- December 14, 2018
- Posted by: Chris Holzgraf
- Category: Buyers and Sellers Hub
We love hearing success stories from our current and previous clients. One story that we’ve heard over and over again is the journey of a contractor from a young driver to the owner of a multi-million dollar FedEx Ground route business.
It’s common for us to hear about how our clients started out in the business. They graduated from school and needed a job. Either a friend or an ad in the newspaper turned them on to the idea of becoming a FedEx delivery driver. They may have even heard about the opportunity to own a FedEx route and truck. Little did they know that their decision to enter the FedEx Ground world would eventually make them a fortune. They got in, learned the business from the ground up, and grew alongside FedEx.
Right Place, Right Time
In the “good old days” as many of our clients put it, FedEx essentially gave routes away to qualified contractors. The average value of a route today is somewhere between $80,000 to $120,000 depending on a variety of factors. In the days when FedEx was rapidly expanding their ground territories, some lucky contractors were presented with the opportunity to take on additional routes at no additional direct cost. It is common for us to hear about someone that came in with one route and ended up with 15-20 routes due to local expansion.
Weathering the Economic Storm
When the Great Recession hit, many business owners found themselves scrambling to “keep the lights on”. Home builders and contractors were taking second jobs at home improvement stores, financial advisers were selling off boats and golf club memberships, and mortgage brokers were lining up in front of temp agencies hoping their skills would transfer to something else. These are just a few scenarios that were the unfortunate picture of our economy. Meanwhile, our Ground contractor clients were as busy as ever, backed by the solid business model and financial strength of FedEx. Never with a disruption of capital or resources, business continued as usual.
Reaping the Rewards
When it is time to move on to the next venture or enjoy a well-deserved retirement, our clients look to us to facilitate the process of turning their hard work into a profitable payout, and occasionally, we are in the fortunate position of helping to turn a FedEx delivery driver into a millionaire.
Ready to hand over the keys after a successful FedEx route career? Contact Us for next steps.