Low involvement on paper - but the numbers don’t justify the price.
This FedEx route business in Birmingham, AL is listed at $2.3M, generating about $2.95M in revenue and $575K in cash flow.
The listing claims it’s mostly passive.
But the numbers tell a very different story.
Deal Snapshot
Let’s run it through a standard SBA-style scenario.
Financing Overview
After debt, you’re left with about $236K per year.
For a $2.3M deal, that’s not impressive.
The Core Problem
You’re paying a premium for a below-average business.
- Massively overpriced: 4.0x vs ~1.1x industry average.
- Low margin: 19.5% vs ~49% industry average.
- Weak efficiency: Less profit per route than expected.
- Limited upside: Hard to justify improving margins significantly.
That’s not a small gap — that’s a completely different level of performance.
The “Passive” Myth
The listing says minimal owner involvement.
But in reality:
- Driver management: Constant hiring and turnover.
- Route execution: Missed deliveries = penalties.
- Fleet issues: Maintenance, breakdowns, replacements.
- Peak season pressure: Volume spikes require coordination.
This is not passive. It’s operationally dependent.
The Biggest Red Flag
This business only has about 2 years of operating history.
- Limited track record
- No long-term performance data
- Unproven stability
And you’re paying $2.3M for it.
That’s a big bet on a very short history.
Additional Risk
There are structural risks here too.
- Higher default rate: ~4.9% vs ~3.6% overall.
- FedEx dependency: Contract terms can change.
- Likely not SBA eligible: Short history raises flags.
- Operational scaling risk: Growth requires more drivers and trucks.
This is not a low-risk income stream.
What This Really Is
This is a pricing problem disguised as a passive business.
- Premium price
- Below-average performance
- Short operating history
You’re taking on risk without getting paid for it.
BizHub Verdict
This deal scores a 4.9 / 10.
It might look passive — but the pricing, margins, and short track record make this a weak deal.
High price. Low efficiency. Limited history.
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