Podcast Summary: The Brian Beers Show

Episode: The $87B FedEx SIDE HUSTLE No One Talks About | 289
Date: October 6, 2025
Host: Brian Beers

Episode Overview

In this episode, Brian Beers delves into the often-misunderstood world of FedEx route ownership—a business model that is frequently pitched as a lucrative "side hustle" with low marketing needs and strong cash flow. Drawing from his own due diligence, real market examples, and candid analysis, Brian explores the real pros, cons, risks, and operational headaches of investing in FedEx routes, questioning if it's truly an overlooked goldmine or a potential pitfall.

Key Discussion Points & Insights

1. How FedEx Route Ownership Works

• FedEx has effectively "franchised" delivery without officially calling it a franchise.

• The country is divided into routes, which are sold to owner-operators responsible for:

  • Hiring drivers
  • Purchasing trucks
  • Delivering packages
  • Maintaining service standards

• There are two primary types of routes:

  • Last Mile (Pickup and Delivery): Delivers packages to homes and businesses
  • Linehaul: Long-distance, tractor-trailer transport between terminals

Tone: Informal, direct, “kind of acts like a franchise, kind of smells like a franchise, but they're actually an independent business.” (02:00)

2. Financial Breakdown: Real-World Examples

Brian shares an in-depth look at listings for FedEx routes for sale (Pennsylvania region), using real numbers from BizBuySell:

• Allentown, PA

  • 30 routes
  • $950,000 cash flow
  • Asking price: $1.3 million (3.3x cash flow)
  • 3 managers, 32 vehicles (2 backups), operational since 2015
  • Profit per route: ~$30,000

• King of Prussia, Montgomery County

  • 14 routes; $430,000 cash flow; Asking $1.4 million (3.3x cash flow)
  • Profit per route: ~$30,000

• Smaller Example

  • 8 routes; $200,000 cash flow; Asking $600,000 (3x cash flow)
  • Profit per route: ~$25,000

Key Insight:
Buying a business at 3x earnings with built-in “no marketing, no sales” and weekly payment from FedEx sounds attractive. Many owners scale from a few routes up to large portfolios due to the ability to expand.

3. Upsides of FedEx Route Ownership

• Built-in customer base: No need for outbound marketing or sales—FedEx provides the packages.
• Scalable: Possibility to buy more routes and grow operations.
• No storefront/rent: Use FedEx terminals as base of operations.

“You have a built-in customer base where, you know, FedEx is the one who provides all the packages. Like there's no marketing, there's no sales.” (08:00)

4. Major Risks and Downsides

a. Single Customer Dependency—FedEx Controls Everything

• Complete reliance on FedEx for volume, pay, and contract terms.
• All control (pricing, routes, rules) is dictated by FedEx.
• Limited opportunity for personal business innovation or expanding sales.

"You have one customer and it is FedEx. FedEx dictates literally everything you do... You have zero control." (11:00)

b. Financing Challenges

• Most assets are depreciating trucks.
• Banks are wary; lending is difficult due to the nature of the collateral.
• Deals often require seller financing or significant cash/down home equity.

"Banks don't like lending to these businesses... what you are buying are trucks. And trucks are a depreciating asset." (14:00)

c. Strict Performance Contracts

• Failure to meet tight delivery/window metrics can result in penalties, delayed/reduced payments, even contract termination.
• Small operational hiccups can jeopardize the entire business investment.

d. High Owner Involvement (Especially When Short-Staffed)

• High driver turnover means owners frequently cover delivery shifts, sometimes during peak/holiday times.
• Even in large operations with managers, owner intervention is common.

“And guess who was driving it? The owner was driving the vehicle... because he had to. Nobody wants to drive a FedEx truck on a Sunday morning around Christmas...” (17:00)

5. Cautionary Takeaways

• Unlike other independent businesses or franchises, you are “handcuffed” to one company’s rules, pricing, and expectations.
• Risks may outweigh returns for those seeking independence or less hands-on management.
• If you have the capital, stamina, and temperament for high-control, operationally demanding businesses, it could potentially work but goes against the “passive income” dream.

"I don't like the idea of being handcuffed by having one person, one company that dictates my pricing, dictates everything that I can do, holds me to a very strict standard." (23:20)

Notable Quotes & Memorable Moments

• On Evaluating the Opportunity:

  "Is this a lucrative investment that you’ve been sleeping on or something you should avoid at all costs?" (00:25)

• On the Franchise-Like Model:

  "They kind of act like a franchise, they kind of smell like a franchise, but they're actually an independent business." (02:00)

• On High Cash Flow Multiples:

  “Honestly, to buy a business making that much money for like three times earnings is pretty good.” (09:00)

• On Being at the Mercy of FedEx:

  “Are you comfortable with literally having no control of what it is?... For me, like, I don't know if I want that.” (12:00)

• On Owner Burnout:

  "This guy had a big team, but he was still in it… and at that point, he was like, wait a minute. Like, I don't want to do that." (18:30)

• On Picking Your Problems:

  “All businesses are hard. You just gotta pick your hard.” (28:00)

Important Timestamps

• 00:00 – Introduction; overview of why FedEx routes intrigue investors
• 02:00 – How the route model functions (pseudo-franchise explanation)
• 06:30 – Step-by-step: How to find FedEx routes for sale & analyzing listings
• 09:00 – Breakdown of cash flow, price multiples, and operational details
• 12:00 – Discussion of control, contract, and risk of single-customer business
• 14:30 – Financing and why banks are hesitant
• 17:00 – Owner’s real-world example of having to drive trucks themselves
• 23:20 – Brian’s personal verdict and discomfort with control/risk
• 28:00 – Final thoughts: Know your appetite for risk, labor, and “picking your hard”

Conclusion & Call To Action

Brian closes with a challenge to listeners:
Consider not just the numbers, but the operational headaches, control risks, and financing limitations before jumping into FedEx route ownership. Reflect on your business style and risk tolerance, and weigh whether a more traditional franchise or independent business might offer greater flexibility and control.

“Would you buy one? Or do you think you’d rather go the franchise route or independent business route where you have a lot more flexibility, you can sell to different people, you have a lot more control?” (29:00)

For franchise builders and side hustle seekers, this episode offers a candid, numbers-driven reality check on the FedEx route business—a must-listen before making that big investment leap.