FedEx is known for inventing express transportation and shipping services to more than 220 countries.
If you are willing to invest in the FedEx route franchise, you are at the right place.
Here we will provide every detail that you need to know before investing in the FedEx route franchise. So let’s begin.
History Of FedEx Route
The FedEx was founded in Little Rock, Arkansas, in 1971 by Frederick W. Smith. When Frederick was in the university, he got an idea to create a company.
So Firstly, He drew up the concept on the paper. In 1973, Frederick originally began operation with 389 members.
They started delivering through small aircraft in 25 states of the USA. It soon became an exclusive carrier of high-priority goods.
In the mid’s 1970, the company began delivery to large aircraft due to great demand, which spurred its rapid growth, and it became the world’s largest full-service, all-cargo airline.
Currently, FedEx has more than 670 locations across the world, and it is one of North America’s largest-volume customs entry filers.
FedEx Route Franchise Model
| Initial Investment | $5,000 and $40,000 |
| Franchise Fee | $9,250 |
| Area Requirement | N/A |
| Royalty Fee | 5-6% |
| Total Outlets | 670 |
Business Model Of FedEx Route Franchise
FedEx route franchise business is flexible as compared to other franchise businesses. Another franchise business is typically an agreement that you sign.
They have certain rules, policies, and limitations that you must follow. And in the Franchise, there are no clauses that will stop you from bringing up your business.
They have simple terms and policies. You can use your truck as your own supplies and grow and split your routes within your territory.
Advantage Of FedEx Route
- Access to existing infrastructure
- A reliable business model
- Semi-passive income
- Potential for Future sales.
The Disadvantage Of FedEx Route
- Demand for initial capital
- Inconsistent of cash
- Decision pressure
- potentially profitability
How Do I Start A FedEx Route Franchise?
To Own a FedEx Route franchise, you will have to sign a contract with the company and become an independent contractor.
It means that you are not an employee of FedEx and will not receive any kind of privileges that an employee receives by a company like health insurance, retirement plan, or any other benefit.
In addition, FedEx requires that your business is set up as a corporation, not as an employee.
Frequently Asked Question
How much does a FedEx contractor make per package?
We can’t predict the cost because the cost varies depending on location and distance. But on an average basis, a FedEx Contractor makes about $1.50 per SmartPost Parcel.
Is a FedEx route a good franchise business?
Yes, the FedEx route is a high-profitable business.
How much does the FedEx franchise cost?
The FedEx Franchise average cost is $5,000- $40,000.
Amit Gupta is the founder of DrFranchises. He has a keen interest in investments, and has thus far invested in a few franchises. Franchise businesses are his forte- he knows all there is to know about their space requirements, fees, ROI potential, and business models. This makes him an ideal candidate for anyone looking to invest in a franchise