Choose the RIGHT ROUTES FOR YOU
Choose your routes based on your investment profile.
STARTER ROUTES
GET YOUR FOOT IN THE DOOR WITH A LOWER CAPITAL INVESTMENT
This type of listing would generate revenue at or below a $1M. The appropriate buyer for this type of listing should expect to be heavily involved in daily operations.
Starter routes should be purchased by an owner/operator willing to drive. This provides a great opportunity to get into the FedEx space before acquiring more routes.
This is ideal for buyers who want a conservative approach. These type of routes require a lower capital investment but a greater time commitment. This is because there is not enough revenue to support heavy management structure. However, this is a long term strategy for learning and growing in the space.
If you buy a route with less than 1M in annual revenue, you should be prepared to drive to sustain profitability. This does not entail driving everyday, but this does mean helping your team smooth out delivery demands by dealing with issues and helping drivers that may be struggling on high volume days.
VOLUME ROUTES
HIT THE GROUND RUNNING WITH HIGH VOLUME ROUTES
There are typically 11 to 24 routes in this type of listing. Routes this size afford returns of scale and allow for paid managers. Volume routes provide an opportunity to make more profit. However, they require greater capital investment, deeper managerial expertise, and are subject to increased scrutiny from station management.
These types of routes are good acquisitions for buyers that would rather manage than drive. There is typically enough revenue to pay for a more sophisticated management structure.
Volume routes generate between $1.4M to $3M+ annual revenue. The initial capital investment for this type of listing is between $300K to $500K.
Listings with more than $3M in revenue may have multiple CSAs and may operate in more than one station. This type of listing will typically have an operational facility, and sometimes, even an in-house mechanic. Routes of this scale usually require extensive managerial and logistics experience. Due to the higher capital investment, these acquisitions entail more risk but also more potential reward in the form of higher profits.
