Buying and Approval Process for FedEx Ground Routes
If you're considering purchasing FedEx Ground routes, it's important to understand that buying the business is only part of the equation. Unlike many traditional small businesses, acquiring a FedEx route requires approval from FedEx Ground and adherence to a specific transfer process.
In this blog, we walk through the end-to-end buying and approval process so you know what to expect and how to prepare for a smooth transaction.
Step 1: Search for Available Routes
The first step in buying a FedEx Ground business is identifying an opportunity that matches your goals. You’ll want to consider:
Pickup & Delivery (P&D) vs. Linehaul operations
Route density and location
Weekly revenue and net operating income
Fleet condition and included assets
Work with a reputable brokerage (like Route Consultant) that can help you evaluate financials, validate pricing, and understand operational risks before moving forward.
Browse Available FedEx Routes
Step 2: Submit an Offer
Once you've identified a route you'd like to purchase, the next step is to submit a Letter of Intent (LOI) or purchase offer. This outlines:
Proposed purchase price
Deal structure (e.g., all cash, seller financing, SBA loan)
Contingencies such as due diligence, financing, and FedEx approval
The seller will review the offer, negotiate terms if needed, and eventually sign an Asset Purchase Agreement (APA) to initiate the formal sale process.
Step 3: Begin Due Diligence
Before any deal closes, you’ll enter a due diligence period, where you verify the business’s financial and operational performance. This includes reviewing:
Settlement statements from FedEx
Payroll and expense reports
Vehicle ownership and maintenance records
Driver roster and turnover history
Safety and compliance records
This step ensures that the business you’re buying matches what was represented and that you’re fully prepared for ownership.
Step 4: Apply for FedEx Approval
You cannot own or operate FedEx Ground routes without FedEx’s written approval. Once an agreement is in place, the buyer must:
Submit a Contractor Application Packet
Pass a background check
Complete a compliance interview with FedEx
Provide a business entity (LLC, C-corp, or S-corp) and insurance documentation
Meet all operational standards outlined in the Independent Service Provider (ISP) model
FedEx will also assess your financial qualifications and managerial readiness. This step often takes 4 to 6 weeks, depending on how quickly documentation is submitted and reviewed.
Step 5: Prepare for Ownership
While FedEx reviews your application, you’ll work behind the scenes to ensure a smooth transition:
Open bank accounts and establish payroll
Secure vehicle insurance and business coverage
Line up financing (if applicable)
Begin training with the seller (often included in the deal)
If you plan to be hands-off, this is the time to hire and onboard a manager who can oversee daily operations.
Step 6: Final Approval and Close
Once FedEx grants final approval, the deal can officially close. This includes:
Transfer of funds between buyer and seller
Assignment of the FedEx contract to your entity
Transition of vehicle titles and business assets
Notification to the terminal of new ownership
Most sellers remain involved for 1–4 weeks after closing to train the buyer, introduce key terminal staff, and support a smooth transition.
Final Thoughts
Buying FedEx Ground routes involves more than signing a purchase agreement. The approval process with FedEx is detailed and specific, but for good reason. These routes operate within a larger corporate system, and FedEx wants to ensure that each new contractor is positioned to succeed.
At Route Consultant, we guide buyers through the entire acquisition and approval process, from initial search to terminal onboarding. Our team ensures that your investment is protected, your paperwork is compliant, and your first day of ownership sets the tone for long-term success. Ready to take the next step? Browse Available Routes for Sale.
Want to Learn More?
For a comprehensive understanding of FedEx Ground routes, consider enrolling in our FedEx Ground Routes 101 Course. This course provides foundational knowledge to help you decide if investing in logistics routes aligns with your goals.
