First of all, FedEx does not offer franchises in the United States at least. When it comes to routes, instead you actually purchase your own route, which is essentially a small business.2019-11-06
How much can you make owning a FedEx route?
As you look to buy a FedEx Ground route, look for P&D businesses with profit margins between 10%-25% of revenue. These are healthy businesses! For example, if you purchase a FedEx Ground route with approximately $800,000 in revenue per year, you can expect to pull in approximately $120,000 in profit (or 15%).
Are FedEx routes profitable?
FedEx routes can be highly profitable, but they may not offer the full potential profitability of starting a business from scratch. If you invent something new or capitalize on a new market, you could conceivably make more money that way.2021-01-13
How much does FedEx franchise cost?
The average cost for a FedEx route is approximately $100,000. And at the same time, you can expect to hire between 7 to 10 employees. It's all about some little things like trucks, uniforms, decals, and software.
How much does FedEx business cost?
Delivery commitment5 3rd day by 4:30 p.m.6 Next day by 3 p.m.6
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FedEx® Small Box $9.95 $36.30
FedEx® Medium Box $12.95 $40.05
FedEx® Large Box $20.00 $47.45
FedEx® Extra Large Box $32.35 $53.85
How do I get a FedEx franchise?
- Determine Whether You Qualify. Answer a few simple questions to determine whether you qualify for the FASC program. ...
- Create a FedEx Account. If your store is new or you're taking over a store from a previous owner, set up a new FedEx account number by calling 1.800. ...
- Fill Out an Application.
How much is it to buy a FedEx route?
An average priced FedEx Ground route for sale will require a down payment of around $150,000-$200,000, plus working capital. Higher cost routes, like our premier linehaul listings, may require down payments in excess of $1,000,000.2019-01-21
How much are FedEx routes worth?
When it comes to FedEx routes worth, history shows that they generally sell between 2.5 to 3 times the free cash flow of the business — with many routes averaging approximately $40K in profits.2018-04-18
Are FedEx P&D routes profitable?
“A strong pickup and delivery (P&D) operation has a profit margin between 10-20% (on rare occasions near 25%). Linehaul operations have a wide range of profit margins between 15-35%, depending on the composition of the linehaul runs.”2020-12-16