FedEx Routes

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May 30, 2025

by a searcher from Ball State University in Indianapolis, IN, USA

Seems like a ton of these are available at reasonable multiples. Anyone thought about a roll-up approach? Any ever own/operate one?
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Reply by a searcher
from University of Notre Dame in Charlotte, NC 28277, USA
I got out of an LOI on a FedEx business a few years ago and spent many months researching and consulting in this space. Others here have stated some of the risks well. At the end of the day, you're buying a business where 1) FedEx will control how much money you make through a complicated multi-variable contract, 2) you're responsible for significant CapEx, 3) you are regularly required to increase investments for new safety requirements or initiatives chosen by FedEx, and 4) you're reliant on drivers showing up and frequently recruiting new ones. In my research I had difficulty finding owners who were making the return I was expecting for the financial and time commitment. I believe the most profitable way to be involved in this space is to broker the many deals or be a trainer/consultant on an aspect of routes. DM me if you'd like to connect and discuss this further.
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Reply by a searcher
in New Jersey, USA
I went down the rabbit hole on this awhile back. If I recall correctly, the consensus was that FedEx squeezed some of their big contractors out of biz because they wanted to bring some routes in-house. Contractors that invested heavily for/in their routes are sensing the threat and are understandably jumping ship.
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