How Much Can You Make Owning A FedEx Route?

How do I become an independent contractor for FedEx?

The qualifications for work as an independent contractor for FedEx Ground include: At least one year of commercial driving experience within the last three years; Have no record of positive alcohol or drug test; Have a current commercial driver’s license; and..

Are FedEx drivers employees or contractors?

Unlike competitor UPS, which treats all its drivers as employees, FedEx has long called many of its FedEx Ground drivers Independent Contractors, which means it doesn’t have to provide basic benefits, overtime pay, workplace protections, or other employee rights.

How much does a FedEx contractor make per package?

Fedex Ground Independent Contractor SalaryAnnual SalaryWeekly PayTop Earners$96,000$1,84675th Percentile$67,000$1,288Average$56,451$1,08525th Percentile$34,500$663

Is owning a bread route worth it?

1. A bread route provides a stable income opportunity. You can purchase a bread route for a lot less than what it would take to buy into most other business opportunities. Once you establish your territory and get a regular stream of deliveries going, then your income will become very stable.

How much do FedEx route owners make?

A route owner can make an annual profit of $30,000 to $50,000 on a single route, he said. Each business has a unique contract with FedEx that outlines the terms of how they’ll be paid. FedEx usually pays route owners based on how many stops the truck makes and how many packages the driver picks up and delivers.

Can you finance a FedEx route?

FedEx routes have only been eligible for SBA financing for a few years, and many lenders and business brokers are not aware of this. Very few lenders want to finance FedEx routes and even fewer understand the FedEx business model enough to get the loan underwritten and approved.

Is buying a route a good investment?

Buying a bread route can be a good investment, but, like any job, there are pros and cons to owning a route business. The pros are that you get to be your own boss, set your own hours, make a steady income, and grow your business to increase your earnings.

Why are so many FedEx routes for sale?

FedEx Ground contractors cite many reasons for selling FedEx Ground routes. Many of our sellers are ready to retire, spend more time with family, or focus their business efforts elsewhere. We also often post FedEx routes for sale that represent only a portion of one contractor’s business.

Is FedEx line haul a good business?

There are two distinct types of FedEx Ground routes: pick-up and delivery (P&D) routes or linehaul runs. Linehaul runs are a lucrative and risky business. Some contractors say linehaul runs are 90% boredom and 10% terror. But they can be an incredibly profitable investment for the right contractor.

Can you buy a UPS route?

Fedex and UPS aren’t franchises. Their routes aren’t sold or bought. Their drivers are employees that are assigned a route. The route is determined by corporate (and computers), not by the driver.

Is it worth buying a FedEx route?

As a relatively sound and stable investment, FedEx routes can show an average increase of 15% per year. … You can spend countless nights wondering how much does it cost to buy a FedEx route, but you would be better served to understand the benefits and opportunity that being an operator can present.

How many FedEx routes can you own?

five routesIn 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.

How does owning a FedEx route work?

In a nutshell, route owners inherit an established book of business and need to purchase the equipment necessary to successfully do the work. When it comes to FedEx routes, individual owners set their workers pay, which can be hourly or daily. Within legal and FedEx guidelines, the owner sets the wage and frequency.

How much is a FedEx route cost?

The average FedEx route costs approximately $100,000. At the same time, you can expect to employee approximately between 7 – 10 people. From there, it’s all about the little things: trucks, uniforms, decals, and software.

How much do you make owning a Pepperidge Farm route?

Average Pepperidge Farm Incorporated Route Sales Representative yearly pay in the United States is approximately $45,033, which meets the national average.