Buying a route as investor

InvisibleCow

New Member
Hi guys,
I'm new to this forum so apologize if my question is against the board etiquette.

I see there are lot of FedEx ground routes for sale due to the likely switch to ISP model. I'm getting an offer for 3 FedEx ground routes (all owned by same owner). It seems like a good deal (not too good to be true kind) and I have an FedEx experienced person who is willing to move to other state to be the manager. The question is do you think one can run a route as absentee owner? I have good faith in the manager but is there anything I should be aware of that might get me in trouble with Fedex?


Thanks in advance.
 

bbsam

Moderator
Staff member
Hi guys,
I'm new to this forum so apologize if my question is against the board etiquette.

I see there are lot of FedEx ground routes for sale due to the likely switch to ISP model. I'm getting an offer for 3 FedEx ground routes (all owned by same owner). It seems like a good deal (not too good to be true kind) and I have an FedEx experienced person who is willing to move to other state to be the manager. The question is do you think one can run a route as absentee owner? I have good faith in the manager but is there anything I should be aware of that might get me in trouble with Fedex?


Thanks in advance.
Authority might be too strong a term, but experienced is not. Get a copy of the contract and see if you can sit down with a senior manager to know exactly what is expected of you on a daily basis. It can be done and is not uncommon. With good planning and a competent manager, shouldn't be too complicated.
 

Cactus

Just telling it like it is
Authority might be too strong a term, but experienced is not. Get a copy of the contract and see if you can sit down with a senior manager to know exactly what is expected of you on a daily basis. It can be done and is not uncommon. With good planning and a competent manager, shouldn't be too complicated.

I'm sure there's many a senior manager who'll be glad to paint you a pretty picture too.
 

bbsam

Moderator
Staff member
I'm sure there's many a senior manager who'll be glad to paint you a pretty picture too.
Not so. Senior manager would probably like the owner "in the building" and of the "hands on type". But contractually it simply isn't required.
 

HomeDelivery

Well-Known Member
HD is easier to manage than Ground...the way HD is set up, the routes can run themselves with a good driver. Ground on the other hand needs a better than average driver because their package vehicles are packed/sorted for them, but they don't get a delivery manifest, turn-by-turns, or a map summary of all their stops in their vehicle for the day.

just be sure that Fedex person you're going to hire to manage your route is very competent when it comes to flexing, vehicle breakdowns, when one of your drivers need an emergency day off, etc... i know of one absentee-owner that had to sell because the manager of his routes wasn't doing so well & losing his bonuses every month.
 

starglacier

Well-Known Member
I think now you have the own three routes just to keep your job. A lot of Ground contracters in Mississippi had to merge to get to the three route
required . You going to be out a ton of money for three routes. You need to look at each route how much there are pulling in. Plus your cost of keeping trucks.
Insurance,worker comp.
 
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