FedEx Routes - Thin Returnssmart_display

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.

Want to pressure test deals like this? Run your numbers →

Want to see the original listing? View it here →