How to Buy a FedEx Ground Route, Step by Step

To buy a FedEx Ground route, you buy an existing contractor's business, not a route from FedEx: find a seller, verify the numbers from FedEx's weekly settlement statements, arrange financing, and get FedEx's written consent to assign the agreement to your corporation before you close. FedEx isn't a party to the sale, but it decides whether you can take over the agreement, so its requirements shape every step.

What FedEx requires of a buyer

• A for-profit corporation, not an LLC. FedEx's contracting FAQ says it contracts with businesses "established as for-profit corporations under state/provincial law in the United States or Canada, and not, for example, with LLCs, LLPs, sole proprietorships, partnerships or limited partnerships (LTDs)."
• Experience and money. FedEx's contracting site says the ideal candidate has experience leading and managing teams as an S or C corporation, including hiring and training W-2 employees, the financial capability to invest at least $100,000, and the ability to own or long-term lease a fleet of vehicles.
• Insurance. The service provider carries truck liability and workers' comp coverage, at the minimums in the agreement.
• Consent to the assignment. In the FedEx Ground Independent Service Provider Agreement filed publicly with the SEC in 2023, neither party may assign the agreement "without the prior written consent of the other, which consent will not be unreasonably withheld." The agreement you'd take over is the one that counts, so read its assignment section.
• Any advance payment the seller received. In a 2024 version of the ISP Agreement filed publicly with the SEC, FedEx can pay a one-time "Advance Contract Service Charge" when an agreement starts. If the agreement is assigned before it expires, the seller repays a share in proportion to the weeks left, and FedEx can make its consent to the assignment conditional on that repayment. Ask whether the seller's agreement includes one and how much would be repaid, and make sure the purchase agreement says who covers it.

How to buy a FedEx route, step by step

1. Decide what kind of operation you want. Pickup and delivery operations run trucks that deliver within a service area. Linehaul operations run tractors that move FedEx trailers between stations and hubs. They're different businesses.
2. Check you meet FedEx's bar, and set up the corporation. Do it with an attorney and an accountant. The corporation is what FedEx contracts with and what the lender lends to.
3. Line up financing early. Talk to an SBA lender before you make offers, so you know what you can buy. Expect to put in at least 10% of the total project cost. See SBA loans for FedEx routes.
4. Find sellers. Business-for-sale sites, route brokers, owners in the market you want, and Route Impact's settlement-verified listings. In select markets, FedEx's "Assignee Marketplace" lets a qualified prospect ask FedEx to share their contact details with current service providers, who can then reach out. FedEx says it isn't a party to those discussions.
5. Sign an NDA and get the documents. 24 months of settlement statements for every CSA, tax returns, payroll, the truck list, the agreement and any open MESO.
6. Make an offer that depends on the right things. A letter of intent subject to your due diligence, your financing and FedEx's consent to the assignment.
7. Do the due diligence. Verify the financials from the settlements, then work through the due diligence checklist and the red flags.
8. Get FedEx's approval. Ask the seller how assignment approval works with their FedEx contact, and start it as early as the seller agrees to. Don't close without written consent.
9. Close with an attorney. Whether you buy the seller's corporation or its assets changes taxes, liabilities and how the agreement and the drivers move to you. Settle that question early, not at the closing table.
10. Take over the operation. Insurance in force on day one, payroll running, truck titles or leases transferred, and a plan for talking to the drivers, who decide whether the first weeks go smoothly.

Common questions

Can I buy a route directly from FedEx?

No. FedEx says it doesn't facilitate the sale or purchase of an existing service provider's business. You buy from the current contractor, with FedEx's consent to the assignment.

Can I buy a FedEx route with an LLC?

No. FedEx contracts with for-profit corporations, and its FAQ names LLCs among the business types it doesn't contract with. Ask your accountant whether an S or C corporation suits you.

Does the seller owe FedEx anything when a route is sold?

It can. In the 2024 ISP Agreement filed with the SEC, a contractor that received a one-time advance contract service charge repays the share for the weeks left on the agreement if it is assigned early, and FedEx can make its consent to the sale conditional on that repayment. Ask the seller before you agree a price.

Do I need a broker to buy a FedEx route?

No. A broker can find sellers and run the process, but nothing requires one. You do need an attorney for the purchase agreement and an accountant for the financials.

How much money do I need?

FedEx says the ideal candidate can invest at least $100,000. With an SBA 7(a) loan, plan on at least 10% of the total project cost from you. The price itself is set between you and the seller.

Do I have to drive the routes myself?

No. FedEx's FAQ says business owners aren't required to operate or be licensed to operate the vehicles.

What should I check before I buy?

Start with the due diligence checklist, and read is buying a FedEx route a good investment before you make an offer.

Buying with verified numbers

Listings on routeimpact.ai/listings show revenue, stops and packages read from the seller's settlement statements and marked verified, with how many weeks they cover. Full financials open in an NDA-gated data room. If a seller sends you a recent statement, run it through Route Impact's free teardown to see the week's revenue mix, with no account required.