FedEx

Pack-and-ship centers: skip the franchise fee, the money is in the mailboxes

Codie pitches building an independent pack-and-ship center (think FedEx/UPS without the 25% franchise fee). The real profit isn't taping boxes — it's renting the little PO box mailboxes out front.

“So this is pack and ship centers. So basically think FedEx, UPS, except get rid of the franchise fees because that's 25% of your, your profit off the top. And instead you just put, you know, Sam and Sean's Shipping Center on the front of it.”

Steal thisOpen an unbranded pack-and-ship store to dodge the 25% franchise fee, and make your margin on rented mailboxes, not box-taping.

Buy a FedEx route and own a delivery monopoly in your area

Shaan explains buying FedEx routes: you pay to become the exclusive delivery provider for a defined area, run the trucks and drivers, and pocket the margin while FedEx supplies all your customers.

“What you do is there's certain like little areas of routes where you can buy to be the exclusive provider as long as you, you know, meet certain service requirements. And so you can become— you can buy a monopoly basically. You can say, I'll be the service provider here, I'll pay this amount, uh, and I'll operate this, this fleet here. And you can make X dollars above what you paid, uh, just for the like, you know, the guarantee— your— all your customers come from FedEx, uh, you just have to run the operations of driving the stuff around.”

Steal thisBuy an exclusive FedEx/UPS route off routeconsultant.com and run it like a local monopoly with guaranteed demand.

5-route FedEx business: $1.9M price, $2.5M revenue, $550k operating income

Shaan walks through a real listing: a company with 5 exclusive FedEx routes selling for ~$1.9-2M, doing $2.5M revenue with ~$550k operating income. With 20% down and an SBA loan you stay cash positive ~$250k/year and repay the down payment within two years.

“He goes, he's selling it for $1.9 million. Um, you get paid on a per package delivered basis. So basically he's selling the business for $2 million. The business makes $2.5 million in revenue with operating income of about $550,000 a year, right? Uh, so he's saying if you bought it with— for 20% down, got an SBA loan for the rest, you're cash positive, um, about $250,000 a year.”