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. Humble Beginnings It’s common for us to hear about how our clients started out …
FedEx Ground offers a unique business model that attracts both first time business owners and experienced investors alike. With a solid business model and support from one of the largest companies in the world, owning FedEx routes can be a very wise business decision. How Much Do FedEx Routes Cost? You can use the national …
We will focus on the ISP model when discussing how a FedEx contractor is paid, considering most states have transitioned to this model and the remaining IC states will transition within the next year. Money Buckets As a FedEx ISP owner, you are paid by FedEx in different “buckets”. The fees are broken out as …
As a FedEx Ground route business owner, you know how busy life can be. Between overseeing your morning truck loads, speaking with terminal management, safety meetings, going over manifests, studying load charts, and consulting with your mechanic, your day can fill up in a hurry – and that’s all before 10am. When you are ready …
One major change that came along with the transition to the FedEx ISP business model was the agreement. The FedEx ISP Transition Workbook defines the ISP Agreement as a “negotiated, legally-binding contract between the contracted service provider (CSP) and FedEx Ground. It includes a range of individually negotiated financial and non-financial terms that are unique …
To date of this post, many contractors in states across the country have already made the transition from the FedEx Independent Contractor (IC) model to the Independent Service Provider (ISP) model, however, there are some states that are still converting to the ISP model. Furthermore, buyers entering the FedEx Ground arena will want to take …
For a business to sell quickly and successfully, there is one key component that needs to be present – an accurate price. It is a common mistake of sellers and their brokers to set an unrealistic asking price for FedEx route businesses. The Market Determines the Price Something we regularly tell our clients is that …
You’ve built your business from the ground up. Started out driving a route, had an opportunity to buy in, picked up a few more, then a few more. Before you knew it, you were running a full-fledged FedEx route operation. You’ve made relationships with drivers, managers, and customers. You know this business inside out. This …
With recent changes to the FedEx business model now requiring an entity to service a minimum of 5 routes or 500 daily stops, it is more important than ever for an incoming buyer (and seller) to understand financing options when acquiring ground and linehaul route businesses. Traditional Bank Financing In the past, traditional banks were …
As a FedEx ground contractor, you have many resources at your fingertips that can help you run your operation. We discuss some of those resources, specifically the reports and metrics utilized by contractors on a daily basis. Real-Time Operational Reports CSA-level data and reports, as well as personnel-operator-level data on business operations, are available to …
