Regarding FEDEX Routes. Some have said don't buy one. Routes never make money. Some do not understand why people sell them.
Well.........I am in the process of purchasing a home delivery route that grosses in the low 100's, includes a relatively newer paid off truck and averages 135 - 170 stops per day. It is EXTREMELY easy to verify the profitability of these routes via Fedex Settlement Sheets. Expenses are very straight forward also. My territory will be in a very dense area ( 18,000 residents ). It is a very profitable route. At the same time, I will be entering an agreement to purchase another route from the same seller pretty much under the same conditions. I want to get to three routes in 1 year. I will have back up come peak season from someone who has a large staff of 20+ and I will have back up from someone for vacation time. It is not that difficult to get back up within a terminal that has a group of contractors ( some multi route owners ) that work together. It's in everyones best interest.
If you are a smart business man, you will know how to do diligence and verify whether a particular business model makes sense or not. For some it may not. For others like myself, it makes complete sense. I have looked at at least 50 different businesses ( resales ) over the past 6 months and I have owned 2 other companies in the past ( one for 18 years which I am no longer part of and one for 2 years which I am active in ). As a businessman, I have obviously decided to form my 3rd corporation and yes it will be a trucking and delivery company.
There are numerous reasons why people buy and sell assets whether it be Gold, homes, commercial real estate, routes.....etc. There is value to everything and its a matter of what the seller and buyer agree is fair value at the time of the closing transaction. If you were a commercial real estate owner and wanted to expand to a different area that you thought offered tremendous growth potential and needed to raise capital in order to do that, what is one thing you may consider? Well, how about selling off some of the real esate that was purchased years ago in order to fund your new expansion model?
By doing the correct research, a thorough due diligence and understanding various business concepts, one should be able to identify and decide when any business is a viable one or not.