Looking to buy FedEx routes Need Advice from owners

dmac1

Well-Known Member
Once again. What do you own? Let's say you buy an ISP/CSA (or whatever Ex calls it at the moment due to what lawsuit their in). They own the customers, they own the boxes, they own your route. You only have trucks and a year to year contract. Soooooo, You pay 500,000.00 for an ISP. You make 10% a year. 10 years you've made your original investment back, if they haven't changed their business model or terminated you. 10 years you've only made back you investment. How do you get your original investment back? It's not an easy walk away business. You need to not put your own money into it unless you got gambling money laying around.

You own the trucks and nothing else except maybe uniforms if you paid for those.. You have temporary rights to deliver packages that fedex can withdraw unilaterally if they decide to alter their business model, or if they decide that you violated the contract. You have the right to arbitrate if they cancel your contract, but your damages are limited, probably only to potential profit for any time remaining until renewal time. If you 'profited' $5000 a month, that would be your damage limit for each remaining month. If you paid $100k for 'business' and only had 3 months remaining under your contract AND won at an arbitration hearing, you might recover $15k.

Buy a REAL asset instead.
 

bacha29

Well-Known Member
You own the trucks and nothing else except maybe uniforms if you paid for those.. You have temporary rights to deliver packages that fedex can withdraw unilaterally if they decide to alter their business model, or if they decide that you violated the contract. You have the right to arbitrate if they cancel your contract, but your damages are limited, probably only to potential profit for any time remaining until renewal time. If you 'profited' $5000 a month, that would be your damage limit for each remaining month. If you paid $100k for 'business' and only had 3 months remaining under your contract AND won at an arbitration hearing, you might recover $15k.

Buy a REAL asset instead.
You know guys when I hear the phrase "owning your own business" then in my mind's eye you are:.....

The registered owner of a independently managed and self governing enterprise. Now tell me just where are those conditions found when it comes to "contracting" with Fedex?

A few weeks after we 3 Day 1's got our station up and running we had a meeting to exchange our opinions of the daily work experience. One whose name was D spoke up and put it in permanent perspective when he said " I'm sure you guys will agree when I say that we are not and never will be independent contractors....... All we did was buy a job". A cold reality that remains to this very day.
 

bbsam

Moderator
Staff member
You know guys when I hear the phrase "owning your own business" then in my mind's eye you are:.....

The registered owner of a independently managed and self governing enterprise. Now tell me just where are those conditions found when it comes to "contracting" with Fedex?

A few weeks after we 3 Day 1's got our station up and running we had a meeting to exchange our opinions of the daily work experience. One whose name was D spoke up and put it in permanent perspective when he said " I'm sure you guys will agree when I say that we are not and never will be independent contractors....... All we did was buy a job". A cold reality that remains to this very day.
I like the job I bought better than the one o got fired from...so there’s that.
 

express61

New Member
Hello All again,

Sorry I have been silent for a while. I am looking at some routes now and have another question: What is the the average stop per hour for Ground and HD? The routes I am looking at one of the ground routes has a primary and 3 supplementals. Pick ups averages 11 stops and 67 packages per day and Deliveries average 169 stops and 370 packages per day. The HD route runs 2 to 4 supplementals and Delivery averages 361 stops and 424 packages per day.
 
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