Quick Answer: How Much Does It Cost To Buy A FedEx Route?

Why are so many FedEx routes for sale?

Overwhelming Rapid Growth Now, they’re managing million-dollar companies and buying more trucks and hiring more people to keep up with all the growth.

That’s more than some owners want to take on.

So, they decide to sell their routes to someone more eager to accept those business challenges..

How much does FedEx pay contractors per package?

As of Dec 22, 2020, the average annual pay for a Fedex Ground Independent Contractor in the United States is $56,451 a year. Just in case you need a simple salary calculator, that works out to be approximately $27.14 an hour. This is the equivalent of $1,086/week or $4,704/month.

What is the starting pay at FedEx?

Average FedEx hourly pay ranges from approximately $14.30 per hour for Package Handler to $30.00 per hour for Packer.

How many FedEx routes can you own?

5 routesTypically, owning up to 5 routes is manageable for a single owner, and can result in a great return. There is some risk, and more routes means more trucks and drivers, and a lot more responsibility. However, with that comes profit. Accruing more FedEx routes can be the savviest investment you make!

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.

Are routes a good investment?

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.

Do FedEx pay weekly?

you get paid weekly and the job isn’t bad, just need to be quick. Co-workers slack a lot, and sometimes the managers as well.

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.

How much do FedEx owner operators make?

How much does an Owner Operator Driver make at FedEx in the United States? Average FedEx Owner Operator Driver yearly pay in the United States is approximately $46,190, which is 79% below the national average.

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.

How much does a FedEx driver make an hour?

The typical FedEx Delivery Driver salary is $19. Delivery Driver salaries at FedEx can range from $11 – $33.

Who makes more money UPS or FedEx drivers?

UPS’ union drivers earn a top wage of nearly $80,000 a year, excluding overtime, plus health care and pension benefits. Those wages will go up 9.4% in 2022. Median annual pay for union postal workers is $57,000. Most FedEx contractors pay drivers about $40,000 a year and some offer health-care benefits.

How much does FedEx Ground pay per mile?

FEDEX Ground CDL-A Team Drivers 65 Cents per mile. FedEx Ground Contractor now hiring for CDL-A Team Drivers for Dedicated team runs running out of the Nashville, TN FedEx Terminal. 401(k) and Company match up to 4%.

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.

Do FedEx drivers load their own trucks?

Yes, the drivers have to buy their own trucks, but the trucks have to be exactly as required by FedEx.

How profitable is a FedEx route?

While a very profitable business, FedEx route businesses do not generate profit margins of 30% or more. … 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%).

How much does a Pepsi route cost?

The average truck route costs about $150,000, says Mr. Sussman, but prices vary widely. A Pepsi route in Queens netting $1,600 a week just hit the market for $439,000, he says.

Can I buy a FedEx route?

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.