’s successful enough that he’s working 70 hours a week, but not so successful that he can afford top tier management to take his spot.
• Are very reliant upon one thing or customer. Internet businesses reliant upon a Google search ranking, or an Amazon store that relies on Amazon not changing their policies. This is somewhat the case at FedEx as well, but we have 20 years of history to be able to predict their moves. Also, Google doesn’t need or care about 1 small business owner, as opposed to FedEx which relies on contractors to keep their current business running.
• Have excessively high valuations. An outdoor storage center might be a great business, but when they sell for 6x the net income, the ROI drops severely compared to other businesses.
• Are highly specialized. Businesses such as an HVAC or electrician contractors business requires deep knowledge of that trade prior to getting into a lot of times.
• Have no potential of being scalable or passive. Business loan consultant franchises, franchise consultants, etc.

As you can see, each of these “negatives” could be a positive for the right person. Someone with not a lot of time may happily opt for a high valuation business like a storage unit franchise. Someone with expertise in rebuilding a business may happily buy the non cash flowing business. And someone that wants low stress and lower risk and doesn’t care about scalability may find success in a bread route.

So really, the better question becomes, what’s the best business for YOU to buy.

Let’s  find out if routes are a good fit  or not for you!

Owning a FedEx Route

P&d (pick-up and delivery) routes.

P&D Routes cover local residential and business deliveries. Historically, these deliveries have been fulfilled by either “Ground” or “Home Delivery” contractors.  By May 2020, FedEx 1   will require operators to cover both types of routes within a given area.

FedEx Home Delivery Routes

These routes serve residential areas and generally operate Tuesday through Saturday. A FedEx Home Delivery Route will typically deliver online orders and personal deliveries.

FedEx Ground Routes

These routes serve commercial accounts and generally operate Monday through Friday. A FedEx Ground Route might service local businesses, hospitals, schools, etc. Unlike Home Delivery, Ground operators must also account for customer pick-ups during specific pick-up windows.

Benefits of Owning a FedEx P&D Route

Compared to Linehaul routes, P&D routes tend to be smaller and less expensive to purchase. The P&D trucks themselves are also smaller and require a smaller capital expenditure. The routes will generally cover fewer miles will have fewer driver requirements.

Linehaul Runs

Linehaul Routes can run either intra- or inter-state, hauling trailers between FedEx hubs. Linehaul runs are serviced by semi-trucks, which may be more costly to maintain and carry a higher safety risk. These routes require drivers to hold a valid CDL license.

Linehaul routes consist of three types of runs:

Dedicated Runs

These runs operate continually along the same route (for example, they might go from Asheville to St. Louis and back). The route and destination does not vary.

Unassigned Runs

These routes will originate in the same place but the destination will vary as FedEx needs change.

Spot runs are a bit of a hybrid between P&D and linehaul runs. They utilize semi-trucks to service regional pickup and deliveries for large companies (such as Wal-Mart).

Benefits of Owning a FedEx Linehaul Route

Despite the larger price tag, Linehaul runs often offer larger revenues and cash flows over P&D routes. Because Linehaul contracts pay on a per-mile basis, a single linehaul run can generate up to five times more revenue than a P&D route.

Types of FedEx Routes at a Glance

Home delivery routes.

• Operate from Tuesday through Saturday
• Primarily deliver packages to residential addresses
• Tend to operate with smaller vehicles than those of ground routes
• Often see a higher growth rate than ground due to the increase in residential online shopping

Ground Routes

• Operate from Monday through Friday
• Primarily deliver to commercial addresses
• Operate larger vehicles than those of home delivery routes
• Often see more stability throughout the year due to the fact that its volume is not directly tied to consumer spending behavior
• Come in several forms, including: dedicated, unassigned and spot runs
• Operate with semi-trucks which come with a higher associated cost, but longer longevity
• Runs can operate regionally or nationally and may range from several hundred to several thousand miles
• Require drivers to have a valid CDL license to operate

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Get Your FedEx Route Business Off the Ground with SBA Financing

Thinking about buying a FedEx route for sale? It could be a good option if you want to enjoy both the perks of business ownership and the benefits of working under the established reputation of FedEx. Your purchase may also qualify for financing from the Small Business Association’s (SBA) loan programs.

This article explains the SBA loan programs’ benefits and how they can help prospective FedEx route owners secure the needed capital to set their business on the road to success.

How Does FedEx Route Ownership Work?

Buying a FedEx route does not mean that you’ve bought a piece of the FedEx company. You’re not purchasing any physical land or assets, either. All FedEx routes are bought and sold as contracts. When you purchase a route, you purchase guaranteed business sent your way from FedEx. You’re basically buying the assurance that business from FedEx will pass through a particular set of streets, which you’ll get paid to operate.  

Route owners operate as independent contractors. From a tax perspective, that means you own your business. It also means that you’re responsible for the equipment, employees, and management of the route. 

FedEx may have their name on the sides of the trucks, but you become the boss when it comes to making sure the business on your route is running smoothly.

Why Are SBA Loan Programs Good for Buying FedEx Routes?

The collateral requirements of conventional loans (i.e., traditional bank financing) could be a problem for entrepreneurs buying FedEx routes since the business model is light on assets compared to other businesses.

Lenders may require a borrower to pledge assets worth up to 150% or more of the loan amount to qualify for a loan. Business owners will need to pledge assets owned by the business to meet this collateral requirement. They may also have to pledge personal real estate, like their homes and rental properties, to secure a loan.

If you’ve ever browsed FedEx route sales, you know that they are expensive, making the collateral requirement for a conventional loan a large hurdle for many entrepreneurs. A single ground route can range anywhere from a couple hundred thousand dollars to millions of dollars.

Unlike traditional loans, SBA lenders aren’t required to ask for an amount of collateral that exceeds the value of your loan. For loans over $350,000 the lender can list the following to meet your collateral requirements:

• Business Assets
• Commercial Properties
• Value of Your Business Accounts Payable and Receivable

If the value of all your business assets doesn’t match the value of the loan you’re taking out, the lender may also have to list your personal property. However, putting up a personal residence for collateral is generally a last resort for SBA Loans.

In addition to having generally lower requirements for collateral, SBA Loan programs also come with other benefits, including:

• Extended Maturities. This means you have a longer time to pay back the loan, so monthly payments may be smaller.
• Flexible Use of Funds . The SBA has a broad range of eligible uses for the loan program, so small business owners have an easier time using the funds on what they need most.
• Maximum Interest Rates Set by the SBA. The rates are set so that small business owners can compete in the current economy.

How Can FedEx Route Owners Use SBA Loans?

Buying a FedEx route can be financed using SBA loan programs because the purchase falls under the eligible uses of proceeds set by the SBA.  In addition, you could also use the funds to…

• Purchase trucks, vehicles, and other transportation equipment
• Pay and train employees
• Purchase and pay for insurance on equipment, packages, and employees
• Purchase package processing software and tools
• Pay royalty fees

Why Are FedEx Route Buyers Eligible for Small Business Loans?

The SBA’s loan programs were made to benefit small business owners. FedEx is a large company. Why would they let people use the loans to buy FedEx routes?

Since route owners are independent contractors, they qualify as small business owners. Owning a FedEx route means that FedEx is a contractually bound customer who must use you as a vendor for the streets on your route. It doesn’t mean they employ you in the traditional sense.

Whether you use employees to man the routes or fulfill every order yourself, the fulfillment business is owned by you.

The SBA just requires your business meets the following eligibility standards to qualify for their program. The business must:

• Operate for profit
• Be engaged in, or propose to do business in, the U.S. or its territories
• Have reasonable owner equity to invest

The SBA also reviewed the following arrangements with FedEx and deemed them eligible for financing based on their standards for small businesses. You still have to meet universal standards, but if you operate under any of the following agreements you are not excluded from SBA Loan programs because of your working relationship with FedEx:

• FedEx – Home Delivery Operating Agreement
• FedEx – ISP Agreement
• FedEx – Linehaul Agreement
• FedEx – Pick-Up and Delivery Operating Agreement
• FedEx Ground
• FedEx Ground Package System, Inc. – Independent Service Provider Agreement 

Which SBA Loan program is Best for Future FedEx Route Owners?

The most popular SBA Loan program is the 7(a) program. It offers flexibility for how you can use the funds, so it’s been a good fit for many different types of projects. Through the SBA 7(a) program eligible businesses can receive loans up to $5 million to benefit their business.

The SBA 7(a) Loan is likely the program most FedEx route purchasers will use, but it’s not the only way to secure financing for this small business. Speak to a professional from a trusted institution to help determine the best options for your unique business and goals.

How Do I Apply for an SBA Loan to Buy a FedEx Route?

Ready to begin the formal SBA loan application process to fund buying a FedEx Route? Follow these next steps.

1. Confirm Your Eligibility for SBA Financing

First, confirm you meet the universal requirements for eligibility set by the SBA. Next, research the requirements of lenders you want to consider working with. Lenders may have their own standards to meet to process an SBA loan through their institution.  Be prepared to address exactly how you’ll use funds from the SBA program when you meet with lenders to talk about your options.

2. Prepare Your Application Documents

Your loan application will need to detail your financial history and business plan to properly process your loan. The lender will look at factors like your credit history, assets for collateral, business plan, and financial statements to determine whether or not you’re a candidate for an SBA Loan program.

You’ll need to submit documents such as your:

• Business plan
• Business and personal tax returns (past three years)
• Business debt schedule
• Business interim financial statements
• Personal financial statement for all guarantors
• Executive summary for owners and managers of the business
• Detailed explanation for the use of the loan funds

Collect and organize these documents prior to beginning the formal application. It may help your loan application move along more quickly.

3. Start the Application with a Trusted Lender

Your SBA Loan must be processed with a legitimate lender. The lender will walk you through the application process from start to finish. They’ll also help you gather any additional documents you may need for your specific business and ensure that each piece of the application is submitted at the correct time.

Learn more about our applying to SBA Loans with our tips for preparing your SBA Loan Application . Have questions about any point of the process? Our SBA loan officers are always happy to help.

Addressing the Need for Out of the Box Small Business Financing with SBA Loans

West Town Bank & Trust is proud to serve small business owners and entrepreneurs, helping them access affordable capital when they need it most. Use the form below to check your eligibility for FedEx route financing options.

Check Your Eligibility for an SBA Loan:

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West Town Bank & Trust is not endorsed by and is not recommended by Federal Express Corporation and FedEx Ground. West Town Bank & Trust is not sponsored by, is not approved by, is not associated with, and has no connection with Federal Express Corporation or FedEx Ground.

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Financing 101: sba loans for car wash businesses, usda business loan success stories: financing for cold storage and food processing, 5 documents needed to finance a fedex route.

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SBA BUSINESS PLANS & FEDEX ROUTE PURCHASE FINANCING

Need a SBA Business Plan for FedEx Route Financing?

The U.S. Small Business Administration (SBA) has compiled a list of  guidelines for how business plans should be prepared, including what  needs to be outlined and included in order get funding from banks and  other institutions. MyGround Support® is an experienced FedEx Route SBA Business Plan author that can author your plan to these guidelines .  

Be sure to read our blog pos t on exact loans issued to FedEx Contractors including their Name, Location, Lender, and Loan Amount as well.

FedEx Linehaul & FedEx ISP Agreements are SBA Recognized

FedEx Routes are listed on the SBA Directory for Lenders/CDCs in evaluating the eligibility of a small business that operate under an agreement.  

Learn more about FedEx Route Financing in the FedEx Routes for Sale Industry by clicking here

Be sure to read our blog pos t on exact loans issued to FedEx Contractors including their Name, Location, Lender, and Loan Amount.

MyGround® is a registered trademark of MyGround Support, MyGround Support, LLC is not endorsed by, sponsored by, is not associated with, and has no connection with the Federal Express Corporation or FedEx Ground.  Please see Terms of Use of site.

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Small Business Trends

Should you consider buying a fedex route.

If you’re interested in a way to generate more income, you might consider buying a FedEx route.

You can buy a FedEx route on a FedEx route marketplace, or from an independent owner; once you do, you’ll gain access to a fleet of trucks, employees, and equipment necessary to deliver packages all over the country.

FedEx routes function as a business and can be a great way to make money. But are they worth buying?

The Advantages of a FedEx Route

When looking at the prospect of buying a FedEx route, you can anticipate several significant advantages:

• Access to existing infrastructure. Suppose you were thinking of starting a business from scratch. In that case, you’d need to pour significant time and financial resources into researching, procuring, and setting up all-new equipment and infrastructure. But with a FedEx route, you have the benefit of leveraging an already established infrastructure. As the new owner, you can seamlessly step in and take over operations without the teething problems typical of a startup.
• A reliable business model. FedEx routes have been profitably operational across the country for decades, testifying to their longevity and dependability. With the steady increase in demand for home deliveries, FedEx’s role is unlikely to diminish, ensuring its relevance for the foreseeable future. This reliability, independent of timing, luck, or rigorous innovation, is highly appealing to a wide spectrum of aspiring entrepreneurs seeking a steady business venture.
• Semi-passive income. Passive income offers the prospect of earning with minimal effort. FedEx routes operate on a nearly autonomous model, presenting an almost passive source of income. As the owner, you would need to devote a few management hours per week, but this largely remains a hands-off system, perfect for those seeking a balance between involvement and income.
• Potential for future sale. Ownership of a FedEx route is not a life sentence. If retirement beckons or if your interest veers towards other ventures, you have the option to sell your FedEx route to another interested party. The sale timing might even allow you to recoup most of your initial capital, making this an investment with a potential exit strategy.
• Job Security: Owning a FedEx route offers job security, thanks to FedEx’s established, successful business model. As an owner, you’re shielded from typical corporate layoffs, providing stability in uncertain economic times. However, maintaining profitability still requires effective management.

The Disadvantages of a FedEx Route

While attractive, FedEx routes do come with certain challenges:

• Demand for initial capital. The upfront cost of buying a FedEx route can be substantial, with prices generally starting around $1 million. If you’re short on cash or don’t qualify for a loan, this initial cost might pose a significant barrier. However, you could consider pooling resources with a partner, making the purchase more accessible.
• Decision pressure. Despite the semi-passive nature of the income, FedEx routes require some management to ensure profitability. This management involves ongoing analysis, critical business decision-making, and occasional infrastructure upgrades and improvements, potentially resulting in some stress.
• Inconsistent cash flow. Not all FedEx routes guarantee a steady cash flow. Your profits might fluctuate with seasonal trends or unforeseen dry spells, posing challenges to the profitable operation of the business.
• Potential profitability. While FedEx routes can be a profitable venture, they might not match the earning potential of a business started from scratch. For instance, inventing a novel product or capitalizing on a new market could yield higher profits.
• Limited flexibility : FedEx routes are designed to work within the FedEx system, which implies adherence to strict operational rules. This structure limits your flexibility to innovate or experiment with new business strategies, which some entrepreneurs might find constraining.

To help you decide, here’s a quick summary of the advantages and disadvantages associated with owning a FedEx Route:

Buying a FedEx Route

When considering the purchase of a FedEx route, it’s crucial to approach the process with thorough research and strategic planning. This investment requires not only financial commitment but also an understanding of the logistics industry and FedEx’s specific operational model.

Here are key considerations and steps to follow:

Choose the Right Kind of Route

Understanding the difference between Pickup and Delivery (P&D) routes and Linehaul runs is essential. P&D routes are typically more localized, involving deliveries to homes and businesses within a smaller region.

They are often considered a good starting point for new entrants due to their manageable scale and operational simplicity. In contrast, Linehaul routes involve longer-distance deliveries between FedEx hubs and often require more investment in terms of resources and management.

While they can be more complex and costly, Linehaul routes often yield higher returns.

Financial Planning and Analysis

Before purchasing a FedEx route, conduct a thorough financial analysis. This includes reviewing the route’s financial history, understanding the existing contracts, and assessing the necessary capital for purchase and operation.

Consider potential financing options, such as small business loans or partnerships, if personal funding is insufficient. Analyzing the route’s profitability, existing customer base, and growth potential will provide a clearer picture of the investment’s viability.

Active Management and Oversight

Owning a FedEx route demands active involvement, especially in the early stages. New owners should be prepared to dive into the operational aspects, such as managing staff, maintaining vehicles, and ensuring compliance with FedEx’s standards and regulations.

Active management also involves strategic decision-making to enhance efficiency, such as optimizing delivery routes and investing in technology for better tracking and management.

Market Research and Networking

Engage with existing FedEx route owners to gain insights into the business. This networking can provide valuable tips on day-to-day management, challenges to anticipate, and strategies for success.

Additionally, understanding the market trends within the logistics and delivery industry can help in making informed decisions about which type of route to purchase based on potential growth areas.

Exit Strategy and Resale Value

Consider your long-term goals and potential exit strategies. Understanding the factors that influence the resale value of FedEx routes, such as the route’s historical profitability and operational efficiency, is important.

Prospective buyers should also stay informed about market conditions and FedEx’s policy changes, which can impact the business’s future viability and resale opportunities.

How to Make Your Route Successful

Purchasing a FedEx route can be a significant investment. To maximize its profitability and efficiency, consider these additional strategies:

Optimize Operational Efficiency

Focus on streamlining operations to reduce costs and improve service quality. This can include route optimization for fuel efficiency, regular maintenance of vehicles to avoid costly repairs, and effective scheduling to maximize driver productivity.

Invest in Employee Training

Well-trained employees are crucial for successful operations. Invest in regular training programs to enhance their skills, especially in areas of customer service and safety. A skilled and motivated workforce can lead to improved efficiency and customer satisfaction.

Embrace Technological Advancements

Leverage technology to enhance operational aspects of your FedEx route. This could include using advanced software for route planning, real-time tracking systems for packages, and efficient communication tools for team coordination. Technology can also aid in data analysis for informed decision-making.

Foster Strong Customer Relationships

Building good relationships with your customers can lead to repeat business and positive word-of-mouth. Be responsive to customer inquiries and complaints, and strive to provide excellent service consistently. Understanding customer needs and expectations can also help tailor your services for better satisfaction.

Monitor Financial Health

Regularly review financial statements to keep track of your route’s performance. This includes monitoring revenues, operational costs, and profit margins. Being proactive in financial management can help identify areas for cost reduction and revenue enhancement.

Stay Informed and Adaptable

The logistics and delivery industry is constantly evolving. Stay informed about industry trends, regulatory changes, and technological advancements. Being adaptable to changes in the market can help keep your business competitive and resilient.

By implementing these strategies, you can effectively manage your FedEx route, ensuring it remains profitable and sustainable. Owning a FedEx route requires a balance of good business acumen, effective management skills, and a willingness to adapt to changing circumstances.

Buying a FedEx route might not be every aspiring entrepreneur’s dream investment. Still, for those with the right blend of capital and management experience, it can be an ideal avenue.

If you’re considering this path, it would be wise to engage with existing route owners for insights and ensure thorough research before committing to any decisions.

By following these steps and considerations, you can navigate the complexities of purchasing a FedEx route more effectively. This detailed approach ensures that you not only choose a route that aligns with your financial capabilities and business goals but also are well-prepared for the operational and management challenges ahead.

Making an informed decision in this venture will not only set you up for potential success but also equip you with the necessary insights to manage and possibly grow your investment in the logistics and delivery industry.

Image: Depositphotos.com

I didn’t even realize this opportunity existed. Thanks for the info.

Only this post proved that any body is not equal you and your level

This is the most incorrect information on FedEx Routes I have ever seen!!!! I am a FedEx Ground contractor and more than half of this info is factually incorrect. Who was the source of this article????

I’m looking to get into this business and am curious to know your take… What was incorrect?

Same question as KH, care to share more thoughts? Thank you!

Hello, if you own a Fed ex route, can you message me on your take of what info in this article is incorrect and any info that might be helpful? I am looking to get into the business and am curious on your experience, thank you.

Hi Sir I am in the market to buy a rout in Tampa. I am very interested in you knowledge and experience in this matter. Could you share your experience with me . I want to make a wise decision. Thank you

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FedEx Ground specializes in small package transportation, pickup and delivery. You can get a FedEx Ground route contract if you are an independent business that is established as a for-profit corporation and are registered and in good standing in the state in which you plan to conduct business. The first step toward achieving the contract is to submit the Request for Information to FedEx.

Request for Information (RFI)

The RFI is essentially a description of your business capabilities, experience and otherwise suitability to have a FedEx Ground route. It allows FedEx Ground to evaluate your company's ability to achieve results. Per the company website, here is a sample of the areas that are evaluated:

• Background/financial viability
• Customer service approach
• Current resources and capacity (equipment and employees) and ability to expand during peak season
• Safety commitment and experience
• Plans for handling pickups
• Security (loss and damage avoidance)
• Contingency situations
• Legal compliance

If you are confident that you can meet these requirements and want to contract with FedEx Ground, go to FedEx Ground's website and go to the "Get Started" page to apply.

Types of Ground Routes

There are two types of FedEx Ground services available to contractors:

• Pickup and Delivery contracts involve package pickup from shippers and transportation to a local FedEx Ground station as well as package pickup from a FedEx Ground station and delivery to a commercial business or residential customer.
• Linehaul contractors transport packages in FedEx Ground-owned trailers over the road from hub to hub and station to hub.

FedEx Verification Requirements

FedEx Ground must verify that your business qualifies for a contract. To ensure you are deemed suitable you need to:

• Meet FedEx Contracting Standards
• Submit a formal response to the company's Request for Information

Contracting and Service Standards

Your business must be organized as a legal corporation. As an independent business owner, you are expected to:

Hire and train your own drivers and staff

You are responsible for wages, salaries, benefits, employment taxes, unemployment insurance, workers’ compensation coverage, and any others fees mandated by local, state and federal governments.

• You are responsible for payroll deductions, maintaining payroll and employment records, and complying with all applicable local, state and federal laws (including wages, deductions, overtime, rest and meal periods and the U.S. Fair Labor Standards Act.

You are responsible for providing FedEx Ground-approved apparel for all employees who have contact with the public under the terms of the agreement. * Purchase or lease your own vehicles

It is your responsibility to obtain insurance coverage, including, but not limited to, public liability such as automobile/truckers bodily injury and property damage coverage and workers’ compensation consistent with the agreed-upon minimum coverage requirements. 

• For pickup and delivery, you provide suitable vehicles such as step vans and cargo vans.* Plan and execute your day-to-day operations

FedEx expects you to agree to designate the following representatives to communicate with FedEx Ground:

• Authorized officer : An officer of the corporation designated to address the contractual or financial issues of the business
• Business contact : An individual designated to be the touch point for day-to-day operational issues
• FedEx Ground: Contractor Requirements
• FedEx Ground: Get Started
• FedEx Ground: Types of Opportunities
• FedEx Ground: Contracting Standards
• FedEx Ground: Frequently Asked Questions
• FedEx has two types of contractor routes. FedEx Ground primarily services commercial customers. FedEx Home Delivery makes package deliveries to individual homes. The two types have different requirements concerning truck types and business hours.
• If your business is not already incorporated, you should know how long it takes to become incorporated in your state before you contact FedEx. Also, check the availability and time frame to obtain the vehicles you will need.
• FedEx Ground has more than 4,000 independent contractors. These contractors sometimes put their business and routes up for sale. Buying an established FedEx route business may be a quicker way to get a route in your area.
• As an independent contractor with FedEx, your corporation will be responsible for all expenses including vehicle maintenance and repairs, employee wages and benefits and your own profit or salary. Make a detailed budget of expenses and revenues before entering a contract with FedEx Ground.

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Starting or expanding a delivery or logistics company can be an exciting but daunting task. To ensure that your business has a solid foundation and attracts potential investors or partners, you need a comprehensive business plan. And if you're specifically interested in becoming a FedEx authorized service provider, ClickUp's Business Plan Template for FedEx is the perfect tool for you.

This template will help you outline your company's vision, goals, target market, operational strategies, financial projections, and marketing plans—all tailored specifically for the delivery and logistics industry. With this template, you can confidently secure funding and chart a course for success as you embark on your journey to becoming a FedEx authorized service provider. Don't miss out on this opportunity to set your business up for growth and profitability—get started with ClickUp's Business Plan Template for FedEx today!

Business Plan Template for Fedex Benefits

Writing guidelines-

• markdown format
• 75 words: 1-2 sentence description with bulleted list that starts with a different word each
• tone of voice is casual professional that's enticing and confident

Example:Ready to take your delivery or logistics company to new heights? The business plan template for FedEx can help you do just that by:

• Clearly defining your company's vision, goals, and target market
• Outlining effective operational strategies to optimize your business
• Creating accurate financial projections to secure funding and attract investors
• Developing comprehensive marketing plans to reach your target audience
• Setting a solid foundation for your business to ensure long-term success

Main Elements of Fedex Business Plan Template

If you're an entrepreneur or business owner looking to start or expand a delivery or logistics company, ClickUp's Business Plan Template for FedEx is here to help you outline your company's vision, goals, and strategies.

This template includes:

• Custom Statuses: Keep track of your progress with statuses like Complete, In Progress, Needs Revision, and To Do, ensuring that every aspect of your business plan is accounted for.
• Custom Fields: Use custom fields like Reference, Approved, and Section to provide additional details and organize your business plan effectively.
• Custom Views: Access different views such as Topics, Status, Timeline, Business Plan, and Getting Started Guide, allowing you to easily navigate through various sections and aspects of your business plan.

With ClickUp's Business Plan Template for FedEx, you can confidently outline your company's future and attract potential investors or partners.

How To Use Business Plan Template for Fedex

If you're looking to create a business plan for your FedEx business, follow these six steps using the Business Plan Template in ClickUp:

1. Executive Summary

Start your business plan with an executive summary that provides an overview of your FedEx business. Include key details such as your business name, mission statement, target market, and unique selling proposition. This section should be concise but compelling to grab the reader's attention.

Use the Docs feature in ClickUp to write your executive summary and keep it easily accessible.

2. Company Description

In this section, provide a detailed description of your FedEx business. Explain your business structure, ownership, and any legal considerations. Discuss your business's history, its current operations, and future goals. Also, highlight the specific FedEx services you offer and how they meet the needs of your target market.

Use the Table view in ClickUp to organize and present information about your business structure, operations, and goals.

3. Market Analysis

Conduct a thorough market analysis to understand the competitive landscape and identify opportunities for growth. Research the FedEx industry, your target market, and your competitors. Analyze market trends, customer demographics, and purchasing behavior. Use this information to develop a comprehensive understanding of your market and how your business fits into it.

Create custom fields in ClickUp to track and analyze market data, customer demographics, and competitor information.

4. Marketing and Sales Strategy

Outline your marketing and sales strategies to attract and retain customers. Define your target market segments and develop a marketing plan that effectively reaches them. Determine the most appropriate marketing channels, such as online advertising, social media, or direct mail. Additionally, detail your sales approach and any partnerships or collaborations that can help drive sales.

Use tasks in ClickUp to create a timeline for your marketing campaigns and assign responsibilities to team members.

5. Operations and Management

Describe the daily operations of your FedEx business, including your supply chain, logistics, and customer service processes. Highlight your team's experience and expertise, as well as any key partnerships or vendor relationships. Discuss your organizational structure, roles, and responsibilities. Also, outline your business's legal and regulatory compliance measures.

Utilize the Gantt chart feature in ClickUp to visualize your operations and manage project timelines.

6. Financial Projections

Provide financial projections for your FedEx business, including revenue forecasts, expense estimates, and cash flow analysis. Include a profit and loss statement, balance sheet, and cash flow statement. Also, discuss your funding requirements, investment opportunities, and potential risks. Present your financial projections in a clear and organized manner.

Use the Dashboards in ClickUp to create visual representations of your financial projections, monitor your business's financial health, and track key performance indicators.

By following these steps and utilizing the Business Plan Template in ClickUp, you can create a comprehensive and compelling business plan for your FedEx business.

Get Started with ClickUp’s Business Plan Template for Fedex

Entrepreneurs and business owners looking to start or expand a delivery or logistics company, including those interested in becoming a FedEx authorized service provider, can use the ClickUp Business Plan Template for FedEx to outline their company's vision, goals, target market, operational strategies, financial projections, and marketing plans.

Here's how to make the most of this template:

Hit "Add Template" to sign up for ClickUp and add the template to your Workspace. Choose the Space or location in your Workspace where you want to apply this template.

Invite relevant team members or guests to your Workspace to start collaborating on your business plan.

Utilize the different views available to organize and visualize your business plan:

• Use the Topics View to break down your plan into different sections and topics.
• The Status View will help you track the progress of each section and task.
• The Timeline View allows you to set deadlines and milestones for your business plan.
• The Business Plan View provides an overview of your entire plan, allowing you to see the big picture.
• The Getting Started Guide View offers a step-by-step guide to help you navigate the template.

Customize the template by adding the following custom fields:

• Use the Reference field to link supporting documents or resources to specific sections.
• The Approved field can be used to indicate which sections have been reviewed and approved.
• The Section field allows you to categorize and organize different sections of your business plan.

Organize tasks into four different statuses: Complete, In Progress, Needs Revision, To Do, to keep track of progress.

Update task statuses as you work through your business plan to keep everyone informed of progress.

Monitor and analyze your business plan using ClickUp's features to ensure maximum productivity and success.

By using the ClickUp Business Plan Template for FedEx, you can create a comprehensive and well-structured plan that will help you secure funding, attract potential investors or partners, and set a solid foundation for your delivery or logistics company.

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Novotel Moscow City 4 stars Family friendly Ecocertified

88 88 photos/video

83 83 photos/video

Description

Novotel Moscow City

Hotel that makes every moment matter

The Novotel Moscow City is the only hotel in the famous Moscow City business area of the capital among the highest skyscrapers in Europe, with exciting sky decks and restaurants with panoramic views. The hotel is perfect for business and holiday. Rooms with panoramic windows, a restaurant and a bar, the InBalance welness center, 8 conference rooms, and an underground parking are at guests' disposal.

Novotel Moscow City has a good location within walking distance to the one of the largest Afimall City Shopping and Entertainment Mall, Expocenter, Moscow River Embankment and Krasnaya Presnya Park. The Hotel is also easily accessible by the public transport: several subway and public transport stations, including express to Sheremetyevo and Vnukovo International Airports.

Hospitality and high standards of one of the largest hotel operators in the world Accor in a modern business district of Russia. Novotel Moscow City is perfect for relaxation, ideal for business. Welcome!

Take advantage of the opportunity to book a buffet breakfast on the website for the price of 1,700 rubles per person! The cost of the breakfast when paid at the reception and in the MC Traders restaurant is 1,950 rubles per person.

Hotel extras

Free Wi-Fi, newspapers and maps of Moscow. 5 minutes to the Expo Center.

A minute to the Afimall shopping center with lots of shops, cafes, cinemas.

2 minutes to the highest observation deck in Europe and no-limit ice cream.

4 metro stations and Moscow Central Circle station near the hotel.

15-minutes drive to the Kremlin.

Our accommodation(s)

Page out of

Superior Room with queen-size bed

• 25 m² / 269 sq ft
• Bedding 1 x Double bed(s)
• Views: Courtyard View

From NaN RUB NaN RUB Note  *

Fees and taxes included

1 night | 1 adult

Superior Room with 2 twin beds

• Bedding 2 x Twin bed(s)
• Views: City View

Deluxe room with a double bed

Executive Room with king-size bed.

• 34 m² / 365 sq ft
• Bedding 1 x King size bed(s) and 1 x Double sofa bed(s)

Executive Deluxe Room with double bed and sofa.

• 40 m² / 430 sq ft
• Bedding 1 x King size bed(s) and 1 x Single sofa bed(s)

Deluxe with a double bed for guests with limited mobility

• Accessible room

Executive room for guests with limited mobility with King-size bed

• 33 m² / 355 sq ft

Junior suite for guests with limited mobility with a King-size bed

• 58 m² / 624 sq ft
• Bedding 1 x Double bed(s) and 1 x Double sofa bed(s)

Junior Suite Room with king-size bed and sofa

Suite Room with king-size bed and sofa

• 54 m² / 581 sq ft

City Suite with 1 King-size bed and sofa

• 75 m² / 807 sq ft

Hotel location

Presnenskaya Naberezhnaya, 2, Presnenskaya Naberezhnaya 2, Russia 123112  Moscow Russia

GPS : 55.748069, 37.53685

Contact email [email protected]

Click to copy the email address

Access and transport

Kiev railway station

Railway station

Access: 4.9 km  /  3.04 mi     15 min drive

Tourist attraction

Access: 5.6 km  /  3.48 mi     15 min drive

Historic monument

Access: 6.3 km  /  3.91 mi     15 min drive

TRETYAKOV GALLERY

Access: 7.5 km  /  4.66 mi     20 min drive

Access: 7.5 km  /  4.66 mi     18 min drive

Shuttle on call, Shuttle scheduled

Saint Basil's Cathedral

Access: 7.5 km  /  4.66 mi     15 min drive

BOLSHOI THEATER

Opera/symphony/concert hall

Access: 8.4 km  /  5.22 mi     20 min drive

"Krasnaya Presnya" park

Access: 2.1 km  /  1.3 mi     15 min walk  /  7 min drive

"Afimall City" shopping center

Shopping district

Access: 200 m  /  0.12 mi     5 min walk

Hotel services

Check-in from 03:00 PM - Check out up to 12:00 PM

• Wheelchair accessible

Fitness center

• Air conditioning
• Meeting rooms
• 100% Non Smoking Property
• Room service

MC Traders offers a wide range of delicious international cuisine and cooking classes. The guests can enjoy Early bird breakfast from 4 am; hold a meeting during a business lunch and in the evening relax next to a real fireplace in the bar.

MC TRADERS BAR

Located in the hotel lobby, the MC Traders lounge bar is the ideal place to relax. A wide range of drinks and snacks is available to suit all tastes.

4 options for you to chose from depending on your tastes. A snack at reception from 4AM. A buffet breakfast. For those in a hurry, hot drinks, orange juice and croissants served at the bar. Room service.

At our charming wellness and fitness center, you can enjoy our 2 saunas, 2 hammams (Turkish baths), relaxation rooms and massage treatments. Our mission is to make sure you can enjoy complete relaxation.

Meetings & Events

Our guest reviews

100% genuine reviews from our guests

ALL Rating  4.5/5  2,767 reviews

TripAdvisor Rating  4.5/5  1,821 reviews

Good loacation & Cozy Environment

Customer review rating 5.0/5

Anonymous Business - 3/16/2024 Confirmed reviews ALL

It was my first time staying in this hotel. It was beyond my expectations. In general; the hotel is clean well orginized and pay attention to their guest’s satisfaction.

Dear Burak! Thank you very much for your glowing review regarding your stay at Novotel Moscow City! We are thrilled to hear that you have a great impression about your stay, as well as our hotel team! It is a pleasure for us to bring comfort and positive emotions to our Guests providing courteous, warm and welcoming service. We are glad that you highly evaluated our work! We are looking forward to welcoming you back at our hotel! Warmest regards, Irina Naumova Quality and Attitude Manager.

Wonderful Stay as always !!

TripAdvisor rating 5.0/5

andyrocks_globe 3/5/2024 TripAdvisor review

During my recent stay at Novotel Moscow City from 9th to 22nd February, I was pleasantly surprised by the warm reception I received from the duty manager Marika. Her friendly demeanor and efficient handling of check-in made me feel welcome and valued as a guest as always. I also want to extend my appreciation to the night manager Maria for her attentiveness and quick response to any requests or concerns I had during my stay. Her professionalism and dedication to ensuring a comfortable experience for guests did not go unnoticed. The F&B Manager Darina and her associate Yulia deserves special recognition for their exceptional service and attention towards the incredible experience. I am extremely glad with the fact that how she is concerned with every details to make the valued guest feel exceptional during the stay. Lastly, I would like to express my deepest gratitude towards Deputy GM Marina for her overall management of the hotel. Her leadership and commitment to guest satisfaction were evident throughout my stay, and I truly felt well taken care of under her supervision.

Dear Andy! Thank you very much for your glowing review regarding your stay at Novotel Moscow City! We are thrilled to hear that you have a great impression about your stay, as well as our hotel team! It is a pleasure for us to bring comfort and positive emotions to our Guests providing courteous, warm and welcoming service. We are glad that you highly evaluated our work! We are looking forward to welcoming you back at our hotel! Warmest regards, Irina Naumova Quality and Attitude Manager.

Fantastic place

Customer review rating 4.5/5

Anonymous Friends - 1/14/2024 Confirmed reviews ALL

Good location, near to a big mall ( 4 minutes of walk ) were everything you need is available.

Dear Saud! Thank you for your kind feedback. We are glad to know that you enjoyed your stay with us. Looking forward to welcoming you back. Sincerely, Irina Naumova Quality and Attitude Manager.

Well located

Customer review rating 4.0/5

Vitaly Y. Business - 12/9/2023 Confirmed reviews ALL

1. Process of lamp light replacement should be managed more effectively. 2. It is too noisy in the inner rooms - noise from events (bad sound isolation) 3. All other aspects are on the good level.

Dear Vitaly! Thank you for your kind feedback. We are glad to know that you enjoyed your stay with us. Looking forward to welcoming you back.

well located, good stay

Davit S. Business - 12/9/2023 Confirmed reviews ALL

Thank you for everything?

Dear Davit! Thank you for your kind feedback. We are glad to know that you enjoyed your stay with us. Looking forward to welcoming you back.

In partnership with  TripAdvisor

Web-users rating

Other web-users rate our hotel

• 865 reviews 9.4/10 Location
• 1,445 reviews 7.4/10 Room
• 1,245 reviews 8.8/10 Service
• 19 reviews 4.2/10 WiFi
• 899 reviews 9.6/10 Breakfast
• 511 reviews 7.6/10 Cleanliness
• 144 reviews 5.5/10 Amenities
• 108 reviews 9.5/10 Location
• 192 reviews 7/10 Room
• 168 reviews 9.2/10 Service
• 143 reviews 9.7/10 Breakfast
• 57 reviews 6.9/10 Cleanliness
• 10 reviews 5.2/10 Amenities
• 117 reviews 9.6/10 Location
• 204 reviews 6/10 Room
• 155 reviews 8.2/10 Service
• 128 reviews 9.4/10 Breakfast
• 69 reviews 7.4/10 Cleanliness
• 68 reviews 5.4/10 Comfort
• 26 reviews 4.9/10 Amenities
• 41 reviews 9.2/10 Location
• 116 reviews 6.8/10 Room
• 81 reviews 8.3/10 Service
• 51 reviews 9.8/10 Breakfast
• 38 reviews 7.6/10 Cleanliness
• 6 reviews 5.2/10 Amenities
• 35 reviews 9.5/10 Location
• 59 reviews 7/10 Room
• 52 reviews 8.7/10 Service
• 34 reviews 9.7/10 Breakfast
• 25 reviews 7.9/10 Cleanliness

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ibis Moscow Dynamo 3 stars

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Price from: 1 night for 1 person in the room category identified within the same price range, excluding additional services and breakfast. This refers to the lowest public price, including all taxes ( VAT and tourist tax included) for the accommodation concerned, found on https://all.accor.com/ site today, for a one-night stay in the next 20 days . Varies according to period and availability. The price is only guaranteed at the time of booking. All bookings (foreign) are payable in the local currency where the hotel is situated. Only the amount confirmed during the booking in the hotels local currency is guaranteed. An estimated conversion in your local currency may be given for reference but is not part of the contract. Your bank may charge you bank fees and/or exchange fees at the time of payment.

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• - RUS - Gorod Moskva: Moskva (101000)

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