Looks passive… until you see the numbers.
This FedEx Ground route business sounds like a classic semi-passive play.
It’s listed at $925K, generating $1.2M in revenue and about $210K in cash flow.
But once you run it through financing, the story changes.
Deal Snapshot
After Financing
Here’s what you actually take home:
So you’re putting down about $95K… to make roughly $75K per year.
That’s not terrible — but it’s not compelling either.
Where It Breaks
The real issue is performance vs price.
- Margins at 17% vs ~49% industry average
- 4.4x multiple vs ~1.1x typical range
- Low post-debt cash flow for the size
- Only moderate DSCR cushion
So you’re paying a premium… for a business that’s significantly underperforming.
The Illusion of Passive
This is where people get it wrong.
They highlight:
- Full-time manager
- Drivers already in place
- Turnkey operations
But none of that fixes bad economics.
In route businesses, thin margins mean:
- Driver turnover risk
- Fuel and maintenance volatility
- Constant operational oversight
So even if it looks passive — it rarely is.
What You’re Really Buying
This deal comes down to one reality:
- Stable revenue source
- Operationally structured business
- Weak returns relative to price
BizHub Verdict
This deal scores a 4.3 / 10.
Not because route businesses are bad — but because this one is overpriced and underperforming.
Good structure doesn’t save bad numbers.
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